The Localised Accounting Environment in the Implementation of Fair Value Accounting in Indonesia

Nugraheni, Bernadia Linggar Yekti and Cummins, Lorne and Kilgore, Alan (2022) The Localised Accounting Environment in the Implementation of Fair Value Accounting in Indonesia. Qualitative Research in Accounting and Management, 19 (4). pp. 416-460. ISSN 1176-6093

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Abstract

Purpose – This case study aims to investigate the role of actors in the implementation of fair value standards in an emerging country, Indonesia. Design/methodology/approach – This study uses semi-structured interviews with important actors within the local accounting profession, standard setting and regulatory environment, to analyse fair value accounting implementation. This study also incorporates information from press releases and newspapers, to provide a more comprehensive picture of fair value implementation. Findings – First, professionals undertake routine actions, cultivate interests and strategically navigate their environment during the process of fair value standard implementation. Second, the role of appraisers becomes more prominent during this process. Third, government involvement is significant in ensuring the successful implementation of global accounting standards. Research limitations/implications – First, differing localised contexts, including communities and actors, may shape how an emerging country undertakes the diffusion and implementation of global standards, which in turn can also lead to institutional change. Second, government involvement is crucial in supporting the implementation of global accounting standards within emerging economies. Third, implementing market-based measurements within emerging economies characterised by a lack of an active and liquid market may present challenges. Practical implications – Third, implementing market-based measurements within emerging economies characterised by a lack of an active and liquid market may present challenges. Originality/value – This study applies the concept of Institutional Work within Institutional Theory to explain how fair value standards are implemented within a localised emerging economy characterised by unique actor roles and goal-directed action. Keywords Localcontext,Actors,Institutionalwork,Fairvalue,Indonesia,Emergingcountry, IFRS implementation

Item Type:	Article
Subjects:	600 Technology (Applied sciences) > 650 Management > 657 Accounting 600 Technology (Applied sciences) > 650 Management > 657 Accounting > Financial reports
Divisions:	Faculty of Economics and Business > Department of Accounting
Depositing User:	Ms Linggar Yekti Nugraheni
Date Deposited:	10 Apr 2023 07:30
Last Modified:	10 Apr 2023 07:30
URI:	http://repository.unika.ac.id/id/eprint/31434

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