In 2010, Indonesian banks implemented International Financial Accounting Standards (IFRS) for reporting information about financial instruments. The adoption is hypothesized to make risks more transparent. Its effect on the relevance of accounting information reported by publically traded Indonesian banks from 2007-2013 was investigated. Contrary to our expectations, value-relevance and risk-relevance of accounting information declined after the adoption of IFRS. Findings suggest that IFRS exerts a lesser influence on the relevance of accounting information in developing countries with smaller, less liquid, and weakly enforced capital markets.