The purpose of this study was to obtain empirical evidence about the differences in the quality of financial reporting before and after International Financial Reporting Standards (IFRS) adoption in basic and chemical industry companies listed on the Indonesia Stock Exchange.
The sample in this research was basic and chemical industry companies listed in Indonesia Stock Exchange 2007-2010, two years before the adoption of IFRS and two years in the stage of adoption of IFRS by the total number sample was 192.
This study used quantitative research methods, multiple regression analysis to test the model attributes of quality of financial reporting. Meanwhile, differences in the quality of financial reporting before and after International Financial Reporting Standards (IFRS) adoption tested by using a comparative test, paired sample t-test.
The results of the study that were presented did not indicate differences of the quality of financial reporting as measured by earnings management. Based on the results of tests performed standard deviation values obtained from the equation of DACC amounted 0.2412570 for SAK GAAP and 0.2586949 for SAK IFRS with a significance value was 0.130 at the significance level (alpha) 0.05. Similarly, the results of testing the quality of financial reporting differences as measured by the relevance of values before and after the adoption of IFRS did not show any significant differences. Based on statistical tests, R2 from the equation of RET was 0.078 to SAK GAAP and 0,021 for SAK IFRS. The comparative test (T Test) showed a significance value 0.865 at the significance level (alpha) 0.05.
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