The Effect Of ERP Implementation To The Usefulness Of Accounting Information (Study Case In Indonesian Companies)
Abstract
ERP systems have become the most popular system for the majority of
publicly traded companies and have radically changed the way accounting
information is processed, analyzed, audited, and disseminated. In this research, the
researcher examine the reliability and relevancy of accounting information of a
company. The reliability and relevancy are closely related to practical
discretionary accruals that have bad and good side effects for stake holders and
institution who concern with the financial report. The data in this research are
come from 26 sample firms, which registered in Indonesian capital market
directory, after implement Enterprise Resource Planning (ERP) program.
The result of this research stated that the implementation of ERP could
decrease the reliability of accounting information because there is an increasing
value of discretionary accrual that exist in financial report. Then the second result
is the implementation of ERP could increase the relevancy of accounting
information because the total time that needed to post the financial report is
shortened. It means that before the ERP program implementation, the financial
report process take a longer time to accomplish, but after the program went live
the report process is faster. Because of that, the financial report can be posted
early than Fix Year End. Moreover the value of Earning per Share also increases.
Key Word: ABSDA, LAG, reliability and relevancy
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