The Problematic Implementation Of Financial Accounting Standards In Asean Countries: A Systematic Literature Review

Asyari; Khairul Saleh L.   Tobing; Syamsudin; Kumba  Digdowiseiso

doi:10.59889/ijembis.v3i2.248

Authors

Asyari National University, Jakarta
Khairul Saleh L. Tobing National University, Jakarta
Syamsudin National University, Jakarta
Kumba Digdowiseiso National University, Jakarta

DOI:

https://doi.org/10.59889/ijembis.v3i2.248

Keywords:

ASEAN, Challenges in IFRS implementation, International Financial Reporting Standards

Abstract

IFRS, or International Financial Reporting Standards, is a financial accounting standard that offers numerous benefits to countries that implement it. One group of countries that has been striving to adopt IFRS includes the member states of ASEAN. However, despite the significant potential of using IFRS as a financial accounting standard, many challenges need to be addressed by ASEAN member countries in implementing IFRS. In this research, a systematic literature review was employed to identify the factors that pose problems or constraints in the adoption of IFRS as a financial accounting standard in ASEAN member countries. Existing literature was used for data collection and analysis. The research found that, broadly, the challenges or issues faced by ASEAN countries include political instability, a lack of human resources with a deep understanding of IFRS financial accounting standards, differences in regulations, particularly in taxation, and a shortage of technological infrastructure

Downloads

Download data is not yet available.

References

Bharata, RW, Susilo, GFA, & Nugraheni, AP (2020). International Financial Reporting Standards (IFRS) and its Adoption Process in Indonesia. Darmajaya Business Journal, 6(2), 10–26.

Christian, N., Aw, F., Fiorentina, Alice, & Aufa, A. (2019). Brunei Darussalam Accounting Developments and Analysis of Shenanigans in Its Financial Reports. Scientific Journal of Accounting and Business, 6(1), 32–43.

Gusneli, G., Sudarmanto, E., & Devi, E.K. (2023). Challenges and Opportunities in Implementing the Latest International Accounting Standards (IFRS). West Science Journal of Accounting and Finance, 2(03), 205–212.

Hamzah, A. (2019). Library Research Methods. Malang: Archipelago Literacy.

Keokhounsy, S. (2018). Capital structure and earnings management of private enterprises: evidence from the transitional economy of Laos.

Keuangan, S.A. (2019). Indonesian Accountants Association. Salemba Four. Jakarta. Negara, GI and Dewi, RS.

Lay, S. (2019). Empirical assessment of International Financial Reporting Standards adoption in Cambodia [Thesis]. Lincoln University.

Nejad, M.Y., Ahmad, A., Rahim, R.A., & Salleh, F. (2020). Does IFRS drive information asymmetry reduction? Evidence from ASEAN-6 countries. Asian Journal of Accounting and Governance, 14(0).

Nguyen, HTT, Nguyen, HTT, & Nguyen, C. Van. (2023). Analysis of factors influencing the adoption of IFRS in an emerging economy. Heliyon, 9(6), e17331. https://doi.org/10.1016/j.heliyon.2023.e17331

Phoutangvong, B. (2020). The financial regulatory challenges of Lao state-owned commercial banks in joining ASEAN Economic Community - A management perspective [Thesis]. Unitec New Zealand.

Putra, TAPS, Tusholihah, M., Retnawati, K., & Maje, GIL (2019). Impact and Efforts to Implement IFRS on Financial Reporting for Companies in Indonesia. Fair Value: Scientific Journal of Accounting and Finance, 1(2), 284–298.

Santama, V. de F. (2018). Essay on IFRS and Investment [Thesis]. Universidad de Sao Paolo.

Song, X., & Trimble, M. (2022). The Historical and Current Status of Global IFRS Adoption: Obstacles and Opportunities for Researchers. The International Journal of Accounting, 57(02). https://doi.org/10.1142/S1094406022500019

Stokke, K., Vakulchuk, R., & Øverland, I. (2018). Myanmar: A political economic analysis.

Vendy, V., & Sucahyati, D. (2022). Issues and Challenges of Adoption of IFRS for SMEs in Malaysia. Archipelago Science and Technology Proceedings, 6–12. https://doi.org/10.11594/nstp.2022.2302

Yapa, P.W.S., Joshi, M., & Kraal, D. (2011). The Socio-Economic Impacts of the Adoption of IFRS: a comparative study between the ASEAN countries of Singapore, Malaysia and Indonesia. RMIT University, 1–26.