Hamidah - KRA jember 2016 hamidah
KONFRENSI REGIONAL AKUNTANSI III 2016
JEMBER RAYA
The Hegemony of
International Organization on
IFRS Adoption in Indonesia:
Accounting Ecology
Perspective
The Hegemony of International
Organization on IFRS Adoption
in Indonesia: Accounting
Ecology Perspective
Hamidah
hamidah_unair@yahoo.com
RESEARCH BACKGROUND:
Although there have been more than
120 countries adopted IFRS,
phenomenon of uniform global
accounting standards is still a matter of
discussion and debate.
different view of single accounting
standard (IFRS) for all countries, which
have different needs, cultures and
backgrounds (see eg Perry and Andreas,
2006, Abeysekera, 2005, Soderstrom
and Sun, 2010).
IFRS developed in western (develop)
countries of course have a background
of social, political, economic and cultural
that is different from developing
(eastern) countries.
As a developing country, Indonesia
want to participate and support the
globalization of accounting in using
single accounting standard.
Proponen of IFRS assume that accounting is
ecological free. They assume that accounting in
cultural free, social political free, professional
free and organizational free. They believe that
one global standards can implemented
everywere.
From other perspectives I convinve that
accounting influenced the environment in which
it is developed.
Hopwood (1978) said that accounting society
should not separate accounting by the context in
which it operates. 30 years ago Belkaui remind
us that Accounting does not develop in a vacuum
but reflects the particular environment in which
it is developed (Belkaoui, 1985).
Financial Accounting Standards Board
(DSAK), Indonesia decided to adopt
IFRS. IFRS will be implemented effective
in 2012 for all entities that have
significant public accountability; entities
under the supervision of Bapepam-LK,
and state own enterprises (Wulandari,
2011).
RESEARCH QUESTION:
From the perspective of ecological
accounting why Indonesia adopts IFRS.
Who are the actors and whose interests
are behind the massive regulation.
ACCOUNTING ECOLOGY…
Ecology: The study of relationships between
living things (humans, animals, plants) with
its environment.
Accounting ecology: the study of
interrelationships between accounting
and its environment, which influence
and are influenced by accounting.
Accounting Ecology:
“A national accounting ecology is a
multidimensional system in which no one factor
occupies a predominant position. Such a
synthesis would emphasize the
interrelationships of the environmental factors
which influence and are influenced by
accounting and would focus on the importance
of perceptual as well as non-cultural factors
such as population and land area” (Gernon &
Wallace, 1995, p. 59)
RESEARCH SCAFFOLD
WHY??
IFRS
Accounting
ecology
Organizationa
l environment
Non
cultural
aspects
Societal
environme
nt
Cultural
aspects
Actor
environment
Accountin
g
environme
nt
Professional
environment
To uncover the reasons why Indonesia adopts IFRS.
Who are the actors and whose interests are behind
the massive regulation.
RESEARCH INFORMANTS:
Research informant is policy
makers of IFRS adoption in
Indonesia, which includes:
1. DSAK, Indonesia Accounting
Standard Board
2. DPN IAI, Board of Indonesia
Accounting Association
3. Bapepam-LK, Indonesia Capital
Market Watch
4. Ministry of Finance and
5. Ministry of SOEs.
ANALYSIS AND
DISCUSSION
Actor related ecology
“who is Man behind the gun IFRS
adoption in Indonesia”
Decision maker (actor) is not government but Board
of Indonesia accounting standards-KNPAI (HK)
Actor (HK) is Founding Father of Big 4 which
politically interact with IASB.
HK
is single actor which has power to decide where
Indonesia accounting standard will be taken.
Actor not just lobbying accounting standards setter, but
he is a decision maker. So he does not have barriers to
bring where accountiung standards directed.
Some strategies use by actor to smooth his desire to
move toward IFRS:
Seek legitimacy throught seminars, simposum and conference
embracing opponent
Contribute personal fund to finance move toward IFRS
Political related ecology:
IFRS ADOPTION &
INTERNATIONAL
ORGANIZATION
WHY IFRS?
Several transnational organizations has
resulted Indonesia trapped for adopting
IFRS.
This study shown that IFAC
(International Federation on
Accountant), IOSCO, G-20 and WB has
trapped Indonesia to adopt IFRS.
Each organization has ensnared
members, including Indonesia, to adopt
IFRS. They has done a variety of ways to
ensnare members to adopt IFRS.
Through SMO (Statement of Membership)
7 on the International Financial Reporting
Standards (IFRS), IFAC requires its
members to adopt IFRS.
As a member of IOSCO, Indonesia has an
obligation to cooperate in developing,
implementing and promoting international
standards, including the agreement on
the use of IFRS as the global accounting
standard. These obligations are set out in
a binding agreement to implement IOSCO
members.
Membership in the G-20 resulted in
Indonesia should be subject to the
agreement made organization. One
result of the G-20 meeting in Pittsburgh
is made an agreement stating that the
authority that oversees international
accounting rules should increase the
use of global accounting standards
(IFRS) in June 2011.
CONCLUSSION
This study reveals that the adoption of IFRS does
not driven by our accounting need BUT driven by
international interest.
In politics related ecology, Indonesia's membership
in several international organizations, IFAC, IOSCO,
and the G-20 have resulted in Indonesia approved
the use of global accounting standards.
International organization is a public sector that
affects principals in preparing the IASB standards.
KAP Big Four is an influential member of the IFAC.
Through its representation in the Board of Trustees,
KAP Big Four is also the private sector affecting the
IASB.
In actors related ecology, key actors IFRS adoption
in Indonesia is a founding father of one of KAP Big
Four that operate in Indonesia.
THANK YOU….
TERIMA KASIH
IKATAN AKUNTAN INDONESIA
KOMPARTEMEN AKUNTAN
PENDIDIK
Wilayah Jawa Timur
Grha IAI Jatim
Jl. Krukah Utara No. 64 - Surabaya 60245
Jawa Timur
website: www.iaijawatimur.com
email: iai.jawatimur@yahoo.com
Tel (031) 5021125; Fax (031) 5034633
IAI Wilayah Jawa Timur
22
JEMBER RAYA
The Hegemony of
International Organization on
IFRS Adoption in Indonesia:
Accounting Ecology
Perspective
The Hegemony of International
Organization on IFRS Adoption
in Indonesia: Accounting
Ecology Perspective
Hamidah
hamidah_unair@yahoo.com
RESEARCH BACKGROUND:
Although there have been more than
120 countries adopted IFRS,
phenomenon of uniform global
accounting standards is still a matter of
discussion and debate.
different view of single accounting
standard (IFRS) for all countries, which
have different needs, cultures and
backgrounds (see eg Perry and Andreas,
2006, Abeysekera, 2005, Soderstrom
and Sun, 2010).
IFRS developed in western (develop)
countries of course have a background
of social, political, economic and cultural
that is different from developing
(eastern) countries.
As a developing country, Indonesia
want to participate and support the
globalization of accounting in using
single accounting standard.
Proponen of IFRS assume that accounting is
ecological free. They assume that accounting in
cultural free, social political free, professional
free and organizational free. They believe that
one global standards can implemented
everywere.
From other perspectives I convinve that
accounting influenced the environment in which
it is developed.
Hopwood (1978) said that accounting society
should not separate accounting by the context in
which it operates. 30 years ago Belkaui remind
us that Accounting does not develop in a vacuum
but reflects the particular environment in which
it is developed (Belkaoui, 1985).
Financial Accounting Standards Board
(DSAK), Indonesia decided to adopt
IFRS. IFRS will be implemented effective
in 2012 for all entities that have
significant public accountability; entities
under the supervision of Bapepam-LK,
and state own enterprises (Wulandari,
2011).
RESEARCH QUESTION:
From the perspective of ecological
accounting why Indonesia adopts IFRS.
Who are the actors and whose interests
are behind the massive regulation.
ACCOUNTING ECOLOGY…
Ecology: The study of relationships between
living things (humans, animals, plants) with
its environment.
Accounting ecology: the study of
interrelationships between accounting
and its environment, which influence
and are influenced by accounting.
Accounting Ecology:
“A national accounting ecology is a
multidimensional system in which no one factor
occupies a predominant position. Such a
synthesis would emphasize the
interrelationships of the environmental factors
which influence and are influenced by
accounting and would focus on the importance
of perceptual as well as non-cultural factors
such as population and land area” (Gernon &
Wallace, 1995, p. 59)
RESEARCH SCAFFOLD
WHY??
IFRS
Accounting
ecology
Organizationa
l environment
Non
cultural
aspects
Societal
environme
nt
Cultural
aspects
Actor
environment
Accountin
g
environme
nt
Professional
environment
To uncover the reasons why Indonesia adopts IFRS.
Who are the actors and whose interests are behind
the massive regulation.
RESEARCH INFORMANTS:
Research informant is policy
makers of IFRS adoption in
Indonesia, which includes:
1. DSAK, Indonesia Accounting
Standard Board
2. DPN IAI, Board of Indonesia
Accounting Association
3. Bapepam-LK, Indonesia Capital
Market Watch
4. Ministry of Finance and
5. Ministry of SOEs.
ANALYSIS AND
DISCUSSION
Actor related ecology
“who is Man behind the gun IFRS
adoption in Indonesia”
Decision maker (actor) is not government but Board
of Indonesia accounting standards-KNPAI (HK)
Actor (HK) is Founding Father of Big 4 which
politically interact with IASB.
HK
is single actor which has power to decide where
Indonesia accounting standard will be taken.
Actor not just lobbying accounting standards setter, but
he is a decision maker. So he does not have barriers to
bring where accountiung standards directed.
Some strategies use by actor to smooth his desire to
move toward IFRS:
Seek legitimacy throught seminars, simposum and conference
embracing opponent
Contribute personal fund to finance move toward IFRS
Political related ecology:
IFRS ADOPTION &
INTERNATIONAL
ORGANIZATION
WHY IFRS?
Several transnational organizations has
resulted Indonesia trapped for adopting
IFRS.
This study shown that IFAC
(International Federation on
Accountant), IOSCO, G-20 and WB has
trapped Indonesia to adopt IFRS.
Each organization has ensnared
members, including Indonesia, to adopt
IFRS. They has done a variety of ways to
ensnare members to adopt IFRS.
Through SMO (Statement of Membership)
7 on the International Financial Reporting
Standards (IFRS), IFAC requires its
members to adopt IFRS.
As a member of IOSCO, Indonesia has an
obligation to cooperate in developing,
implementing and promoting international
standards, including the agreement on
the use of IFRS as the global accounting
standard. These obligations are set out in
a binding agreement to implement IOSCO
members.
Membership in the G-20 resulted in
Indonesia should be subject to the
agreement made organization. One
result of the G-20 meeting in Pittsburgh
is made an agreement stating that the
authority that oversees international
accounting rules should increase the
use of global accounting standards
(IFRS) in June 2011.
CONCLUSSION
This study reveals that the adoption of IFRS does
not driven by our accounting need BUT driven by
international interest.
In politics related ecology, Indonesia's membership
in several international organizations, IFAC, IOSCO,
and the G-20 have resulted in Indonesia approved
the use of global accounting standards.
International organization is a public sector that
affects principals in preparing the IASB standards.
KAP Big Four is an influential member of the IFAC.
Through its representation in the Board of Trustees,
KAP Big Four is also the private sector affecting the
IASB.
In actors related ecology, key actors IFRS adoption
in Indonesia is a founding father of one of KAP Big
Four that operate in Indonesia.
THANK YOU….
TERIMA KASIH
IKATAN AKUNTAN INDONESIA
KOMPARTEMEN AKUNTAN
PENDIDIK
Wilayah Jawa Timur
Grha IAI Jatim
Jl. Krukah Utara No. 64 - Surabaya 60245
Jawa Timur
website: www.iaijawatimur.com
email: iai.jawatimur@yahoo.com
Tel (031) 5021125; Fax (031) 5034633
IAI Wilayah Jawa Timur
22