Overview

Original Research

IMPACT OF IFRS 7 IMPLEMENTATION COMPLIANCE IN NATIONAL BANKING ON CAPITAL MARKET TRUST IN INDONESIA

ARGO PUTRA PRIMA 1, VIOLA SYUKRINA E. JANROSL 2, and ISKANDAR MUDA 3.

Vol 17, No 06 ( 2022 )   |  DOI: 10.5281/zenodo.6655111   |   Author Affiliation: Universitas Putera Batam 1,2; Universitas Sumatera Utara, Medan, Indonesia 3.   |   Licensing: CC 4.0   |   Pg no: 400-408   |   To cite: ARGO PUTRA PRIMA, et al., (2022). IMPACT OF IFRS 7 IMPLEMENTATION COMPLIANCE IN NATIONAL BANKING ON CAPITAL MARKET TRUST IN INDONESIA. 17(06), 400–408. https://doi.org/10.5281/zenodo.6655111   |   Published on: 15-06-2022

Abstract

The aim of this paper is on the implementation of IFRS 7 Financial Instruments: Disclosure. This standard requires banks to make several disclosures about the significance of financial instruments for the financial position and financial performance of the entity concerned, and the nature and level of risk faced by the entity in relation to financial instruments, both in quantitative and qualitative terms. This research was conducted at the National Bank of the Indonesian Capital Market. The results of this study indicate that the adoption of IFRS by companies in the capital market has the effect of increasing the comparability and transparency of financial information. The application of strict accounting standards ensures that capital market participants have access to high quality information. Market analysts also benefit from the adoption of IFRS as they are the most important users of financial statements; this matter caused by increased relevance, transparency and comparability of accounting information.

Keywords

IFRS 7 Implementation Compliance, Capital Market Trust; JEL Classification Codes: D24, E22, G21.