Sustainability Accounting Compliance Under IFRS S2:Carbon Emission Disclosure in IndonesianState-Owned Enterprises AcrossThree Regulatory Phases

  • Authors

    • Widyaningsih Azizah Faculty of Economics and Business, Universitas Pancasila
    • Eka Sudarmaji Faculty of Economics and Business, Universitas Pancasila
    • Hotman Fredy Faculty of Economics and Business, Universitas Pancasila
    https://doi.org/10.14419/0xmd1n40

    Received date: December 15, 2025

    Accepted date: January 13, 2026

    Published date: January 23, 2026

  • Disclosure; Carbon Emissions; IFRS S2; State-Owned Enterprises (SOE); Sustainability

  • Abstract

    Climate change has heightened global demand for clear, comparable carbon emissions reporting. Nonetheless, there is currently no standardized tool to evaluate compliance with carbon emission disclosure requirements under IFRS S2 in the Indonesian context. The purpose of ‎this study is to develop operational indicators for carbon emission disclosure based on IFRS S2, assess how well state-owned enterprises ‎‎(SOEs) are complying with the rules, and examine how the rules evolve. A mixed-methods approach was utilized. The development of indicators involved desk research, coding processes, and the expertise of professionals. Quantitative analysis included content analysis of annual reports and sustainability reports from SOEs. The Friedman Test and the Wilcoxon Signed-Rank Test were used to assess ‎differences between the phases. The Friedman test indicated substantial differences in compliance levels across the three regulatory phases. ‎Follow-up Wilcoxon tests showed that compliance in Phase 2 and Phase 3 was much higher than in Phase 1. Nonetheless, there was no ‎significant difference between Phase 2 and Phase 3, indicating that enhancements in the final phase signify improved disclosure quality ‎rather than quantity. This research is significant for the development of IFRS S2-based carbon emission disclosure compliance indicators ‎tailored for the Indonesian context; it offers a longitudinal analysis that tracks the evolution of SOE compliance across three national climate ‎regulatory phases; and it presents preliminary empirical evidence indicating that global IFRS S2 standards are impacting corporate reporting ‎behaviour before mandatory implementation‎.

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  • How to Cite

    Azizah, W. ., Sudarmaji, E. ., & Fredy, H. . (2026). Sustainability Accounting Compliance Under IFRS S2:Carbon Emission Disclosure in IndonesianState-Owned Enterprises AcrossThree Regulatory Phases. International Journal of Accounting and Economics Studies, 13(1), 393-400. https://doi.org/10.14419/0xmd1n40