Pre-Post IFAS 72 Adoption and Earnings Management: Comparative Evidence From Indonesian Corporate Sectors

Yuliantari Astasuci Nalurita, Muhammad Afif Setyawan

Abstract


This study examines the impact of the mandatory implementation of IFAS 72  on earnings management in telecommunications, construction, and real estate companies in Indonesia. This study uses a quantitative approach with a sample of 120 companies for the observation period of 2016–2023. Earnings management is measured through discretionary accruals using the modified Jones model. The results show that the mandatory implementation of IFAS 72  negatively correlated with earnings management but did not significantly affect it. The analysis also reveals no significant difference in earnings management levels before and after IFAS 72  mandatory implementation. This study contributes to the literature by providing empirical evidence regarding the impact of IFAS 72  implementation on accounting quality, particularly earnings management practices. The implications of this study can provide a reference for standard setters and regulators to evaluate the effectiveness of IFAS 72  implementation in Indonesia.


Keywords


IFAS 72 , Earnings Management, IFRS 15, Accounting Quality

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DOI: https://doi.org/10.21107/jaffa.v13i2.31506

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