IFRS Convergence through PSAK 71: Constraining or Transforming Earnings Management?

Stevi Natasia Chandritike; Yusnaini Yusnaini

doi:10.31004/riggs.v5i1.7554

Authors

Stevi Natasia Chandritike Universitas Sriwijaya
Yusnaini Yusnaini Universitas Sriwijaya

DOI:

https://doi.org/10.31004/riggs.v5i1.7554

Keywords:

IFRS Convergence, Earnings Management, PSAK 71, IFRS 9

Abstract

The convergence of Financial Accounting Standards (SAK) with International Financial Reporting Standards (IFRS) in Indonesia, particularly through the implementation of PSAK 71, is intended to improve the quality, transparency, and reliability of financial reporting through the Expected Credit Loss (ECL) approach. This forward-looking model enhances the timeliness of credit loss recognition and provides more relevant and decision-useful information for stakeholders. However, as a principle-based standard, PSAK 71 introduces a high degree of managerial discretion in determining key estimation parameters, which may create significant opportunities for earnings management practices. This study aims to examine whether PSAK 71 effectively constrains earnings management or instead transforms its underlying mechanisms. The research employs a Systematic Literature Review (SLR) of 22 peer-reviewed articles published between 2022 and 2025. The findings reveal inconsistent empirical evidence across prior studies. While some studies indicate improved transparency and a reduction in accrual-based earnings management, the majority of findings suggest a shift toward more complex and less observable forms, including estimation-based adjustments and real earnings management. The subjectivity inherent in ECL components increases the difficulty of detecting manipulation. Furthermore, the effectiveness of PSAK 71 is strongly influenced by corporate governance, audit quality, and institutional conditions. This study concludes that PSAK 71 does not eliminate earnings management but instead reshapes its mechanisms within financial reporting practices.

Downloads

Download data is not yet available.

References

Amer, A. M. M., Azimli, A., & Adedokun, M. W. (2024). Can IFRS adoption mitigate earnings management in an emerging market? Heliyon, 10(19). https://doi.org/10.1016/j.heliyon.2024.e38226

Amer, A. M. M., Azimli, A., & Adedokun, M. W. (2025). Earnings Management and IFRS Adoption Influence on Corporate Sustainability Performance: The Moderating Roles of Institutional Ownership and Board Independence. Sustainability (Switzerland), 17(17). https://doi.org/10.3390/su17177981

Ananta, G., Chandritike, S. N., & Yusnaini, Y. (2026). PSAK 73 and Changes to the Structure of Financial Statements: Is Transparency Increasing or Just a Reclassification? Jurnal Ilmiah Ekonomi Dan Manajemen (JIEM), 4(3), 844–856. https://doi.org/10.61722/jiem.v4i3.9180

Argarinjani, R. (2023). Konvergensi IFRS Terhadap Manajemen Laba (Studi Konseptual). EKONOMIKA45: Jurnal Ilmiah Manajemen, Ekonomi Bisnis, Kewirausahaan, 10(2). https://doi.org/10.30640/ekonomika45.v10i2.878

Audika, B., & Budiwitjaksono, G. S. (2022). Expected Credit Loss Based on PSAK 71: A Systematic Literature Review. Proceedings of 5th International Conference of Economic, Business and Government Challenges, 1(1), 240–244. https://doi.org/https://doi.org/10.33005/ic-ebgc.v1i1.25

Aufa, W., Hidayah, R., & Oktavia, F. (2024). Determinant of Earnings Management Pre and Post PSAK 109 in Indonesian Banks. Jurnal Informatika Ekonomi Bisnis, 759–764. https://doi.org/10.37034/infeb.v6i4.993

Haq, Q. F. (2023). Earnings and Capital Management Through Loan Loss Provisions in Indonesian Banks After IFRS 9 Implementation. Jurnal Akuntansi Dan Keuangan Indonesia, 20(1), 66–86. https://doi.org/10.21002/jaki.2023.04

Husni, M., Apriliani, W. A., & Idayu, R. (2022). Analisis Penerapan PSAK 71 Terkait Cadangan Kerugian Penurunan Nilai (pada Perusahaan Sektor Perbankan BUMN yang Terdaftar di BEI). Jurnal Valuasi: Jurnal Ilmiah Ilmu Manajemen Dan Kewirausahaan. https://doi.org/10.46306/vls.v2i1.69

Irsyadillah, M. F., Yusnaini, Y., & Ferina, I. S. (2024). The Impact of Macroeconomic Factors and Financial Performance on Stock Prices: Evidence from Indonesia. Bulgarian Journal of International Economics and Politics, 4(2), 55–75. https://doi.org/10.37075/bjiep.2024.2.04

Jasman, J., & Aminatunnaza, A. (2023). The Quality of Banking Financial Reporting Information Before and After IFRS 9 Implementation. Jurnal ASET (Akuntansi Riset). https://doi.org/10.17509/jaset.v15i2

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X

Jumkhairiyah, Miqdad, M., & Ika Wahyuni, N. (2024). Dampak Adopsi IFRS Terhadap Manajemen Laba di Indonesia. Jurnal Cahaya Mandalika, 5(2). https://doi.org/10.36312/jcm.v5i2.2422

Khasanah, S. K., & Komalasari, A. (2022). Analisis Perbandingan Kualitas Laba Sebelum dan Sesudah Implementasi Psak 71 pada Perbankan yang Terdaftar Di Bursa Efek Indonesia. E-Journal Field of Economics, Business and Entrepreneurship, 1(4), 391–399. https://doi.org/10.23960/efebe.v1i4.54

Kristin, D., & Yandari, A. D. (2025). Intellectual Capital, Leverage, Competitive Advantage, Earnings Management Terhadap Implementasi Adopsi IFRS 9 di Perbankan. Reviu Akuntansi Dan Bisnis Indonesia, 9(3), 452–467. https://doi.org/10.18196/rabin.v9i3.27694

Lapian, I. A., Sucipto, T. N., & Arnita, V. (2025). The Effect of Implementing Financial Accounting Standards Statement No. 71 on Earnings Management and Financial Instruments in Banking Companies Listed on the IDX. Proceeding of the International Conference on Economics, Accounting, and Taxation, 2(2), 01–07. https://doi.org/10.61132/iceat.v2i2.131

Marsalino, N. G., & Septiyanti, R. (2024). Pengaruh Implementasi PSAK 71 Terhadap Manajemen Laba. Economics and Digital Business Review, 5, 543–549. https://doi.org/10.37531/ecotal.v5i1.1437

Maryati, S., Fitriani, D., & Yusnaini, Y. (2023). Financial Distress, Free Cash Flow, Employee Diff, and Earnings Management. Jurnal Akuntansi Bisnis, 21(2), 173–184. https://doi.org/10.24167/jab.v21i2.10863

Nanang, S. E., & Imelda, E. (2025). The Effect of IFRS Adoption on Real Earnings Management With The Moderating Role of Board Characteristics. International Journal of Application on Economics and Business, 3(2), 1061–1072. https://doi.org/10.24912/ijaeb.v3i2.1061-1072

Nurcahyono, N., & Harto, P. (2025). Impact of ifrs 9 applications and earnings management; The new expected loss models. Contaduria y Administracion, 71(1). https://doi.org/10.22201/fca.24488410e.2026.5664

Pranata, N. F. R., Aroyo, R., & Pratama, E. A. (2024). Systematic Literature Review: Impact Adopt IFRS Approach Earnings Management and Value Relevance. International Journal of Integrative Sciences, 3(3), 309–322. https://doi.org/10.55927/ijis.v3i3.7435

Ribeiro, C. W. L., Júnior, J. L. D. S., Pimentel, R. C., & Salotti, B. M. (2024). IFRS 9 adoption and its impacts on banks’ credit impairment: an international perspective. Enfoque: Reflexão Contábil, 43(3), 1–19. https://doi.org/10.4025/enfoque.v43i3.64183

Ricapito, F. P. (2024). The impact of IFRS 9 on credit risk and profitability in the European banking sector. Corporate Ownership and Control, 21(4), 41. https://doi.org/10.22495/cocv21i4art4

Rindhyanti, L. S., Damayanti, M., Winarto, T. A., & Yusnaini, Y. (2026). PSAK 74 Implementation and Conflict of Interest in the Digital Insurance Era. Journal of Artificial Intelligence and Digital Business (RIGGS), 5(1), 7459–7467. https://doi.org/10.31004/riggs.v5i1.7154

Rizky, M., Qodarina, N., & Firmansyah, A. (2022). Manajemen Laba Sebelum dan Setelah Penerapan PSAK 71 pada Perusahaan Subsektor Perbankan di Indonesia. Owner, 6(2), 1363–1372. https://doi.org/10.33395/owner.v6i2.706

Sinatra, J. A., Manik, V. A., & Firmansyah, A. (2022). Dampak Adopsi International Financial Reporting Standards (IFRS) di Pendekatan Manajemen Laba dan Relevansi Nilai. Jurnal Pajak Dan Keuangan Negara. https://doi.org/10.31092/jpkn.v3i2.1531

Ulfah, A., & Diyanty, V. (2024). Impact of IFRS 9 Implementation and Audit Committee Effectiveness on Earnings Management in The Indonesian Banking Sector. Proceeding of International Conference on Multidisciplinary Research for Sustainable Innovation, 1(1). https://doi.org/10.31098/icmrsi.v1i.788

Yusuf, M. F. M., Garusu, I. A., & Rauf, D. M. (2025). Konvergensi IFRS di Indonesia: Analisis Dampak terhadap Manajemen Laba dan Transparansi Laporan Keuangan