Financial and Non Financial Factors that Influence the Implementation of IFRS

Abstract

Benefits of IFRS adoption by Indonesia has increased credibility, usefulness and comparability of financial reporting . In fact, the adoption of IFRS, many obstacles. This research aims to determine the financial and non financial factors that affect the implementation of IFRS on 8 companies in Property and Real Estate companies listed in Indonesia Stock Exchange 2010-2013. Financial factors examined in this study are out finance (out debt and out equity), leverage (LEV), foreign revenue (FREV), and size (SZ) . Non financial factors are issue, power distance (PD), and size of public accountant firm(PA).Methods of observation in this study using descriptive statistics with quantitative methods. Sampling selection method used is purposive sampling, The analysis technique used is the technique of multiple regression using SPSS version 20 software.Based on the results of multiple regression test, results showed that partially out debt, out equity, size, and size of public accountant firm does not affect the implementation of the IFRS, while leverage, issue, foreign revenue, power distance affect the implementation of IFRS. Simultaneously variables out finance, leverage, issue, foreign revenue, size, size of public accountant firm and power distance affect the implementation of IFRS.