WRITER (year) OBJECTIVE RESEARCH RESEARCH SUGGESTION

DESIGN FINDING
Eva K. To examine the This study Consistent with the Future research
Jermakowicz, effects of adopting investigates the authors’ should expands on
Chun-Da Chen, International financial statement perceptions, this results regarding the
Han Donker Financial Reporting effects of 46 study finds that potential benefits to
(2018) Standards (IFRS) on companies from the significant effects of investors from global
financial statements S&P/TSX 60 index adopting IFRS are accounting
of the largest which report under associated with convergence.
Canadian firms IFRS in 2011 and industry practices.
(S&P/TSX 60) listed switched to IFRS The empirical
on the Toronto from CGAAP. This results show that
Stock Exchange study used panel the adoption of IFRS
(TSX) data analysis, in Canada created
which can be more relevant
considered as more financial reporting
powerful when for book value of
conducting cross- equity and net
sectional and in time income in the post-
analysis among adoption periods.
companies.
Theresa Hilliard, To examines how Using hand- Identify specific Next study should
Presha IFRS are applied, collected data standards and do an exploration of
Neidermeyer disaggregates the from the IFRS management the correlation of
(2018) cumulative effect of disclosures, the discretionary changes in share-
the IFRS transition research design choices associated price data with
into magnitude consists of eight with market disaggregated
measurements of regression models reaction. Evidence measures in varying
the standard-to- which test from this study country contexts of
standard fluctuations in demonstrates the firms adopting IFRS
differences (by investment behavior value of or other standard
standard) and as a function of disaggregated implementations
management varying measures of measures to obtain a could be studied.
discretionary IFRS adjustments at more
choices (by choice) aggregated and comprehensive
and tests which disaggregated levels understanding of
transitory effects at including magnitude market reaction and
every level of measurements of associations with
disaggregation alter pronouncements transitory effects of
investor behavior. and management IFRS. Findings from
choices. the study suggest
that the market
favours
management
discretionary
choices that
decrease retained
earnings and
potentially increase
 future net income.
Overall, model
results suggest that
a more
comprehensive
understanding of
the specific
standards is
obtained that alters
market behaviour
and how the market
responds to positive
and negative equity
adjustments
Fuad Fuad, Agung To examine It analyzes the It indicates that Next study should
Juliarto, Puji Harto whether IFRS hypothesis of there is no have a larger sample
(2019) convergence accounting quality conclusive evidence of size for a long
process adds value changes in post-IFRS that all accounting term use of research.
to the accounting convergence by quality dimensions
quality dimensions, using the univariate including accruals
including accruals and multivariate quality, earnings
quality, earnings statistics. smoothing, timely
smoothing, timely Particularly, the loss recognition and
loss recognition and authors rely on earnings persistence
earnings panel data analyses increased in post-
persistence using industrial IFRS convergence.
companies’ data
from 2008 until
2014, comprising
3,861 firm-years
observations, in
Indonesia.
Aria Farah Mita, To examine the Method used is a The results show Although this
Sidharta Utama, indirect effect of continuous variable that the level of research provides
Fitriany, Etty R. the International to measure the level IFRS adoption has a detailed
Wulandari Financial Reporting of IFRS adoption positive effect on measurements of
(2018) Standard (IFRS) which is measured the comparability of IFRS adoption, this
adoption in at the country level. financial statements. study only looks at
increasing the This study includes The level of IFRS three general items
foreign investors’ countries that do adoption indirectly of difference in
ownership through not fully adopt the increases the foreign adopting the IFRS.
the improvement of IFRS, partially investors’ ownership “Differences in text”
comparability of adopt, make some through the used in this research
financial statements delays in adoption comparability of have not quantified
or some financial statements. detailed differences
modifications to These results are for each of the
IFRS. consistent with adopted standards.
proponents for IFRS Therefore, future
adoption which research could use a
argue that the more in-depth
adoption improves measurement of the
 the comparability of IFRS adoption level
financial statements that considers
that in turn attracts differences or
greater cross-border exceptions of
investment. accounting
treatment.
Daniel Zeghal, To analyse It is conducted on a The results of the Future researchers
Zouhour Lamar mandatory IFRS sample of 15 empirical study could conduct
(2016) adoption’s impact European countries, confirm a significant similar analyses in
on accounting observed from the reduction of the context of other
conservatism year 2000 to 2010. It accounting countries or groups
analyses both conservatism in the of countries that
conditional and IFRS adoption have adopted IFRS.
unconditional period. This This could be
conservatism, which reduction is affected especially relevant in
we measured, by the accounting the case of emergent
respectively, by model prevailing in countries and other
timely bad news a particular country. European countries
recognition as Moreover, the study that are not covered
compared to shows a reduction of by this study.
recognition of good the gap between the
news and two accounting
discretionary models in the post-
accruals. IFRS adoption
period.
Topic:

INDONESIAN MARKET REACTION TO THE TRANSITORY OF ADOPTING IFRS

Research Problem:

Identification of IFRS convergence losses is deemed necessary in order to determine the

effects arising from IFRS convergence. These effects can be either benefits or losses in
Indonesian market.