The Effect of IFRS Adoption on the Readability of Annual Reports: An Empirical Study of Indonesian Public Companies

Authors

  • Irfan Hidayatullah
  • Dyah Setyaningrum Department of Accounting Faculty of Economics and Business Universitas Indonesia

:

https://doi.org/10.9744/jak.21.2.49-57

Keywords:

Annual reports, disclosure, IFRS adoption, readability

Abstract

This study aims to determine the effect of IFRS adoption on the readability of annual reports readability in Indonesia. The sample of this study includes 52 non-financial firms within a four-year period, from 2010-2011 and 2013-2014, with 208-year observations. Hypothesis testing is conducted by multiple linear regression analysis. This study provides evidence that IFRS adoption has significant and negative relationship with disclosure readability in Indonesian public companies. Implication of this study is IFRS adoption requires more sophisticated and/or more competent users of financial statements, measured by higher requirements of years of education needed to comprehend the disclosures.

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Published

2019-11-04

How to Cite

Hidayatullah, I., & Setyaningrum, D. (2019). The Effect of IFRS Adoption on the Readability of Annual Reports: An Empirical Study of Indonesian Public Companies. Jurnal Akuntansi Dan Keuangan, 21(2), 49-57. https://doi.org/10.9744/jak.21.2.49-57

Issue

Vol. 21 No. 2 (2019): NOVEMBER 2019

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Articles

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