Abstract

 Agricultural activity is a type of operational activity carried out by an entity to manage biological transformation and harvested biological assets to be sold or converted into agricultural products. In biological transformation, measurement is needed, which shows the value of a biological asset in fair value with the entity's economic benefits. PSAK 69 concerning agriculture has been approved by the Indonesian Financial Accounting Standards Board (DSAK IAI), and its implementation becomes effective as of 1 January 2018. PSAK 69 Agriculture regulates the accounting treatment and disclosures related to agricultural activities. This research was conducted to determine the accounting treatment of agricultural activities and the implementation of PSAK 69 to PT IJ, which is one of the entities whose business activities are engaged in the exploitation of industrial plantations. This study used qualitative research methods with interpretive paradigms and ethnomethodology approaches. Data analysis techniques were used at the time of data collection in observations, interviews with informants, and collecting documents in financial statements supporting data research. Based on the research conducted, the discussion results signify that the accounting treatment of agricultural activities at PT IJ in recognition, measurement, recording, presentation, and disclosure is in accordance with PSAK 69 concerning agriculture.
Highlights
Business in the agricultural industry currently experiences rapid growth
Agricultural activities are the types of operational activities that an entity performs for managing biological transformation and harvesting of biological assets, which is subject to special accounting treatment in PSAK 69 on agriculture
IJ is recommended to be carried out in accordance with PSAK 69 on agriculture
Summary
Business in the agricultural industry currently experiences rapid growth. Several factors can influence these developments, such as the new advancements in agricultural technology, increasing demand for agricultural products, the existence of a new economic era, the ASEAN free trade market, and the emergence of regional autonomy that impacts the management of agricultural products. Assets owned by companies in the agricultural industry have unique characteristics, in contrast to companies engaged in other sectors The differences in these characteristics can be seen from management activities and biological transformation that occurs in plants to produce other assets or products that can be used directly or can be further processed. In contrast to manufacturing companies in general, companies engaged in the agricultural industry have assets in the form of living things (animals and plants). If other standards have asset classifications in the form of buildings, machines, vehicles, etc., PSAK 69 is a standard that regulates the accounting treatment of biological assets (live plants or animals) and agricultural products owned by the entity. Companies must be careful in measuring, recognizing, presenting, and disclosing the things regulated in PSAK 69 to provide reliable, relevant, easy to understand, and comparable financial statement. Even if there is value in the plant, they will not exceed the entity's costs
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