CHALLENGES OF IMPLEMENTING INTERNATIONAL ACCOUNTING STANDARDS IN DEVELOPING COUNTRIES: A CASE STUDY IN INDONESIA

Abstrak

This study aims to review the challenges faced in the implementation of International Financial Reporting Standards (IFRS) in developing countries, with a special focus on Indonesia. Through a comprehensive literature review, the study identified several key factors influencing the implementation of IFRS, including regulatory complexity and variability, lack of education and training for accountants, and external pressures driving profit management. In addition, resistance from various business groups and limited technological infrastructure are also significant obstacles. Nonetheless, the adoption of IFRS offers many benefits, such as reduced information asymmetry and increased comparability of financial information. To overcome these barriers, a more structured and collaborative approach is needed between governments, regulatory bodies, educational institutions, and the business sector. This study provides practical advice for practitioners and academics to increase awareness, understanding, and capacity in implementing IFRS, so as to improve the quality of financial reporting and transparency in Indonesia's financial markets.