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

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.