This study examines the value relevance of accounting information under
International Financial Reporting Standarts (IFRS) in Indonesia Stock Exchange
(IDX). The study contributes to the debate over the mandatory adoption of IFRS
and the value relevance of accounting information reported under IFRS.
Based on model developed by Ohlson (1995) and using yearly market data
from 2011 to 2012, this research investigates the value relevance of accounting
information of firm traded on Indonesia Stock Exchange (IDX).
Our results show that value relevance of earnings and book value has not
increased after adoption of International Financial Reporting Standarts (IFRS) in
Indonesia
