Comparative Study of Financial Reporting Act: The Case Study of Indonesia

Michelle Claudia (Department of Accounting, Faculty of Economics and Business, Universitas Indonesia, West Java)
Lindawati Gani (Department of Accounting, Faculty of Economics and Business, Universitas Indonesia, West Java)
Rafika Yuniasih (Department of Accounting, Faculty of Economics and Business, Universitas Indonesia, West Java)

Journal of Accounting and Investment
Vol 22, No 2: May 2021

Research aims: This study evaluates the Indonesian Financial Reporting Bill (hereafter: Bill) and provides a recommendation to the Bill.Design/Methodology/Approach: A comparative study was carried out by comparing the Bill with Financial Reporting Acts and other related statutory from the United States of America, the United Kingdom, and twenty-seven members of the Asian-Oceanian Standard-Setters Group (AOSSG).Research findings: From the total of 24 countries, 60 documents were found, which were then manually analyzed for content and themes. Based on the study results: standard-setting board, accountant certification, and practice monitoring program were proposed to be included in the Bill.Theoretical contribution/Originality: There are few studies on the Financial Reporting Act; therefore, this study seeks to contribute to this gap.Practitioner/Policy implication: This study’s results provide insight for regulators and strengthen the accounting professions as preparers and auditors of financial statements and other related professions.Research limitation/Implication: The limitation of this research is to conduct a comparative study of the Indonesian Financial Reporting Bill with the selected countries’ Financial Reporting Acts and similar statutory.