Comparative Study of Financial Reporting Act: The Case Study of Indonesia

Abstract

Research aims: This study evaluates the Indonesian Financial Reporting Bill and provides recommendation to RUU PK RI.Design/Methodology/Approach: A comparative study was carried out by comparing the RUU PK RI with Financial Reporting Acts and other related statutory from the United States of America, the United Kingdom, and twenty-seven members of the Asian-Oceanian Standard-Setters Group (AOSSG).Research findings: From the total of 24 countries, 60 documents were found which were then manually analyzed for content and themes. Based on the results of the study: standard setting body, accountant certification, and practice monitoring program were proposed to be included in the RUU PK RI.Theoretical contribution/Originality: There are not many studies of Financial Reporting Act; therefore, this study seeks to contribute to the gap.Practitioner/Policy implication: The result of this study will become insight for regulators in charge of the Indonesian Financial Reporting Bill’s development in preparing its promulgation.Research limitation/Implication: The limitation of this research is it carries out a comparative study of the Indonesian Financial Reporting Bill with the selected countries’ Financial Reporting Acts and similar statutory.Keywords:  comparative study, evaluation case studies, financial reporting act, stakeholder theory.