Adam Zakaria

8/10/2019 Adam Zakaria

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2011 Cambridge Business & Economics Conference ISBN : 9780974211428

THE EARLY YEARS ADOPTION OF COST OR

REVALUATION MODEL FOR PROPERTY, PLANT AND

EQUIPMENT IN INDONESIA

ADAM ZAKARIA SE. Ak. MSi.

Accountin L!ctu"!" #t Accountin D!$#"t%!nt F#cu&t' o( Econo%ic)

St#t! Uni*!")it' o( +#k#"t#, Inon!)i#

M#i& #"!))- F#cu&t' o( Econo%ic), St#t! Uni*!")it' o( +#k#"t#

ui&in R, +#&#n. R#/#%#nun Muk#, +#k#"t# Ti%u", Inon!)i#

P0.- 123 34 5634336 F#7- 123 34 568239:

E;%#i& #"!))- #<!&i%#='#0oo.co%, ##%=(!un>.#c.i

mailto:[email protected]

mailto:[email protected]




THE EARLY YEARS ADOPTION OF COST OR REVALUATION MODEL

FOR PROPERTY, PLANT AND EQUIPMENT IN INDONESIA

Te !e"ised Indonesian #ccoun$ing S$andard for %roer$'( %)an$ and E*uimen$

+%S#, 1-. /ic is fu))' ado$ed from I#S 1- ro"ides o$ions for comanies $o

a)' cos$ or re"a)ua$ion mode) I$ /as effec$i"e)' sa)) a)ied for eriods

beginning or af$er anuar' 1( 2008 Te obec$i"es of $is researc are $o e3)ore

$e use of $ose me$ods and i$s effec$ $o financia) erformances a$a ga$ered

for 400 comanies )is$ed in Indonesia S$oc5 E3cange from 2008 $o 2009 Te

resu)$ so/s $a$ comanies refer using cos$ me$od for rac$icab)e( no$

significan$)' differen$ and cas f)o/ considera$ion ra$er $an re"a)ua$ion mode)

K!'/o")- I6!S( Cos$ or !e"a)ua$ion ode)( 6inancia) %erformance

une 2728( 2011Cambridge( ,

2




THE EARLY YEARS ADOPTION OF COST OR REVALUATION MODEL FOR

PROPERTY, PLANT AND EQUIPMENT IN INDONESIA

4. Int"ouction

esi$e accoun$ing o)ic' di"ersi$' and deba$es o"er armonia$ion of g)oba)

accoun$ing s$andards( $e gro/$ of mu)$icoun$r' economic a))iances as encouraged $eir

members $o )essen differences for $e benefi$ of regiona) goa)s Euroean nion and #SE#N

are a)so concern abou$ $is ma$$er !efer $o Te Euroean Commission decision in 2000 and

!egu)a$ion 1-0-;2002 )is$ed comanies re*uired $o ub)is financia) s$a$emen$s using I6!S

from anuar' 1( 200< on/ards Curren$)'( around 1<0 coun$ries are a)'ing I6!S or

na$iona) accoun$ing s$andards com)' /i$ I6!S Te )e"e) of I6!S com)iance mig$ "ar'

in e"er' coun$ries bu$ con"ergence rogram is s$i)) /or5ing on Euroean nion re*uired a))

comanies )is$ed in Euroean S$oc5 E3cange $o a)' I6!S for conso)ida$ed financia)

reor$ing s$ar$ed in 200< #ccording $o $e officia) informa$ion for 200<( $ere /ere 8(000

comanies reared $eir financia) s$a$emen$s in $e firs$ 'ear of ado$ion +=uges( 2007.

oreo"er( in No"ember 2008 SEC resen$ed $e roadma indica$es $a$ SEC /i)) re*uire a))

S comanies $o use I6!S in 2014 +Scanner and S)a$er( 2008. bu$ fina) decision /ou)d be

made in 2011 regarding mo"ing $o I6!S +i)man( 2009.

Te roadma of I6!S com)iance in #SE#N coun$ries as been se$$)ed Indonesia

and a)a'sia /ou)d fu))' com)' $a$ s$andards in 2012 mean/i)e ano$er members mig$

s$ar$ differen$)' Some o)ic' recommenda$ions regarding financia) accoun$ing s's$em a"e

been addressed in ursuing #SE#N armonia$ion +Saudagaran and iga( 1998.: broad aims

of financia) accoun$ing( ins$i$u$iona) mecanism for acie"ing #SE#N armonia$ion( na$ure


>




of secific measuremen$ and disc)osure re*uiremen$s In si$e of differences in coman' )a/

re*uiremen$s( securi$ies mar5e$ regu)a$ions( accoun$ing s$andardsse$$ing rocedures and

accoun$ing s$andards con$en$( $e simi)ari$ies among #SE#N coun$ries are concern /i$ $e

ar$icia$ion of ri"a$e sec$or in accoun$ing s$andards se$$ing and enforcemen$ +!usse) and

iga( 199-.

Te armonia$ion s$andards $o I6!S is a)so sread $o ano$er #SI#N coun$r' suc

as aan( Cina( Iran( India( ,aa5s$an( %a5is$an( Bang)ades e$c eba$es o"er s$andard

se$$ing rocess norma))' occurred during mee$ings and seminars I6!S is no$ on)' benefi$ for

i$s ad"an$ages $o $e coun$r' bu$ disad"an$ages mig$ faced esecia))' if cer$ain I6!S

s$andards is irre)e"an$ $o financia) s$a$emen$ users and $end $o offer more benefi$s a$ $e

e3enses of o$er ar$'

#)'ing cu)$ura) fac$ors for ins$ance a secrec' and )ac5 of $ransarenc' +?ra'(

1988.( gi"en Indonesia@s )o/er )e"e) of indi"idua)ism( rofessiona)ism and )arge o/er

dis$ance( i$s accoun$ing rofession )i5e)' $o ran5 ig)' in $erm of bo$ conser"a$ism and

secrec' Tese accoun$ing "a)ues /ou)d resu)$ in a )o/ )e"e) of $ransarenc' in financia)

reor$s Te gro/$ of Indonesian econom' is a)so e3ec$ed $o s$reng$en $e ro)e of $e

accoun$ing rofession in se$$ing and im)emen$ing financia) reor$ing s$andards S$ruc$ura)

issues in socie$'( inade*ua$e regu)a$or' and enforcemen$ mecanism( cron'ism as /e)) as

)anguage fac$ors mus$ be considered +%erera and Ba'doun( 2007. !esearc as been done

regarding de"e)omen$ of accoun$ing s$andards and disc)osure rac$ice $a$ a$$erned b'

cange in cu)$ura) norms Te associa$ion be$/een na$iona) cu)$ura) and accoun$ing "a)ues in

Indonesia /as conduc$ed re"ious)' +Sudar/an and 6ogar$'( 199-.


4




Te goa) of I#S 1- a)' for beginning or af$er anuar' 1( 200< is $o rescribe $e

accoun$ing $rea$men$ of $angib)e fi3ed asse$s( so $e users of financia) s$a$emen$ ma' 5no/

informa$ion abou$ $e in"es$men$ $a$ $e ins$i$u$ion as in i$s roer$' and e*uimen$ as /e))

as $e canges $a$ a"e occurred in $a$ in"es$men$ #ccoun$ing informa$ion is ref)ec$ed b'

i$s ins$rumen$s so $a$ can affec$ firm@s "a)ue 6air "a)ue informa$ion is "a)ue re)e"an$ for $e

users of financia) s$a$emen$ Terefore( measuring ins$rumen$s a$ fair "a)ue can assis$

in"es$ors for be$$er decision Indonesian #ccoun$ing S$andard Board re"ised 6inancia)

#ccoun$ing S$andard S$a$emen$ 1- +%S#,;?##%. re)a$ed $o %roer$' %)an$ and E*uimen$

+%%E. in 2007 and effec$i"e)' sa)) a)' for annua) eriods beginning or af$er anuar' 1(

2008 Ta$ s$andard as fu))' ado$ed I#S 1- for cos$ or re"a)ua$ion mode) Ta$ s$andard

as re)aced rior 6inancia) #ccoun$ing S$andard S$a$emen$ 1- +%S#,. /ic on)' a))o/ed

cos$ mode) for re)iabi)i$' considera$ion during eriods before 2008

Tis aer discusses $e im)emen$a$ion of re"ised %S#, 1- in $e ear)' 'ears of

ado$ion for a)) comanies )is$ed in Indonesia S$oc5 E3cange Since $is ne/ accoun$ing

s$andards is $o$a))' differen$ /i$ re"ious one( man' asec$s /ou)d be co"ered suc as : 1.

=o/ far does coman' s$ar$ $o im)emen$ $a$ ne/ s$andardA 2. a$ $e reasons bac5ed

$eir decision in coosing $a$ ne/ s$andardA >. a$ is $e obs$ac)e in a)'ing $a$ ne/

s$andardA

3. Lit!"#tu"! R!*i!/

3.4. Int!"n#tion#& Fin#nci#& R!$o"tin St#n#") ?IFRS@

In$erna$iona) 6edera$ion of #ccoun$an$ conduc$ed a sur"e' /ic s$a$ed $a$

con"ergence $o a sing)e se$ of in$erna$iona) accoun$ing s$andards is a 5e' $o economic


<




de"e)omen$ aori$' of resonden$s find com)iance /i$ I6!S is "er' imor$an$ +I6#C(

2007. $er researc found $a$ $e use of I6!S is e3ec$ed $o imro"e $e comarabi)i$' of

financia) s$a$emen$s( s$reng$en corora$e $ransarenc' and enance $e *ua)i$' of financia)

reor$ing +as5e e$ a)( 2007. /i)e con"ergence $o/ards I6!S reor$ing can faci)i$a$e cross

border in"es$men$ and $us $e in$egra$ion of cai$a) mar5e$s +Co"rig e$ a)( 2007.

6our rimar' benefi$s ou$)ined based on ad"oca$es of accoun$ing armonia$ion

+I#SC( 198>D #i$5en and Is)am( 1984D %ur"is e$ a)( 1991D IC?( 1992.: cos$ sa"ing accruing

$o mu)$ina$iona) comanies( enanced comreensi"eness and comarabi)i$' of cross

na$iona) financia) reor$s( /idesread dissemina$ion of ig *ua)i$' accoun$ing s$andards and

rac$ices( and ro"ision of )o/ cos$ financia) accoun$ing s$andards $o coun$ries /i$ )imi$ed

resources e"e)oing na$iona) s$andards $a$ armonie /i$ I6!S a)so ad"an$ages in $e

asec$s of cos$s reduc$ion in rearing financia) s$a$emen$s( $e e)imina$ion or reduc$ion of

se$u cos$s in de"e)oing na$iona) accoun$ing s$andards( $e o$en$ia) of raid na$iona)

imro"emen$ in ercei"ed *ua)i$' and s$a$us of financia) reor$s( increase in financia) mar5e$

efficienc' $roug $e ro"ision of more unders$andab)e( comarab)e and re)iab)e financia)

s$a$emen$s +#sraf and ?ani( 200<D Be)5aoui( 2004D Cand)er( 1992D Coi and u))er(

1984D ur'( 2000D Nobes and %ar5er( 200-.

n $e o$er and( na$iona) cu)$ure is $e )arges$ obs$ac)e indering $e armonia$ion

of accoun$ing s$andards !esearc as been done in $ir$'$ree na$iona) s$oc5 e3canges

found $a$ accoun$ing disc)osure is significan$)' affec$ed b' cu)$ura) dimensions of o/er

dis$ance( indi"idua)ism and uncer$ain$' +!iaiBe)5aoui( 199<. 6ur$ermore( na$iona)

accoun$ing s$andards is unsui$ed or irre)e"an$ $o na$iona) need $a$ )eads $o s$andards

o"er)oad +Coi and u))er( 1984.( e3ceed business re*uiremen$ in com)e3i$' +Be)5aoui(


-




2004. and $end $o faci)i$a$e )arge in$erna$iona) accoun$ing firms a$ $e e3ense of )oca) firms

in bo$ de"e)oing +Coi and u))er( 1984D !adeboug e$ a)( 200-. and de"e)oed coun$ries

+oson( 200-.

!o)e of cu)$ure cer$ain)' imac$s na$iona) s$andards Tis conc)usion can be dra/n

from re"ious researc Cu)$ura) "a)ues are associa$ed /i$ our di"ergence inde3 and ma$$er

e"en more $an )ega) origin in e3)aining di"ergences from I#S i$ regard $o absence

inde3( $ere is no significan$ re)a$ionsi ei$er cu)$ura) "a)ues or )ega) origin +ing e$ a)(

200<. #f$er $a$( in $e area of comarabi)i$' and con"ergence( $e obs$ac)e of comarabi)i$'

mig$ be genuine comarabi)i$' mean/i)e cu)$ura) is an obs$ac)e a$ a ig )e"e) of *ua)i$'

+eff( 2007. Economic mo$i"e is a)so a de$erminan$ in s$andardse$$ing Te associa$ion

be$/een )obb'ing osi$ions and bo$ $eir ome coun$r'@s $a3 and financia) accoun$ing

s$andards /as found !esonden$s oose cange in $e s$a$us *uo ar$icu)ar)' $ose canges

$a$ $e' ercei"e mig$ cause $em ad"erse economic conse*uences in $e fu$ure +Farson

and Bro/n( 2001. i)e rimari)' us$ifica$ions for $e increasing recogni$ion $o I6!S is

economicD $e o$er fac$ors suc as socia) and o)i$ica) are a)$erna$i"es e3)ana$ion for $e

origin and diffusion of I6!S +Cua and Ta')or( 2008.

#ccoun$ing s$andard se$$ing is a foca) oin$ for cri$ica) accoun$ing Te rocess as

o$en$ia) $o inf)ic$ )arge )osses and 'ie)d /indfa)) gains for $e ar$ician$s +6ogar$'( 1998.

Tus( $e accoun$ing rofession and )arge $ransna$iona) corora$ions refer accoun$ing o)ic'

$o be de$ermined according $o $e rocesses of se)fregu)a$ion T/o in$erre)a$ed remises:

g)oba)ia$ion imac$s on so"ereign$' of $e na$ion s$a$es and accoun$ing is im)ica$edD $o

manage $e g)oba) commons in"o)"es democra$iing organia$iona) re)a$ionsi and in"o)"es

/or5ing $o comba$ $e ad"erse imac$s of g)oba) cai$a)ism +Feman( 200<. Te ossibi)i$'


7




of come$i$ion as ser"ed us /e)) b' de"e)oing efficien$ frame/or5s in an' fie)ds

Come$i$i"e in$erac$ion among s$andardse$$er( business firm and in"es$ors across $e g)obe

/i)) )ead us $o be$$er accoun$ing rac$ices and s$andards and $o )o/er cos$ of cai$a) +Sunder(

2002.

Te raid congruence is a)so aen in ano$er #SI#N coun$r' Con$inued gro/$

and $e a$$rac$ion of foreign cai$a) $o domes$ic "en$ures /i)) deend on $ransarenc' of $e

financia) dea)ings Cina( as an emerging mar5e$ econom'( as a"e been successfu) in

issued four se$s of accoun$ing regu)a$ions +1992( 1998( 2001( 200-. and /as considered $o be

$e grea$er conformi$' /i$ I6!S +I#SB( 200-. Te significan$ imro"emen$ in com)iance(

consis$enc' and comarabi)i$' indices on $e 1999 and 2002 annua) reor$ of Cinese )is$ed

firms as ro"en $e con"ergence of Cinese ?##% /i$ I6!S +%eng e$ a)( 2008. India is

s$i)) mo"ing for/ard in )ine /i$ I6!S bu$ o)i$ica) and socia) imedimen$s need $o be $ac5ed

in order $o imro"ed comarabi)i$' for financia) s$a$emen$ users +%erumra) e$ a)( 2009.

ean/i)e( as an emerging coun$r'( ,aa5s$an ad )i$$)e coice bu$ $o roceed /i$ I6!S

and $a$ I6!S re)e"ance is )i5e)' $o increase as ,aa5 economic de"e)omen$ con$inues

Im)emen$a$ion of I6!S is ro"ing rob)ema$ic bu$ i$ $a5ing )ace s)o/)' +T'ra)) e$ a)(

2007. ,aa5s$an as acie"ed ou$s$anding success res$ruc$uring i$s econom' from cen$ra)

)anning $o mar5e$ based s's$em #do$ion of I6!S is rema$ure ac$ion b' $e o)ic'ma5ers

and is )i5e)' $o carr' )i$$)e benefi$ for economies in $e foreseeab)e fu$ure %o)ic'ma5ers

sou)d a more )anned and gradua$ed aroac $o ado$ing I6!S in emerging economies $o

meaningfu))' ado$ of I6!S and benefi$ from $e ado$ion e3ercise +=ossain and !aman(

2007.


8




Te o$er fac$s in Iran are $e ne/)' reorganied s$andards se$$ing board ma5e use of

$e ro"ided oor$uni$' $o se$ in$erna$iona))' armonied accoun$ing s$andards /i)e

ma5ing a))o/ance for )oca) socioeconomic en"ironmen$ oreo"er( go"ernmen$ ambi$ion

for s/if$ economic de"e)omen$ ersuading foreign and )oca) ri"a$e in"es$ors $ended $o

con$inue $e ressure on ig au$ori$ies $o begin $e $ird /a"e of ri"a$iing /ic

roduces more ca))enges for in$erna$iona) armonia$ion in accoun$ing s$andards se$$ing

+!ouda5i( 2007. In Ira*( accoun$ing s's$em mig$ be usefu) for ne/ Ira* is in$erna$iona)

accoun$ing s$andards I$ aears more sui$ab)e for $e ne/ mar5e$ based econom' )i5e Ira*

ra$er $an e3erimen$ing /i$ o$er coun$ries@ s$andards %re"ious e3osure $o #merican

and Bri$is accoun$ing ru)es in bo$ rac$ice and educa$ion /ou)d ease $e rocess of

ado$ing $e in$erna$iona) accoun$ing s$andards +#)Naar( 2008.

In order $o ensure *ua)i$' financia) reor$ing rac$ice in %a5is$an( i$ re*uires roer

moni$oring and enforcemen$ mecanism Te s$a$u$or' regu)a$ors mus$ a"e ade*ua$e o/er(

caaci$' and au$ori$' $a$ mus$ be indeenden$ of accoun$ing rofession in %a5is$an /i$ a

"ie/ $o s$reng$ening $e enforcemen$ mecanism and au$ori$' $o imose )ega) sanc$ions for

$e "ia)a$ors +=ossain and E)Sa)'( 1997. Te ins$i$u$e of Car$ered #ccoun$an$s of

Bang)ades /or5ing on $e ado$ion of I#S bu$ com)iance /i$ $e accoun$ing s$andards is

no$ )ega))' re*uired Te s$andardse$$ing rocess ado$ed b' IC#B is e"en$ua))' a c)osed

door rocess and in$eres$ed users of accoun$ing informa$ion do no$ a"e an' cance $o

ar$icia$e in $e s$andardse$$ing rocess +=ossain e$ a)( 1997.

!esearc re)a$ed com)iance /i$ I#S found $a$ $ere is a significan$ e3$en$ of non

com)iance( esecia))' in resec$ /i$ I#S disc)osures( and $a$ 5e' fac$ors associa$ed /i$

)e"e) of com)iance inc)uding )is$ing s$a$us( being audi$ed b' Big <G2 firms( $e $'e of


9




reference $o I#S and coun$r' of domici)e +S$ree$ and ?ra'( 2002. #no$er researc found

$a$ foreign o/nersi is a osi$i"e de$erminan$ of iger I6!S com)iance and $a$ iger

I6!S com)iance is osi$i"e)' re)a$ed $o sare $urno"er Tus grea$er foreign o/nersi and

imro"ing $e *ua)i$' of a domes$ic firm@s financia) s$a$emen$s fo))o/ing manda$or' I6!S

ado$ion ma' )o/er a firm@s cos$ of cai$a) +Bo"a( 2008.

3.3. A))!t) R!*#&u#tion

Te goa) of I#S 1- a)' for beginning or af$er anuar' 1( 200< is $o rescribe $e

accoun$ing $rea$men$ of $angib)e fi3ed asse$s( so $e users of financia) s$a$emen$ ma' 5no/

informa$ion abou$ $e in"es$men$ $a$ $e ins$i$u$ion as in i$s roer$' and e*uimen$ as /e))

as $e canges $a$ a"e occurred in $a$ in"es$men$ #ccoun$ing informa$ion is ref)ec$ed b'

i$s ins$rumen$s so $a$ can affec$ firm@s "a)ue 6air "a)ue informa$ion is "a)ue re)e"an$ for $e

users of financia) s$a$emen$ Terefore( measuring ins$rumen$s a$ fair "a)ue can assis$

in"es$ors for be$$er decision

Te cange of asse$s "a)ue can be caused b' genera) rice )e"e) of cange for

ins$ance $e magni$ude of S /ar and os$ /ar bu$ a)so b' o$er d'namic e)emen$s in $e

economic s's$em suc as cange in ub)ic $as$es or bu'ing abi$s Tis /i)) cause e3ansion

of sa)es in some indus$ries re)a$i"e $o o$ers Conse*uen$)'( $e "a)ue of )an$( maciner'(

)and( re$ai) ou$)e$ )oca$ions( e*uimen$ /i)) rise in suc indus$ries( dec)ine in o$ers a$a on

asse$ re"a)ua$ions comi)ed from S 272 )arge indus$ria) corora$ions from 192<19>4 Tis

fac$ /as based on $e c'c)ica) increase of /ri$eu in roseri$' eriods before S grea$

deression in 1929 and /ri$edo/n in deression eriods $en Sound rinci)es of asse$

ro"ide a basis for aro3ima$ions of curren$ "a)ue Ins$ead of difficu)$ies of rac$ica)


10




im)emen$a$ion( re"a)ua$ions of asse$s $a5e )ace in rac$ice +es$on( 19<>. Te need $o

dear$ from cos$ basis origina))' bac5ed b' a a)f cen$ur' e"en$s /ic is address $o S

econom' suc as or)d ar I( ear)' 20@s reco"er'( )a$e 20@s re"ersa) $rend( $roug ou$ >0@s

and $e 40@s again re"ersed $e c'c)e Cos$ or i$s e*ui"a)en$ as been $e $ime onored basis

for $e "a)ua$ion of fi3ed asse$s on $e ba)ance see$ bu$ re"a)ua$ion under cer$ain condi$ions

can a)so be denied +,emner( 19<2. Bo$ $e accoun$an$@s and economis$@s measure of "a)ue

and income are needed !e$ain origina) cos$ as a basis of accoun$abi)i$' and $o a"e a

mone$ar' measure of income based on cos$ offer fo))o/ing considera$ions: $a3 re$urn and

go"ernmen$ reor$( ub)ic unders$anding( managemen$ erformance measuremen$( basic for

adus$men$ $o ref)ec$ economic "a)ues and economic income n $e o$er and( $e

su)emen$ar' s$a$emen$s so/ing economic income and $e condi$ion of $e business as

e3ressed in curren$ do))ars are "er' usefu) for $e economis$ and $e businessman +Be))(

19<>.

easuring roer$'( )an$ and e*uimen$ in S# is s$ric$)' using is$orica) cos$ bu$

re"a)ua$ions $o fair "a)ue are acce$ab)e rac$ice under in$erna$iona) and na$iona) accoun$ing

s$andards suc as I6!S( ,( #us$ra)ia and Ne/ ea)and In 19>0s( SEC discouraged asse$

/ri$e us $o fair "a)ue for ub)ic offering regis$ra$ion SEC essen$ia))' remo"ed $e o$ion of

u/ard re"a)ua$ion of roer$'( )an$ and e*uimen$ in 1940s $roug $e enforcemen$ of

financia) s$a$emen$ informa$ion fi)ed /i$ SEC regis$ra$ion s$a$emen$s +=ermann e$ a)(

200-. SEC /as using i$s regis$ra$ion o/ers $o Hcensor@ financia) s$a$emen$s /ic referred

$o es$ima$es of curren$ "a)ues( regard)ess of e"idence used $o arri"e a$ $ose es$ima$es

+a)5er( 1992. Tis ban con$inued in 19<0s( disc)osure of fair "a)ues in $e foo$no$es $o

financia) s$a$emen$ /as e3$ended


11




#ssumed $e ,orea econom' in s$abi)i$'( $e %roer$' !e"a)ua$ion Fa/ of 19<8 +Fa/

No 4-8. /as enac$ed in anuar' 19<8 esi$e i$s comu)sor' and rice con$inued $o rise(

maori$' of $e business corora$ions and rac$ica))' a)) so)e rorie$orsis did no$ ado$

re"a)ua$ion rocedures Ten( b' $e $ime $e' began $o rea)ie $e ad"an$ages and necessi$'

of re"a)ua$ion( $e o)i$ica) si$ua$ion ad become com)ica$ed Te Fa/ 19-2 /as sim)er

$an $e 19<8 Fa/ since firms /ere gi"en coice of re"a)uing or no$ re"a)uing roer$ies

using genera) rice )e"e) inde3 +Fee( 19-<. uring and immedia$e)' af$er or)d ar II(

aan e3erienced in a /i)d inf)a$ion %rice inde3 increased fourfo)d from 194< $o 194- and

$ri)ed again in $e fo))o/ing 'ear Tis e3$raordinar' rise of rices raised man' economic

rob)ems eisei Singi5ai %)an /as re)eased and fi3ed asse$s and )and cou)d be re"a)ued as

of une >0( 1949 Ten( uon re*ues$ of $e Sureme Commander of $e #))ied %o/er(

recommenda$ions made b' #merican economis$s and $a3 secia)is$s $o aan inis$r' of

6inance #f$er economic reco"ered i$s roseri$'( ano$er s$es $a5en: $e !e"a)ua$ion Fa/

19<0( $e 19<1 amendmen$ and $e 19<> amendmen$( $e Fa/ 19<4 and 19<7 Te aanese

demons$ra$es successfu) e3eriences +a"idson and asuba( 19-0.

sing frame/or5 of *ua)i$a$i"e carac$eris$ics of accoun$ing informa$ion in S6#C

No 2 +6#SB( 1980.( academic researc as so/n $a$ fair "a)ue for roer$'( )an$ and

e*uimen$ are more re)e"an$ $o decision ma5ers for e3am)e in redic$ing s$oc5 rice( fu$ure

earning( di"idend o)ic' e$c 6air "a)ue measures for roer$'( )an$ and e*uimen$ are

suerior $o is$orica) cos$ based on redic$i"e "a)ue( feedbac5 "a)ue( $ime)iness( neu$ra)i$'(

reresen$a$ion fai$fu)ness( comarabi)i$' and consis$enc' Jerifiabi)i$' aears $o be so)e

*ua)i$a$i"e carac$eris$ics fa"oring is$orica) cos$ o"er fair "a)ue +=errmann e$ #)( 200-.

$er s$udies a"e found simi)ar)'( fair "a)ue disc)osures a"e incremen$a) e3)ana$or'


12




o/er +Bub)i$ e$ a)( 198<D urdoc( 198-D =a/ and Fus$gar$en( 1988. Con"erse)'( se"era)

s$udies resu)$ed differen$)' +Bea"er e$ a)( 1982D Bea"er and !'an( 198<D Bernard and !u)and(

1987.

In financia) indus$r'( re*uiring fair "a)ue as $e reor$ed measure ma' no$ imro"e

$e *ua)i$' for informa$ion o"er is$orica) cos$ measure of a)) ban5 o)ding comanies un)ess

aroria$e es$ima$ion me$ods ; guidance for $e mar5e$ ins$rumen$( $a$ are no$ $raded in

ac$i"e mar5e$( are used b' firm /i$ )ess sois$ica$ed informa$ion s's$em +,urama and

,im( 200>. ?erman ban5ers gran$ed significan$)' iger )oans $o comanies reor$ing

roer$'( )an and e*uimen$ a$ fair "a)ue( /i)e S ban5ers gran$ed significan$)' iger

)oans $o comanies reor$ing using is$orica) cos$ +Nico)s and Buerger( 2002. =is$orica)

cos$ figures domina$e curren$ and re)acemen$ cos$ disc)osures +Bea"er and Fandsman( 198>D

Bea"er e$ a)( 1982D Bea"er and !'an( 198<D Bernard and !u)and( 1987. Te o$er s$udies

found $a$ fair "a)ue disc)osures a"e incremen$a) e3)ana$or' o/er +Bub)i$ e$ a)( 198<D

=a/ and Fu$sgar$en( 1988.

era$iona)ising $e fair "a)ue for $e conce$ of accoun$ing and )ega) uroses

some$ime faces difficu)$' esecia))' in $e si$ua$ion /ere $e roer$' being "a)ued is

subec$ $o imerfec$ or incom)e$e mar5e$s Tis can resu)$ in uncer$ain$'( ambigui$' and

measuremen$ error in accoun$ing "a)ua$ion #ccoun$an$s and audi$ors can )oo5 $o $e "arious

)ega) decisions +cCa$ie( C)ifford and a))e$D !amsa'D SairD urdocD Turnbu)). for

guidance on o/ $e cour$s a"e dea)$ /i$ "arious "a)ua$ion issues +Be$$s and ines( 2004.

!es$ruc$uring coman' $roug asse$ re"a)ua$ions can as5 )oca) urisdic$ion for )o/er

roer$' $a3 "a)ua$ions in case $e roer$' is /or$ )ess "acan$ because i$ )ef$ em$' +in$(

2009.


1>




accoun$ b' non re"a)uing firms( asse$s are no$ of a $'e aroria$e $o re"a)ue ans/er /as

se)ec$ed b' mos$ C6s Te use of cai$a) rofi$ reser"e and asse$ rea)ia$ion reser"e sread

re)a$i"e)' simi)ar /ic is for cai$a) rofi$ on)'( rea)ied re"a)ua$ion sur)uses on)' e$c Tis

aer conc)uded $a$ boo5 "a)ues inc)uding asse$ re"a)ua$ion reser"es are more a)igned /i$

$e mar5e$ "a)ue of $e firm $an boo5 "a)ues e3c)uding asse$ re"a)ua$ions Tus( asse$

re"a)ua$ion reser"es as reor$ed under #us$ra)ian ?##% e) $o ro"ide a be$$er summar' of

$e curren$ s$a$e of $e firm +Eas$on e$ a)( 199>.

!esearc associa$ed asse$ re"a)ua$ions and fu$ure erformance resu)$ed in

significan$)' osi$i"e)' o"er one( $/o and $ree 'ears subse*uen$ $o $e re"a)ua$ion Con$ro)

$es$ for fu$ure cange is in erformance( ris5( gro/$ and sie ore findings are re"a)ua$ion

ba)ance is significan$)' osi$i"e)' associa$ed /i$ rice incremen$a) $o ne$ income and boo5

"a)ue of e*ui$' Curren$ 'ear u/ard re"a)ua$ions are significan$)' osi$i"e)' associa$ed /i$

re$urns +#bood' e$ #)( 1999. #no$er researc as been done regarding re"a)ua$ion amoun$

and sare rices and or re$urns +#mir e$ a)( 199>D Eas$on e$ #)( 199>D Bar$ and C)inc(

199-D Bar$ and C)inc( 1998.D and osi$i"e mar5e$ reac$ion $o u/ard re"a)ua$ion

announcemen$ +S$andis and ng( 1982D Sare and a)5er( 197<.

sing da$a from #us$ra)ian ub)ic comanies /ic announced u/ard asse$

re"a)ua$ions during 19-01970( i$ /as associa$ed /i$ subs$an$ia) u/ard mo"emen$s in

s$oc5 rices and genera))' sus$ained in $e os$announcemen$ mon$s 6ur$ermore( s$oc5

mar5e$ aears $o diges$ $is ne/ informa$ion *uic5)' in$o s$oc5 rices as $e adus$men$ /as

a)mos$ com)e$e a$ $e c)ose of $e announcemen$ mon$ #sse$s re"a)ued inc)uding Fand

and bui)ding /ic is more re"a)ued $an )an$ and e*uimen$ Tis researc found $a$

mar5e$ regards as announcemen$ of an asse$ re"a)ua$ion as informa$ion significance( $e


1<




mar5e$ aears $o absorb $e informa$ion con$en$ of asse$ re"a)ua$ions *uic5)' in$o securi$'

rices( and fina))'( $ere is )i$$)e e"idence $o suor$ $e "ie/ $a$ $e announcemen$ of asse$

re"a)ua$ions is associa$ed /i$ s's$ema$ic canges in $e "o)a$i)i$' of a s$oc5@s re$urn re)a$i"e

$o $e mar5e$ +Sare and a)5er( 197<. ue coman'@s asse$s is grea$)' in e3cess of figures

so/n on $e boo5( $e effec$ is e*ui$' of sareo)ders as been unders$a$ed and a more

correc$ of $e sares as no$ been disc)osed #s a conse*uence( coman' mus$ consider

issuing s$oc5 di"idends or bonus sares +Cambers( 19<8.

sing da$a of Bri$is comanies )is$ed in $e eriod 19-4197> $e e3amina$ion

resu)$ed in a osi$i"e u/ard mo"emen$ in $e cumu)a$i"e a"erage residua) around $e

announcemen$ da$e of asse$ re"a)ua$ion I$ a)so aears $a$ re"a)ua$ions associa$ed /i$

une3ec$ed osi$i"e re$urns /en $a5en b' $e cai$a) mar5e$ as a oin$er $o o$er fa"orab)e

signa)s from a coman' and $o increase fu$ure benefi$ of s$oc5o)ders #sse$s re"a)ua$ion

/ou)d be seen b' $e cai$a) mar5e$ in $e fo))o/ing circums$ances: $e coman' es$ima$es

$e resen$ "a)ue of asse$s as grea$er $an $eir reor$ed boo5 "a)ue( gi"en e3ec$a$ion of

fu$ure earnings suc as di"idendD reducing deb$;e*ui$' ra$io /ou)d raise o$en$ia) fur$er

deb$D re"a)ua$ion common)' fo))o/ed b' announcemen$ of di"idend a' ou$ ra$io( earnings

increases( increases in $e di"idend ra$e er sare n $e o$er and( re"a)ua$ions cou)d be

regarded unfa"orab)e in $ese circums$ances: u/ard re"a)ua$ion roduces an increase of ne$

boo5 asse$s and a dec)ine in $e ra$e of re$urnD re"a)ua$ion under$a5en as a defense agains$

$a5eo"er bids Te disc)osure of asse$s re"a)ua$ion is mos$)' announced on $e re)ease of

annua) reor$ $en fo))o/ed b' re)iminar' earnings and di"idend reor$ bu$ rare)' informed

in merger announcemen$ or cai$a) recons$ruc$ion +S$andis and ng( 1982.


1-




#us$ra)ian firms can base re"a)ua$ions on direc$or or indeenden$ araiser "a)ue

es$ima$es In mos$ cases( re"a)ued asse$s based on direc$or and indeenden$ araiser

"a)ua$ions are significan$)' osi$i"e)' associa$ed /i$ rice Bu$ $ere is a )i$$)e e"idence $o

indica$e $a$ direc$or and indeenden$based "a)ua$ions are "ie/ed differen$)'( sugges$ing

direc$or@s ri"a$e informa$ion enance "a)ue es$ima$es desi$e $eir o$en$ia) se)fin$eres$ed

financia) s$a$emen$s managemen$ incen$i"es +Bar$ and C)inc( 1998. Te dis$inc$ion

be$/een direc$or and indeenden$ "a)ua$ions is unc)ear and $e regression resu)$ of eac

sources a"e simi)ar e3)ana$or' o/er +Eas$on( 1998. uring $e)eone sur"e'( indica$ed

$a$ man' direc$ors@ "a)ua$ions /ere suor$ed b' indeenden$ /ic is $en for disc)osure

urose of ba)ance see$( indeenden$ "a)ua$ions re"ie/ed b' direc$or and $is regard as

direc$ors@ re"a)ua$ions +Eas$on e$ a)( 199>. Te o$er s$ud' found $a$ indeenden$

araisers are more )i5e)' $o be used for re"a)ua$ions of )and and bui)ding and direc$ors are

more )i5e)' for in"es$men$( )an$ and e*uimen$ and iden$ifiab)e in$angib)es Tis is as

e"idence of firms arnessing direc$ors@ 5no/)edge of asse$ secifici$ies 6irms /i$ )ess

indeenden$ boards are more )i5e)' $o use indeenden$ araisers as e"idence subs$i$u$abi)i$'

be$/een go"ernance mecanisms +Co$$er and !icardson( 2002.

sing a , sam)e o"er eriod of 19941998( researc as done for re"a)uers in

$iming issue !e"a)uers a"e significan$ iger indus$r' median deb$$o$o$a) asse$ ra$io(

)arger $o$a) sa)es and fi3ed asse$ in$ensi$' and are )ess )i5e)' $o be in a ig $ec or !&

in$ensi"e indus$r' !e"a)uers a)so a"e iger re$urn in $e 'ear before( 'ear and $e 'ear

af$er re"a)ua$ions 6indings s$a$ed $a$ a curren$ u/ard re"a)ua$ion is associa$ed /i$ as$

sare re$urn indica$e u/ard re"a)ua$ions are no$ en$ire)' $ime)' 6ur$ermore( in"es$iga$ion

finds re"a)uers are domina$ed b' firms /i$ bo$ a iger sare re$urn in $e as$ $/o 'ears


17




and iger indus$r' )e"erage indica$ing , firms de)a' $e recogni$ion of increased asse$

"a)ues un$i) $is good ne/s as been confirmed b' $eir suerior mar5e$ erformance( and

/en indus$r' )e"erage is ig +Ceng and Fin( 2009. , firms a)so de)a' $eir u/ard

asse$ re"a)ua$ions because $e' can reduce fu$ure rofi$( re$urn on $o$a) asse$ and e*ui$'

during economicreco"ering eriod +Fin and %easne))( 2000.

3.. Accountin St#n#" (o" P"o$!"t' P&#nt #n EBui$%!nt in Inon!)i#

Indonesian Ins$i$u$e of #ccoun$an$ +II#. es$ab)ised in ecember 2>( 19<7 #$ $a$

$ime( $e obec$i"es /ere $o suer"ise( guide accoun$ing rofession( $o acie"e iger

s$andard of accoun$ing educa$ion and iger accoun$ing ser"ice *ua)i$' Tese a)so concern

/i$ $e na$iona) de"e)omen$ obec$i"es /ic is inc)udes $e *ua)i$' of uman resource

Tus( rofessiona) come$ence of accoun$an$ a$ )as$ /ou)d be in )ine /i$ re"ious

s$a$emen$s II# "ision@s is $o be $e )eading rofessiona) organia$ion in de"e)oing

5no/)edge and accoun$ing( business managemen$ and ub)ic rac$ice /ic is e$ic( socia)

resonsibi)i$' and en"ironmen$a))' orien$ed in na$iona) and in$erna$iona) ersec$i"e

Te is$or' of accoun$ing rofession in Indonesia can be di"ided in$o $/o ases

+Tuana5o$$a( 2007.: 6irs$( %reIndeendence da' on #ugus$ 17( 194< $o $e end of Indonesian

firs$ residen$ era( Ir Soe5arno in 19-- In $is ase( Indonesia /as occuied b' u$c Tis

condi$ion ob"ious)' inf)uenced $e )a/ and accoun$ing infras$ruc$ures Toug is eroic

fig$ing( Indonesian ne/ go"ernmen$ s$rugg)ed in o"ercoming 'er inf)a$ion rob)em and

eo)e suffered from economic crisis un$i) $e end of Soe5arno era Second( ne/ Indonesian

econom' during Indonesian second residen$ era( Soear$o and fo))o/ed b' $e o$er

residen$ia) go"ernmen$ u $o no/ =uge cai$a) inf)o/s and foreign deb$s financed $is


18




Tab)e 1 u)$i Indus$r' a$a 2008

NO INDUSTRY CLASSIFICATION TOTAL MODEL

1 #nima) 6eed and =usbandr' 1 Cos$

2 ining 1 Cos$

> Cons$ruc$ions 1 Cos$4 6ood and Be"erages 1 Cos$

< e$a) 1 Cos$

- E)ec$ronic and ffice 2 Cos$

7 #u$omo$i"e > Cos$

8 %o$ograic 1 Cos$

9 Transor$a$ion - Cos$

10 Te)ecommunica$ion 2 Cos$

11 o)esa)e 7 Cos$

12 Ban5ing 17 Cos$

1> Credi$ #gencies 4 Cos$

14 Securi$ies < Cos$1< Insurance 2 Cos$

1- !ea) Es$a$e and %roer$' 1> Cos$

17 =o$e) and Tra"e) 4 Cos$

18 =o)ding and In"es$men$ 1 Cos$

19 $ers < Cos$

To$a) 77

Tab)e 2 u)$i Indus$r' a$a 2008

NO INDUSTRY CLASSIFICATION TOTAL MODEL

1 ining 2 Cos$

2 Cons$ruc$ion 2 Cos$

> 6ood and Be"erage 1 Cos$

4 e$a) 1 Cos$

< E)ec$ronic 1 Cos$

- #u$omo$i"e 2 Cos$

7 Te)ecommunica$ion 1 Cos$

8 o)esa)e 1 Cos$

9 Ban5ing > Cos$

10 Securi$ies 1 Cos$11 Insurance 1 Cos$

To$a) 1-

5. Di)cu))ion.


21




In $e ear)' 'ear ado$ion of %S#, 1-( 2008 and 2009( comanies cose cos$ mode)

ra$er $an re"a)ua$ion mode) an' differences in financia) reor$ and $a3a$ion urose a"e

discouraged comanies in a)'ing re"a)ua$ion mode) Tis fac$ is e3)ained b' fo))o/ing

reasons:

1. Comanies are s$i)) considering re"a)ua$ion mode) /ic is us$ offered in $erm of

ad"an$ages and disad"an$ages I$ is no$ rac$icab)e $o es$ima$e $e effec$ of comonen$

aroac and residua) "a)ue of asse$s oreo"er( $e ado$ion of ne/ s$andard as no$

resu)$ed in cange significan$)' for roer$'( )an$ and e*uimen$

2. Comanies a"e $o ro"ide e3$ra mone' for araiser ser"ice and 10 K $a3 )iab)e of

u/ard re"a)ua$ion of asse$s

>. Too man' i$ems of roer$'( )an$ and e*uimen$ can a)so be rob)ems for re"a)ua$ion

because fair "a)ue is no$ easi)' and re)iab)' a"ai)ab)e and robab)' no$ of a $'e

aroria$e $o re"a)ue

4. True and fair financia) s$a$emen$s uroses( and o$er mo$i"es i$ is no$ considered so far

and re)iabi)i$' is more focus ra$er $an re)e"an$ for *ua)i$a$i"e carac$eris$ic of

accoun$ing informa$ion

<. Comanies /o /an$ $o re"a)ua$e $eir asse$s mus$ a"e ermission from ?enera)

irec$or of Ta3 according $o 6inance inis$er !u)e No 79;%,0>;2008 /ic /as

re)eased sor$)' af$er %S#, 1- 2008 Te rocess i$se)f some$imes $a5es $ime )onger $an

e3ec$ed

-. 6inance inis$er !u)e No 79;%,0>;2008 s$a$e $a$ a)) $'es of asse$s inc)uding )and

mus$ be re"a)ua$ed( mean/i)e %S#, 1- a))o/ comanies $o re"a)ua$e on)' a grou of

asse$s Tis cause comanies mus$ reare 2 scenarios for asse$s re"a)ua$ion


22




7. 6inance inis$er !u)e No 79;%,0>;2008 offers comanies $o re"a)ua$e in e"er' <

'ears( bu$ refer $o %S#, 1- comanies ma' re"a)ua$e $eir asse$s e"er' 'ear as )ong as

$ere is a significan$ difference be$/een carr'ing cos$s and mar5e$ "a)ue Tis basic

difference rea))' bo$ers comanies /ic in$end $o re"a)ua$e $eir asse$s $oug $ime

difference can be se$$)ed $roug fisca) reconci)ia$ion

8. # 10 K $a3 mus$ be aid from $e increase of mar5e$ "a)ue in 12 mon$s /ereas

re"ious)'( 6inancia) inis$er ecree No 48-;,,0>;2002 a))o/ $a$ a'men$ in 2<

'ears ins$a))men$ Comanies /ic suffer cas f)o/ rob)em mus$ consider $e effec$ of

asse$ re"a)ua$ion decision

:. Conc&u)ion

In summar'( comanies so far s$i)) "ie/ $ere are difficu)$ies in a)'ing re"a)ua$ion

mode) for financia) accoun$ing and $a3a$ion urose i$ou$ considering $e mo$i"es and

effec$ of asse$ re"a)ua$ion( comanies )oo5 s$i)) refer cos$ me$od

2. Li%it#tion #n Su!)tion

6ur$er researc sou)d consider as5ing comanies for mo$i"es or reasons of no$

re"a)ua$e $eir asse$s $roug *ues$ionnaire as /e)) as using more sam)es and obser"a$ion

'ears Tis can ro"ide deeer ana)'sis and iger )e"e) of confidence using s$a$is$ica) $es$s

6. R!(!"!nc!)

#bood'( a"id( Bar$( ar' E and ,ani5( !on +1999. !e"a)ua$ions of 6i3ed #sse$ and

6u$ure %erformance: E"idence from , ourna) of #ccoun$ing and Economics( 2-:149

178


2>




#i$5en( and # Is)am 1984 ise))ing #rgumen$s #gains$ In$erna$iona) #ccoun$ing

S$andards In$erna$iona) ourna) of #ccoun$ing and Educa$ion !esearc( 8+2.:21>2

#)Naar( 6ouad , +2008. #)ica$ion of In$erna$iona) #ccoun$ing S$andards in Ira* #sian%acific Conference on In$erna$iona) #ccoun$ing Issues

#mir( E( =arris( TS( Jenu$i( E, +199>. # Comarison of S and NonS ?##% #ccoun$ing

easures sing 6orm 206 !econci)ia$ions ourna) of #ccoun$ing !esearc( 21:>20>7<#sraf( and ?ani +200<. #ccoun$ing e"e)omen$ in %a5is$an in #sian #ccoun$ing

=andboo5: ser@s ?uide $o $e #ccoun$ing En"ironmen$ in 1- coun$ries( edi$ed b'

Saro5 Saudagaran( Tomson In$erna$iona) Business: Singaore 72<7<2Bar$( E( and C)inc( ? +199-. In$erna$iona) #ccoun$ing ifferences and Teir !e)a$ion $o

Sare %rices: E"idence from ,( #us$ra)ian and Canadian 6irms Con$emorar'

#ccoun$ing !esearc( 1>:1><170

Bar$( E( and C)inc( ? +1998. !e"a)ued 6inancia)( Tangib)e and In$angib)e #sse$s:#ssocia$ions /i$ Sare %rices and Nonar5e$ Based Es$ima$es ourna) of #ccoun$ing

!esearc( >-:1992>>

Bea"er( =( ?riffin( %#( and Fandsman ! +198>. Te Incremen$a) Informa$ion Con$en$ of

!e)acemen$ Cos$ Earnings ourna) of #ccoun$ing and Economics( <:1<>9Bea"er( =( !'an( S? +198<. =o/ e)) S$a$emen$ No >> Earnings E3)ain S$oc5 !e$urnsA

6inancia) #na)'s$ ourna)( 1>:--71Be)5oui( # +2004. #ccoun$ing Teor'( <$ Ed Fondon: Tomson

Be))( #)ber$ F+19<>. 6i3ed #sse$ and Curren$ Cos$ Te #ccoun$ing !e"ie/( 29+1.:44<>

Bernard( J( and !u)and( ! +1987. Te Incremen$a) Informa$ion Con$en$ of =is$orica) Cos$ andCurren$ Cos$ Numbers: Time Series #na)'sis Te #ccoun$ing !e"ie/( -2:710722

Be$$s( ennifer and ines( ?raeme +2004. #)ica$ion of 6air Ja)ue Conce$: E"idence 6rom

#us$ra)ian Fega) ecisions( #us$ra)ian #ccoun$ing !e"ie/( 14+1.:->78

B)ac5( EF( Se))ers( ,6 and an)'( TS +1998. Earnings anagemen$ sing #sse$ Sa)es: #nIn$erna$iona) S$ud' of Coun$ries #))o/ing Non Curren$ #sse$ !e"a)ua$ion ourna) of

Business 6inance and #ccoun$ing( 2<+910.:12871>17

Bo"a( 6rancesco +2008. Te e$erminan$ and Conse*uences of =iger I6!S Com)iance6o))o/ing anda$or' I6!S #do$ion in Emerging ar5e$ #sian %acific Conference on

In$erna$iona) #ccoun$ing Issues

Bro/n( %( Ian =( and Fo( # +1992. 6i3ed #sse$ !e"a)ua$ion and anageria) Incen$i"es#bacus( 28+1.:>-<7

Bub)i$( B( 6rec5a( T( and c,eo/n( C+198<. ar5e$ #ssocia$ion and 6#SB S$a$emen$

>> isc)osures: # !ee3amina$ion ourna) of #ccoun$ing !esearc( 2>+Su).:12>

Cambers( ! +19<8. #sse$ !e"a)ua$ions and S$oc5 i"idends ourna) of #ccoun$anc'(10-:<<-8

Cand)er( !# +1992. Te in$erna$iona) armonia$ion of accoun$ing: In searc of inf)uence

In$erna$iona) ourna) of #ccoun$ing( 27+>.: 2222>>Ceng( CS #gnes and Fin( S$een +2009. en o Te' !e"a)ue Teir #sse$s /ardA

E"idence from $e , In$erna$iona) ourna) of #ccoun$ing and Informa$ion anagemen$(

17+2.:1--188Coi( 6 and ue))er( ? +1984. In$erna$iona) #ccoun$ing Ne/ erse': %ren$ice =a))

Cua( ai 6ong and Ta')or( S$een +2008. Te !ise and !ise of I6!S: #n E3amina$ion of

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Co$$er( u)ie and !icardson( Sco$$ +2002. !e)iabi)i$' of #sse$ !e"a)ua$ions: Te imac$ of

#raisers Indeendence !e"ie/ of #ccoun$ing S$udies( 4:4><4<7

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Co"rig( J( I e6ond and =ung +2007. =ome Bias( 6oreign u$ua) 6und =o)dings(

and $e Jo)un$ar' #do$ion of In$erna$iona) #ccoun$ing S$andards ourna) of #ccoun$ing!esearc( 4<( 41L70

Craig( !usse) and iga( ose)i$o ? +199-. 6inancia) !eor$ing !egu)a$ion in #SE#N:

6ea$ures and %rosec$s Te In$erna$iona) ourna) of #ccoun$ing( >+2.:2>92<9Cu))inan( C +1999. In$erna$iona) Trade and #ccoun$ing %o)ic' Coice: Teor' and Canadian

E"idence Te In$erna$iona) ourna) of #ccoun$ing( >4+4.:<97-07

as5e( =( F =ai)( C Feu( and Jerdi !S +2007. #do$ing a )abe): =e$erogenei$' in $e

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!esearc( >-:2><247

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6inancia) #ccoun$ing S$andards Board +1980. ua)i$a$i"e Carac$eris$ic of #ccoun$ing

Informa$ion S$a$emen$ of 6inancia) #ccoun$ing Conce$s No < Nor/a)5( Conn 6#SB

6inancia) inis$er !u)e No <9;200< !eub)ic of Indonesia +200<. #ccoun$ing S's$em andCen$ra) ?o"ernmen$ 6inancia) !eor$ing

6inancia) inis$er !u)e No 79;%,0>;2008 !eub)ic of Indonesia +2008. 6i3ed #sse$

!e"a)ua$ion for Ta3a$ion %urose6ogar$'( Timo$' +1998. #ccoun$ing S$andard Se$$ing: # Ca))enge for Cri$ica) #ccoun$ing

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S's$em In$erna$iona))'( #bacus( 24+1.:11<

?riffi$( I +1990. Crea$i"e #ccoun$ing Fondon: n/in %aerbac5s?o"ernmen$ !u)e 24;200< !eub)ic of Indonesia +200<. ?o"ernmen$ #ccoun$ing S$andards

No 7: 6i3ed #sse$

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=ossaim( oniru) #)am( Cooer( ,a$ie and #ndre/( ane +2007. Enforcemen$ and

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http://ssrn.com/abstract=979650

http://ssrn.com/abstract=979650




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In$erna$iona) #ccoun$ing S$andards Board +200-. Cina #ffirms Commi$men$ $o Con"ergence

of I6!S I#SB #nnouncemen$ and Seec

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In$erna$iona) 6edera$ion of #ccoun$an$s +I6#C. +2007. ne se$ of in$erna$iona) s$andards

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S$andards Commi$$ee: Te Case of Cons$ruc$ion Con$rac$s #d"ances in In$erna$iona)#ccoun$ing( 14:477>

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ourna) of Business 6inance and #ccoun$ing( 27+>4.:><9>94

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http://www.ifrsreporter.com/index.php?option=com_content&view=article&id=52:-execs-hail-mary-schapiro-for-folding-ifrs-roadmap&catid=36:sec&Itemid=53


http://www.ifac.org/globalsurvey






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#ccoun$ing !esearc( 1>:29>>10

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