AGGRESSIVE REPORTING BEHAVIOUR UNDER THE IMPLEMENTATION OF INDONESIAN ACCOUNTING STANDARDS

Agus Fredy Maradona

Abstract


Abstrak: Perilaku Pelaporan Agresif dalam Penerapan Standar Akuntansi Keuangan Indonesia. Penelitian ini bertujuan untuk menguji pengaruh ciri pribadi dan karateristik tugas terhadap perilaku agresif akuntan dalam menerapkan standar akuntansi keuangan. Penelitian ini menggunakan metode eksperimen dengan melibatkan 105 akuntan profesional sebagai partisipan. Hasil analisis menunjukkan bahwa perempuan-akuntan dan akuntan dengan karakter moral idealistik kuat, atau karakter relativistik lemah, memiliki kecenderungan lebih rendah untuk mengaplikasikan standar akuntansi secara agresif. Penelitian ini juga menemukan bahwa perilaku pelaporan akuntan cenderung lebih agresif ketika tingkat keseriusan masalah pelaporan keuangan yang dihadapi adalah rendah. Hasil penelitian ini memberi implikasi bagi penyusun standar akuntansi dan asosiasi profesi akuntansi dalam melaksanakan upaya mewujudkan praktik pelaporan keuangan berkualitas.

 

Abstract: Aggressive Reporting Behaviour under the Implementation of Indonesian Accounting Standards. This research tries to assess the impact of personal and task-related characteristics on aggressive reporting behaviour under the implementation of Indonesian accounting standards. The study employs an experimental method involving 105 professional accountants. The results show that female accountants and accountants with stronger idealistic, or weaker relativistic, moral personalities are less likely to apply accounting standards aggressively. The study further indicates that accountants’ reporting behaviour tend to be aggressive when the severity of the financial reporting problem is low. Overall, these results present implications to accounting standard setters and professional associations in their collective efforts in ensuring high-quality financial reporting.


Keywords


accounting standards; aggressive reporting; gender; moral personality; problem severity

References


Agoglia, C. P., Doupnik, T. S., & Tsakumis, G. T. (2011). Principles-based versus rules-based Accounting Standards: The Influence of Standard Precision and Audit Committee Strength on Financial Reporting Decisions. The Accounting Review, 86(3), 747–767. https://doi.org/10.2308/accr.00000045

Amaliyah, A. (2019). Apakah Accounting Fraud Disebabkan Kesalahan Individu atau Budaya Organisasi? Jurnal Akuntansi Multiparadigma, 10(3), 569-582. https://doi.org/10.21776/ub.jamal.2019.10.3.33

Arel, B., Beaudoin, C. A., & Cianci, A. M. (2012). The Impact of Ethical Leadership, the Internal Audit Function, and Moral Intensity on a Financial Reporting Decision. Journal of Business Ethics, 109(3), 351–366. https://doi.org/10.1007/s10551-011-1133-1

Benston, G. J., Bromwich, M., & Wagenhofer, A. (2006). Principles versus Rules-Based Accounting Standards: The FASB’s Standard Setting Strategy. Abacus, 42(2), 165–188. https://doi.org/10.1111/j.1468-4497.2006.00196.x

Berglund, N. R. (2018). Auditor Size and Going Concern Reporting. Auditing: A Journal of Practice & Theory, 37(2), 1–25. https://doi.org/10.2308/ajpt-51786

Bobek, D. D., Hageman, A. M., & Radtke, R. R. (2015). The Effects of Professional Role, Decision Context, and Gender on the Ethical Decision Making of Public Accounting Professionals. Behavioral Research in Accounting, 27(1), 55–78. https://doi.org/10.2308/bria-51090

Budisusetyo, S., & Subroto, B. (2012). “Teposliro” and “Semuci” Among Public Accountants: Do We Know, and do We Care? Jurnal Akuntansi Multiparadigma, 3(2), 210-218. https://doi.org/10.18202/jamal.2012.08.7156

Cameron, R. A., & O'Leary, C. (2015). Improving Ethical Attitudes or Simply Teaching Ethical Codes? The Reality of Accounting Ethics Education. Accounting Education, 24(4), 275-290, https://doi.org/10.1080/09639284.2015.1036893

Che, L., Langli, J. C., & Svanström, T. (2018). Education, Experience, and Audit Effort. Auditing: A Journal of Practice & Theory, 37(3), 91–115. https://doi.org/10.2308/ajpt-51896

Chen, F., Hou, Y., Richardson, G., & Ye, M. (2018). Auditor Experience and the Timeliness of Litigation Loss Contingency Disclosures. Contemporary Accounting Research, 35(2), 956–979. https://doi.org/10.1111/1911-3846.12398

Cieslewicz, J. K. (2014). Relationships between National Economic Culture, Institutions, and Accounting: Implications for IFRS. Critical Perspectives on Accounting, 25(6), 511-528. https://doi.org/10.1016/j.cpa.2013.03.006

Cohen, J. R., Krishnamoorthy, G., Peytcheva, M., & Wright, A. M. (2013). How Does the Strength of the Financial Regulatory Regime Influence Auditors’ Judgments to Constrain Aggressive Reporting in a Principles-Based versus Rules-Based Accounting Environment? Accounting Horizons, 27(3), 579–601. https://doi.org/10.2308/accr-50982

Collins, D. L., Pasewark, W. R., & Riley, M. E. (2012). Financial Reporting Outcomes under Rules-Based and Principles-Based Accounting Standards. Accounting Horizons 26(4), 681–705. https://doi.org/10.2308/acch-50266

Dane, E., & Sonenshein, S. (2015). On the Role of Experience in Ethical Decision Making at Work: An Ethical Expertise Perspective. Organizational Psychology Review, 5(1), 74–96. https://doi.org/10.1177/2041386614543733

DeZoort, F. T., Holt, T. P., & Stanley, J. D. (2019). A Comparative Analysis of Investor and Auditor Materiality Judgments. AUDITING: A Journal of Practice & Theory, 38(3), 149-166. https://doi.org/10.2308/ajpt-52318

Dhandra, T. K., & Park, H. J. (2018). Mindfulness and Gender Differences in Ethical Beliefs. Social Responsibility Journal, 14(2), 274–286. https://doi.org/10.1108/SRJ-05-2016-0067

Eweje, G., & Brunton, M. (2010). Ethical Perceptions of Business Students in a New Zealand University: Do Gender, Age and Work Experience Matter? Business Ethics, 19(1), 95–111. https://doi.org/10.1111/j.1467-8608.2009.01581.x

Forsyth, D. R. (1980). A Taxonomy of Ethical Ideologies. Journal of Personality and Social Psychology, 39(1), 175–184. https://doi.org/https://doi.org/10.1037/0022-3514.39.1.175175

Giner, B., & Pardo, F. (2015). How Ethical are Managers’ Goodwill Impairment Decisions in Spanish-Listed Firms? Journal of Business Ethics, 132(1), 21–40. https://doi.org/10.1007/s10551-014-2303-8

Heinz, P., Patel, C., & Hellmann, A. (2013). Some Theoretical and Methodological Suggestions for Studies Examining Accountants’ Professional Judgments and Earnings Management. Advances in Accounting, 29(2), 299–311. https://doi.org/10.1016/j.adiac.2013.09.002

Herda, D. N., & Martin, K. A. (2016). The Effects of Auditor Experience and Professional Commitment on Acceptance of Underreporting Time: A Moderated Mediation Analysis. Current Issues in Auditing, 10(2), 14–27. https://doi.org/10.2308/ciia-51479

Husser, J., Andre, J. M., & Lespinet-Najib, V. (2019). The Impact of Locus of Control, Moral Intensity, and the Microsocial Ethical Environment on Purchasing-Related Ethical Reasoning. Journal of Business Ethics, 154(1), 243–261. https://doi.org/10.1007/s10551-017-3446-1

Indriani, R., & Amalia, R. M. (2019). Efek Negatif Konservatisme terhadap Reaksi Pasar. Jurnal Akuntansi Multiparadigma, 10(2), 399-412. https://doi.org/10.18202/jamal.2019.08.10023

Ismail, S. (2014). Effect of Ethical Ideologies on Ethical Judgment of Future Accountants: Malaysian Evidence. Asian Review of Accounting, 22(2), 145–158. https://doi.org/10.1108/ARA-08-2013-0052

Ismail, S., & Rasheed, Z. (2019). Influence of Ethical Ideology and Emotional Intelligence on the Ethical Judgement of Future Accountants in Malaysia. Meditary Accountancy Research, 27(6), 805–822. https://doi.org/10.1108/MEDAR-04-2018-0326

Ismail, S., & Yuhanis, N. (2018). Determinants of Ethical Work Behaviour of Malaysian Public Sector Auditors. Asia-Pacific Journal of Business Administration, 10(1), 21–34. https://doi.org/10.1108/APJBA-07-2017-0068

Jamal, K., & Tan, H. T. (2010). Joint Effects of Principles-Based Versus Rules-Based Standards and Auditor Type in Constraining Financial Managers’ Aggressive Reporting. The Accounting Review, 85(4), 1325–1346. https://doi.org/10.2308/accr.2010.85.4.1325

Jones, C., Temouri, Y., & Cobham, A. (2018). Tax Haven Networks and the Role of the Big 4 Accountancy Firms. Journal of World Business, 53(2), 177–193. https://doi.org/10.1016/j.jwb.2017.10.004

Jones, T. M. (1991). Ethical Decision Making by Individuals in Organizations: An Issue-Contingent Model. Academy of Management Review, 16(2), 366–395. https://doi.org/10.5465/amr.1991.4278958

Krumpal, I. (2013). Determinants of Social Desirability Bias in Sensitive Surveys: A Literature Review. Quality and Quantity, 47(4), 2025–2047. https://doi.org/10.1007/s11135-011-9640-9

Kusumah, R., & Manurung, D. (2017). Pentingkah Good Corporate Governance bagi Audit Report Lag? Jurnal Akuntansi Multiparadigma, 8(1), 137-148. https://doi.org/10.18202/jamal.2017.04.7047

Liu, M. (2013). Effect of Guanxi and Ethical Orientations on Chinese Auditors’ Ethical Reasoning. Managerial Auditing Journal, 28(9), 815–837. https://doi.org/10.1108/MAJ-01-2013-0801

Lu, H. Y., & Wang, S. (2018). Does Lifting the Objective-Price Constraint in Revenue Recognition Increase the Value Relevance of Earnings and Revenue? Asian Review of Accounting, 26(4), 545-570. https://doi.org/10.1108/ARA-08-2017-0126

Mala, R., & Chand, P. (2015a). Confidence of Accountants in Applying International Financial Reporting Standards. Corporate Ownership and Control, 13(1), 56–65. https://doi.org/10.22495/cocv13i1p6

Mala, R., & Chand, P. (2015b). Judgment and Decision-Making Research in Auditing and Accounting: Future Research Implications of Person, Task, and Environment Perspective. Accounting Perspectives, 14(1), 1–50. https://doi.org/10.1111/1911-3838.12040

Mala, R., Chand, P., & Patel, C. (2018). Influence of Experience and Accountability on Information Use and Judgments of Accountants. Journal of International Accounting Research2, 17(3), 135–151. https://doi.org/10.2308/jiar-52191

Malagueño, R., Pillalamarri, S., Rezende, A. J., & Moraes, M. B. C. (2019). The Effects of Length of Service and Ethical Ideologies on Moral Development and Behavioral Intentions: A Study among Brazilian Public Sector Tax Auditors. Journal of Applied Accounting Research. https://doi.org/10.1108/JAAR-04-2019-0061

Maradona, A. F., & Chand, P. (2018). The Pathway of Transition to International Financial Reporting Standards (IFRS) in Developing Countries: Evidence from Indonesia. Journal of International Accounting, Auditing and Taxation, 30, 57–68. https://doi.org/10.1016/j.intaccaudtax.2017.12.005

Moroney, R., & Carey, P. (2011). Industry- versus Task-Based Experience and Auditor Performance. AUDITING: A Journal of Practice, 30(2), 1–18. https://doi.org/10.2308/ajpt-10060

Musbah, A., Cowton, C. J., & Tyfa, D. (2016). The Role of Individual Variables, Organizational Variables and Moral Intensity Dimensions in Libyan Management Accountants’ Ethical Decision Making. Journal of Business Ethics, 134(3), 335–358. https://doi.org/10.1007/s10551-014-2421-3

Oboh, C. S. (2019). Personal and Moral Intensity Determinants of Ethical Decision-Making: A Study of Accounting Professionals in Nigeria. Journal of Accounting in Emerging Economies, 9(1), 148–180. https://doi.org/10.1108/JAEE-04-2018-0035

Odar, M., Jerman, M., Jamnik, A., & Kavčič, S. (2017). Accountants’ Ethical Perceptions from Several Perspectives: Evidence from Slovenia. Economic Research, 30(1), 1785-1803. https://doi.org/10.1080/1331677X.2017.1392885

Pacter, P. (2017). Pocket Guide to IFRS Standards: The Global Financial Reporting Language. IFRS Foundation.

Patel, C., & Millanta, B. R. (2011). “Holier-than-Thou” Perception Bias among Professional accountants: A Cross-Cultural Study. Advances in Accounting, 27(2), 373–381. https://doi.org/10.1016/j.adiac.2011.08.010

Pierce, B., & Sweeney, B. (2010). The Relationship between Demographic Variables and Ethical Decision Making of Trainee Accountants. International Journal of Auditing, 14(1), 79–99. https://doi.org/10.1111/j.1099-1123.2009.00404.x

Ramirez, C., Stringfellow, L., & Maclean, M. (2015). Beyond Segments in Movement: A “Small” Agenda for Research in the Professions. Accounting, Auditing & Accountability Journal, 28(8), 1341-1372. https://doi.org/10.1108/AAAJ-01-2015-1946

Rokhmania, N. (2013). The Effect of Positive, Negative, Neutral Mood on Ethical Auditor Judgments. The Indonesian Accounting Review, 3(1), 89-98. https://doi.org/10.14414/tiar.v3i01.215

Tsahuridu, E. E. (2006). Anomie and Ethics at Work. Journal of Business Ethics, 69(2), 163–174. https://doi.org/10.1007/s10551-006-9074-9

Utami, I., Jori, A., & Hapsari, A. (2017). Sudikah Akuntan Mengungkap Aib Kecurangan? Jurnal Akuntansi Multiparadigma, 8(3), 458-469. https://doi.org/10.18202/jamal.2017.12.7066

Valentine, S. R., & Bateman, C. R. (2011). The Impact of Ethical Ideologies, Moral Intensity, and Social Context on Sales-Based Ethical Reasoning. Journal of Business Ethics, 102(1), 155–168. https://doi.org/10.1007/s10551-011-0807-z

Valentine, S. R., & Hollingworth, D. (2012). Moral Intensity, Issue Importance, and Ethical Reasoning in Operations Situations. Journal of Business Ethics, 108(4), 509–523. https://doi.org/10.1007/s10551-011-1107-3

Wadeson, D., & Ciccotosto, S. (2013), Succession Planning in Small Accounting Practices in Regional Far North Queensland. Australian Accounting Review, 23(2), 177-188. https://doi.org/10.1111/j.1835-2561.2012.00189.x

Wang, X., Wang, Y., Yu, L., Zhao, Y., & Zhang, Z. (2015). Engagement Audit Partner Experience and Audit Quality. China Journal of Accounting Studies, 3(3), 230–253. https://doi.org/10.1080/21697213.2015.1055776

Whiting, R. H., Gammie, E., & Herbohn, K. (2015). Women and the Prospects for Partnership in Professional Accountancy Firms. Accounting & Finance, 55(2), 575-605. https://doi.org/10.1111/acfi.12066

Yang, J., Ji, H., & O’Leary, C. (2017). Group Ethical Decision Making Process in Chinese Business: Analysis From Social Decision Scheme and Cultural Perspectives. Ethics & Behavior, 27(3), 201-220. https://doi.org/10.1080/10508422.2016.1157690




DOI: http://dx.doi.org/10.21776/ub.jamal.2020.11.1.02

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.