Universal Journal of Accounting and Finance Vol. 9(3), pp. 347 - 351
DOI: 10.13189/ujaf.2021.090308
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Linking Institutional Environment to the IFRS and Accounting Quality: A Proposed Framework

Fuad ^*, Zulaikha , Agung Juliarto
Department of Accounting, Faculty of Economics and Business, Universitas Diponegoro, Indonesia

ABSTRACT

Debates on whether the new globally adopted accounting standard outperforms national generally accepted accounting principles have not yet reached the final conclusion. Prior researches were mixed and often yield to contradictory findings. Our study believes that there are numerous institutional backgrounds that contribute to these inconclusive findings. The main objective of this study is to propose a testable framework on the impact of implementation of International Financial Reporting Standards on accounting qualities. The proposed framework based on the assumption that accounting should be linked to its social, political influences and culture. In this regard, we proposed whether the positive effects of IFRS implementation to the increase of accounting qualities may also be enhanced (impaired) by the firms' national culture and corruption at the country level. This study should provide further research some preliminary arguments on how the accounting information quality is not affected by the high-quality accounting standards, per se. Rather, our study conveys worth-looking message that IFRS-accounting quality may also be influenced by those institutional environments. Hopefully, this may provide a way out of the intractable debate of prior research.

KEYWORDS
Accounting Quality, IFRS, Corruption, National Culture

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Fuad , Zulaikha , Agung Juliarto , "Linking Institutional Environment to the IFRS and Accounting Quality: A Proposed Framework," Universal Journal of Accounting and Finance, Vol. 9, No. 3, pp. 347 - 351, 2021. DOI: 10.13189/ujaf.2021.090308.

(b). APA Format:
Fuad , Zulaikha , Agung Juliarto (2021). Linking Institutional Environment to the IFRS and Accounting Quality: A Proposed Framework. Universal Journal of Accounting and Finance, 9(3), 347 - 351. DOI: 10.13189/ujaf.2021.090308.