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