Adoption of International Financial Reporting Standards (IFRS) in Indonesia

• Main Author: Hamidah
• Format: Article PeerReviewed
• Language: English; Indonesian; Indonesian
• Published: Sekolah Tinggi Ilmu Ekonomi Perbanas Surabaya 2013
• Subjects: H Social Sciences; HF5601 Accounting; HG Finance; HG3810-4000 Foreign exchange. International finance. International monetary system
• Online Access: http://repository.unair.ac.id/95653/1/Hamidah_Karil-06.pdf; http://repository.unair.ac.id/95653/2/Hamidah_Peer%20Review%20006.pdf; http://repository.unair.ac.id/95653/3/Hamidah_Korespondensi%20Karil%2006.pdf; http://repository.unair.ac.id/95653/; https://journal.perbanas.ac.id/index.php/jebav/issue/view/20; http://dx.doi.org/10.14414/jebav.v16i2.191
• Institution: Universitas Airlangga

The IFRS can be applied in the multi national company (MNC) and listing firms across the country but it does not mean it can replace the national accounting standards that have been owned by respective countries. The accounting standardization is not an easy job because each country has different political, social, and economic background. This study is to reveal the reason and who is behind IFRS adoption in Indonesia. This qualitative research is a case study based on cases representing institutions in Indonesia: DSAK, DPN IAI, BAPEPAM-LK, the finance ministry and the ministry of state own enterprises (BUMN). Data were collected by interviews and using readily available documents and processed with thematic analysis. The result shows the adoption of IFRS decisions is driven by international interests. Indonesia's membership in several international organizations, such as IFAC (International Federation on Accountant), IOSCO, and the G-20, has resulted in the approval of global accounting standards in Indonesia. Each organization has done a variety ways to ensure that its members adopt IFRS. IFRS should be based more on Indonesia accounting needs and should not be only based on a desire particularly coercion from others. In-depth analysis based on the reality of each particular business should be conducted before a decision to adopt IFRS is taken.