Abstract
The purpose of this study was to determine how the accounting treatment of biological assets according to the SAK-ETAP perspective regarding recognition, measurement, reporting and disclosure of financial statements. Suggest that you record financial reports according to SAK ETAP standards so that they can be used as decision-making materials for Oro-oro Ombo's dairy farms. reporting of biological assets in accordance with standards and also in accordance with existing facts can be profitable in the dairy farming business in the future. This research is a qualitative research with a case study research type. The subjects of this study were Oro-oro Ombo's dairy farm and the research object was dairy cows. The primary data used in this study are the results of interviews with informants who are directly responsible for managing the cattle farm business. Meanwhile, secondary data is used to support the primary in the form of documents that are related to the object of research. The results showed that the recognition of biological assets in the form of cows in accounting treatment according to cattle breeding is recognized as fixed assets and the measurement of biological assets is measured at fair value or equal to market prices. The reporting carried out by the farm includes a simple report that only shows the amount of income received for a month and also records the expenses incurred by the farm. Disclosure of biological assets on farms in the form of dairy cows contains a policy that does not recognize the classification of assets based on assets based on the productive life of the assets. So that the biological assets on Oro-oro Ombo's dairy farm, starting from recognition, measurement, reporting and disclosure are not in accordance with SAK-ETAP standards.
Highlights
Indonesia's economic development depends on the existence of reliable and strong MSMEs
Based on research that has been conducted at Oro-oro Ombo's farm regarding the accounting treatment of biological assets in the form of dairy cows based on the SAK ETAP perspective
The reporting of biological assets on Oro-oro Ombo's dairy farm, starting from recognition, measurement, reporting, disclosure is not in accordance with the standard level based on the SAK ETAP perspective, the following conclusions are obtained: Biological assets on the Oro-oro Ombo dairy farm in the accounting treatment are included in fixed assets. recognition of biological assets on the Oro-oro Ombo dairy farm is the market price at the time of acquisition of the asset, if the biological asset is the result of the breed itself the asset is recognized at birth and the value of the asset will be equalized to the market value of the biological asset obtained from it
Summary
Indonesia's economic development depends on the existence of reliable and strong MSMEs. There are many MSMEs in Indonesia, MSMEs engaged in the industry in natural or agricultural commodities are very much, due to the superiority of the geographical location in the country of Indonesia in terms of natural resources that are very abundant so that they can support this sector. The agricultural industry has different characteristics from trading, manufacturing and service companies in general, companies engaged in agriculture have unique assets because these assets undergo a growth transformation even after these assets produce an output of these assets called biological assets. With biological transformations in biological assets, measurements are needed that can show the value of these assets fairly in accordance with the agreement and their contribution in generating an economic profit flow for the company
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