THE IMPACT OF IMPLEMENTATION OF ISFAS 71 AND 73 ON THE FINANCIAL PERFORMANCE OF INDONESIAN LISTED COMPANIES

Dwi Fortuna, Karina and Saiful, Saiful and Fenny, Marietza (2022) THE IMPACT OF IMPLEMENTATION OF ISFAS 71 AND 73 ON THE FINANCIAL PERFORMANCE OF INDONESIAN LISTED COMPANIES. Undergraduated thesis, Universitas Bengkulu.

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Abstract

ISFAS 71 and 73 are new standards effective January 1, 2020. ISFAS 71 replaces ISFAS 55 Financial Instruments and ISFAS 73 replaces ISFAS 30 Lease. ISFAS 71 changes classification and measurement financial assets and liabilities, impairement, and headging accounting. ISFAS 71 fundamentally change the recording and reporting of assets, equity, and liability. In ISFAS 73, the lease classification is stricter, almost all leases that enter on the operating lease criteria on ISFAS 30 will go into financing leases on ISFAS 73. ISFAS 73 will fundamentally change the recording and reporting of leases in financial statement. The change in standards has an impact on the company's financial performance. The purpose of this study to examine the difference between financial performance of Indonesia listed companies before and after the implementation of ISFAS 71 and 73. The sample used in this study is a company listed on the main board of the Indonesia Stock Exchange (IDX) observation period 2019-2020. The data is accessed through www.idx.co.id and www.sahamok.com . The study used a comparative method that compared financial performance before and after implementing ISFAS 71 &73 in 140 companies. Analytical methods used in this study are descriptive statistics, normality test, and hypothesis tests. Data were analyzed using SPSS version 26 with Paired Sample T-test and Wilcoxon Signed Ranks Test. The results showed that ROE after implementation ISFAS 71 & 73 is lower than before, ROA after implementation ISFAS 73 is lower than before, LE after implementation ISFAS 71 & 73 is higher than before, LA after implementation ISFAS 71 is higher than before, and LA after implementation ISFAS 73 is the same as before. The impact of implementing ISFAS 71 and 73 depends on the sector the company operates in. This study showed that changes in ISFAS 55 to 71 and ISFAS 30 to 73 standards adversely impacted the company's financial performance, which means support normative accounting theory predictions. Every new rules must impact the values in the financial statements. The implications of this study suggest that the IFASB may consider the results of this study to be an evaluation to make better policies in the future. Limitations in this study are that many companies do not implement and disclose ISFAS 71 and 73, so the results of the study are not accurate because many companies cannot be researched. The information disclosed in the company's financial statements is minimal, causing researchers difficulty in performing statistical analysis. Then, transportation and logistic sector data are minimal, so it cannot be tested per sector in this sector. The researchers eliminate the transportation and logistic sector for tests per sector which results in tests per sector is not accurate. The advice is to expand the sample, not just to companies listed on the main board of the Indonesia Stock Exchange (IDX), can add on the development and acceleration board also so that the research results are more accurate so that they can compare all sectors.

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