The Influence of Convergence IFRS to Accrual Earnings Management and Real Earnings Management

Abstract

This study aims to provide empirical evidence on convergence of IFRS and the effect to accrual
earnings management and real earnings management. This study used mining firm data which is listing on
Indonesia Stock Exchange in period 2008-2011 and period 2014-2017 and there are 14 firm used as sample.
This study used secondary data. Period 2008-2011 financial statement use to test descriptive statistic at the
before stage convergence of IFRS. Period 2014-2017 financial statement used to test descriptive statistic at
the after stage convergence of IFRS. The technique of data analysis in this study using simple linear
regression analysis. The result of this study find empirical evidence that convergence of IFRS has influence
to accrual earnings management through proxy as discretionary accrual. This funding confirmation the result
of descriptive statistic that accrual earnings management stage descends at the after stage convergence of
IFRS compared to before stage convergence of IFRS. Convergence of IFRS doesn’t have influence to real
earnings management through proxy abnormal operation cash flow, after stage convergence of IFRS and
also at before stage convergence of IFRS.