KAJIAN TENTANG KONVERGENSI INTERNATIONAL FINANCIAL REPORTINGSTANDARD (IFRS) DI INDONESIA

Abstract

The aim and main target of the study is to know the advantages of IFRS convergence in Indonesia, the impact that is appeared, barrier that is faced, and the way to overcome. The approach that is used qualitative descriptive. Data that is used qualitative. While data sources that is used library literatures that is closed relation with the topic and relevant written document. The research result show that the benefits of IFRS convergence are: 1. to ease the understanding of financial reporting by using standard financial accounting that is known internationally (enhance comparability), 2. to increase global investment stream through transparancy, 3. to decrease capital budget by opening fund raising through capital market globally, 4. to create eficient financial reporting arrangement, and 5. to increase financial reporting quality. The appeared impact that is caused by IFRS convergence are; 1. mind stream changing from rule-based to principlebased, 2. international butgetting accses will be opened because financial reporting will be easier to communicate to global investors, 3. The relevance of financial reporting will increase because using more logical value, etc. The barrier that is faced during IFRS convergence are: 1. Accounting standard board that is lacked of human resource, 2. high budgetting to adopt IFRS. That impact can be overcome by preparing qualified human resources that have IFRS capability and developing a good integration system

Keywords

• Convergence
• international accounting standard