Abstract:
The issue of the IFRS adoption as a standard that can improve the quality of accounting and lead to a decrease in earnings management. A prior study found that there was no decrease in earning management after adopting IFRS. Therefore, this research intends to examine the of IFRS adoption towards earnings management that is assessed by measure of income smoothing, diversification of Accruals. This research involves 105 data observation from 21 companies manufacturing consumer goods listed in Indonesia Stock Exchange from the period of 2011-2012 and 2016-2018. The data processes using Eviews 9. The research result, the adoption IFRS indicates the positive and not to have significant effect on earnings management. The other variable control size, leverage, growth, and ROE do not influence behavior manager in earning management practically. Based on this research concluded that the adoption of IFRS has not fully guaranteed a decrease in earnings management yet.
