COMPARATIVE ANALYSIS OF EARNINGS MANAGEMENT BEFORE AND AFTER IMPLEMENTATION OF IFRS 9 (Empirical Study of Banking Sector in Emerging Market)
This research investigates the impact of implementing IFRS 9 on earnings management practices in the Indonesian banking sector. Focusing on the period before and after the implementation of the new standards, this research uses data from 47 banking companies listed on the Indonesia Stock Exchange during the 2017-2022. The purposive sampling method was used for data collection. The research results show significant differences in earnings management practices before and after the implementation of IFRS 9. Banks use discretionary accruals, especially through allowances for impairment losses, to adjust their accounting practices to the new standard. These findings suggest that new accounting standards influence corporate financial behavior, with banks using earnings management strategies to mitigate their impact. In this article, the theoretical and practical implications of these findings are discussed in depth.
Keywords: Earnings Management, IFRS 9, Allowance for Impairment Losses; Banking search engine.
