COMPARISONAL ANALYSIS OF BANKING FINANCIAL PERFORMANCE BEFORE AND AFTER ADOPTING IFRS

Achmad Daengs GS (University 45 Surabaya, Indonesia)
Enny Istanti (Bhayangkara University Surabaya, Indonesia)
Diana Zuhro (University of 45 Surabaya, Indonesia)
Retno Susanti (University of 45 Surabaya, Indonesia)
Ruhan Sanusi (Bhayangkara University Surabaya, Indonesia)
Sutini Sutini (University of 45 Surabaya, Indonesia)
Bramastyo Kusumonegor (Bhayangkara University Surabaya, Indonesia)

International Journal of Economics and Management Research
Vol. 1 No. 3 (2022): December: International Journal of Economics and Management Research

This research aims to analyze the comparison of financial performance of banks before and after the adoption of International Financial Reporting Standards (IFRS) in Indonesia. The type of data used is secondary data taken from the balance sheets of banks listed on the Indonesia Stock Exchange (IDX) for the period 2010-2013. The variables used are financial ratios with Capital Adequacy Ratio (CAR), Return on Assets (ROA), Return on Equity (ROE), Loan to Deposit Ratio (LDR) and Non Performing Loan (NPL) indicators. This study uses quantitative methods, data were analyzed with a paired t-test. The results show that the implementation of IFRS has no impact on the financial performance of banks, because in principle the implementation of IFRS is not directly aimed at improving performance.