Comprehensive Income Research Articles

PENERAPAN PSAK 71 PADA BANK BJB TAHUN 2021

This study aims to determine the application of PSAK 71 to Bank BJB in 2021, as a regional-owned commercial bank with a core capital of Rp. 11.93 trillion and listed as the main board. This study uses qualitative methods, this study uses secondary data in the form of company financial statements for the 2020-2021 period. The conclusion that can be drawn is that the application of PSAK 71 accounting policies has taken effect on January 1, 2020, with the enactment of PSAK 71, bank BJB provides an allowance for impairment losses, although in implementation the percentage or number is different each year. In practice, there is an impairment loss which is reported as a deduction based on the carrying amount of financial assets in a number of groups of loans, then receivables which are recognized in the statement of profit or loss and other comprehensive income within the company

Pengaruh Perputaran Kas Dan Perputaran Piutang Terhadap Profitabilitas Pada PT. XYZ

This study aims to determine and analyze the effect of cash turnover and accounts receivable turnover on profitability at PT. PLN (Persero) Main Unit for West Sumatra Region. The research method used is comparative causal. The sampling technique used is purposive sampling so that in this study the sample used is data from financial statements in the form of comprehensive income, total assets, cash and cash equivalents, income and total receivables at PT. XYZ. The data analysis technique used is multiple linear regression, t test, F test and coefficient of determination. Based on multiple linear regression analysis it was found that Y = 0.114 – 9.959 X1 + 0.009 X2. Based on the results of the partial study, it is known that the cash turnover and accounts receivable turnover variables have no positive and significant effect on profitability at PT. XYZ. Based on the results of the simultaneous test, it is known that cash turnover and accounts receivable turnover have no positive and significant effect on sales at PT. XYZ. The results of the coefficient of determination obtained Adjusted R Square of 0.036. This means, the ability of the variable (X) cash turnover and receivables turnover in explaining the profitability variable (Y) contributed 3.6% while the remaining 96.4% was explained by other variables not explained in this study.

Could Other Comprehensive Income Contribute to Foreign Exchange Risk Management Discourse?

Could Other Comprehensive Income Contribute to Foreign Exchange Risk Management Discourse?

Covid-19 Pandemisinin Sektörel Ölçekte Mali Analizi: Getir Girişim Sermayesi Örneği

Covid- 19’ un küresel ölçekte tehlikeli bir salgın halinedönüşmesi ile ülkeler çeşitli karantina süreçlerini kapsayankısıtlamalara gitmişlerdir. Bu kısıtlamalar sürecinde bazıfirmalar kişilerin kısıtlama alanları içerisinde hizmet alımınadevam edebilmesi için online sipariş verebilecekleri çeşitliuygulamalar geliştirmişlerdir. Birçok sektör Covid-19’ungetirdiği yeni şartlara göre yeniden yapılanma sürecinegirmiştir. Pandemi süreci dijitalleşmenin yaygınlaşmasına veonline alışveriş şirketlerinin çoğalmasına neden olmuştur. Buhizmetlere olan ilgi pandemi’nin etkisiyle aşırı talep görür halegelmiş ve önemli bir büyüme yönünde ivme kazanmıştır. Buuygulamalardan birisi de RE-PIE Gayrimenkul ve GirişimSermayesi Portföy Yönetimi A.Ş. Getir Girişim Sermayesininkurmuş olduğu “Getir” uygulamasıdır. Bu çalışmanın amacı,RE-PIE Gayrimenkul ve Girişim Sermayesi Portföy YönetimiA.Ş. Getir Girişim Sermayesinin kurmuş olduğu “Getir”firmasının pandemi öncesi ve sonrası finansal açıdan etkilerinigörebilmek için finansal analiz yöntemlerinden birisi olankarşılaştırmalı tablolar analizinin yapılmasıdır. Çalışmakapsamında, Covid-19’un sektörel etkileri ele alınmış Covid ’inetkilerini sektör bazlı görebilmek adına gerekli literatür taramasıyapılmıştır. Çalışmada karşılaştırılmalı tablolar analizi hakkındabilgi verilmiştir. Çalışmanın yönteminde, işletmeninin BağımsızDenetim Raporlarınca; Bilanço Tablosu, Kâr veya ZararTablosu, Diğer Kapsamlı Gelir Tablosu, Nakit Akış Tablosu veToplam Değer / Net Varlık Değeri Değişim Tabloları 2019-2020-2021 yılları baz alınarak karşılaştırmalı tablolar analiziyöntemine tabi tutularak incelenmiştir. Bu çalışma sonucunda;kısıtlamalar nedeniyle küresel ölçekte bazı sektörlerde daralmalaryaşanmasına rağmen, bu durum bazı firmaların büyümelerineve yüksek kârlar elde etmelerine olanak tanıdığı ve ülkemizdebüyük ilgi toplayan “Getir” uygulamasının pandemi öncesi vesonrası kıyaslandığında büyük bir başarı yakaladığı tespitedilmiştir.

Analisis Perbedaan PSAK 1 Revisi 2013 dengan IAS 1 Tentang Penyajian Laporan Keuangan dan PSAK 3 Revisi 2016 dengan IAS 34 Tentang Laporan Keuangan Interim

An interim financial report is a financial report that includes complete financial statements as described in PSAK No. 1 but in an interim period, or a time span of less than one year. This study aims to explain the comparison of policies that regulate PSAK No. 3 in the preparation of interim financial statements. The method used in this paper is a literature study, where the author collects several relevant national and international journals as the main source for this writing. The results show that the difference between PSAK and IAS is not significantly different. This is due to various factors and conditions in Indonesia. This study reveals that (1) under the supervision of PSAK, IAS does not regulate capital market regulations. (2) PSAK 1 still approves the use of the word "balance sheet" and does not require the use of the word "financial statements". (3) IAS 1 does not apply to several entities, such as sharia entities and the public sector. (4) PSAK 1 which adopts IAS 1 requires the selection of other comprehensive income items before tax to show the amount of tax related to the two groups. (5) IAS 1 lists non-current assets followed by current assets. While in PSAK No. 1 is presented in reverse order. (6) PSAK 3 removes the policy regarding the effective date because it is considered irrelevant. (7) PSAK 3 doesn't adopt contractual changes or anticipate price changes that refer to the conceptual framework because it has not been reviewed by KDPPLK.

Executive compensation and the financial performance of Polish listed companies from the corporate governance perspective

Research background: The level of compensation earned by CEOs and the relationship between executive pay and companies? performance is one of the most widely studied issues in the corporate governance literature. Studies conducted in the last several decades have provided evidence that CEO pay should be aligned with accounting financial measures. Purpose of the article: The main purpose of this paper is to determine the relationship between executive compensation and organizational financial performance. In particular, the effect of net income and comprehensive income as the accounting measures of financial performance on executive compensation is compared. Methods: The research comprised listed companies on the Warsaw Stock Exchange (WSE). The role and effect of accounting financial measures on executive compensation are analyzed based on three regression models. The period of analysis spanned ten years, from 2009 to 2018. Findings & value added: There are three conclusions that can be drawn from the study. Firstly, executive compensation in the analyzed companies largely depends on the accounting measures of financial performance, based on net income and comprehensive income (excluding ROE). Secondly, its level is significantly and positively influenced by the company?s size, Tobin?s Q ratio, debt ratio, and dividend rate. Thirdly, comprehensive income has a stronger effect on executive compensation than net income. Our findings add some potentially noteworthy dimensions to the economic literature on corporate governance, which is especially important to apply in the CEE region and other emerging economies. The Anglo-American assumption of corporate governance and executive compensation policy might not be suitable for the realities in much of the world.

Combined Source-Storage-Transmission Planning Considering the Comprehensive Incomes of Energy Storage System

An energy storage system transfers power and energy in both time and space dimensions and is considered as critical technique support to realize high permeability of renewable energy in future power systems. It contributes to the achievement of China’s long-term carbon emission abatement targets. However, the promotion and application of energy storage are severely restricted due to the high construction cost of energy storage systems and lack of effective compensation mechanisms for peak-regulating ancillary service. In this study, a source-storage-transmission joint planning method is proposed considering the comprehensive incomes of energy storage. The comprehensive income of the energy storage system is divided in detail from the planning level, and the accounting method of energy storage income is proposed. Based on the load fluctuating trend under the condition of the connecting wind power grid, the dynamic electricity pricing methods of power trisection and time trisection are introduced to achieve the dual goals of direct income from energy storage and improving system flexibility. To comprehensively consider the direct income of peak-valley arbitrage and indirect income of energy storage configuration, a coordinated planning model of source-storage-transmission is constructed and tested in the Garver-6 system using the measured data from one province grid in China. The results verify the effectiveness of the proposed methods and show improvements in cost recovery and system flexibility.

International Determinants of Comprehensive Income Reporting by Groups – An Analytical and Comparative Study of Poland and Germany

The mainstream theoretical and empirical research presented in the study is a comparative analysis of comprehensive income reporting by groups listed in the Polish and German capital markets. The theoretical part of the article is dedicated to a scientific discussion on the determinants of the capital market and corporate governance in continental Europe and the so‑called ‘new governance’, related to the convergence of financial reporting standards, including IFRSs, that oblige groups of entities to prepare consolidated statements of comprehensive income. It also assesses the relevance of comprehensive income to capital market players. The empirical part contains the results of comparative research on the format and structure of consolidated statements and the nomenclature of their components, as well as the findings from studies of the value relevance of comprehensive income for the WIG30 and DAX groups in 2009–2019.

Bank earnings management and performance reporting of comprehensive income

FASB’s ASU 2011-05 mandated that comprehensive income (CI) and other comprehensive income (OCI) be reported in performance statements (a single income statement or a separate statement of CI) rather than equity statements. Employing a difference-in-differences research design with ASU 2011-05 as the treatment, I find that presenting accounting information in different statements affects bank earnings management, specifically, presenting CI and OCI in performance statements (especially in single-statements with net income) reduces earnings management through selective sales of available-for-sale (AFS) securities in the banking industry. I also find that the influence of ASU 2011-05 is primarily on banks with high equity incentives in the CEO’s compensation package or less CEO job security. Additional analyses suggest that performance reporting of CI and OCI increases the predictive ability of realized gains and losses of AFS securities; however, banks may manage loan loss provision as a substitute strategy when they have to decrease selective sales of AFS securities.

An Examination of Other‐than‐temporary Impairments: Evidence from FSP FAS 115‐2 and FAS 124‐2

This study investigates amendments to the other‐than‐temporary impairment (OTTI) measurement and recognition guidance for debt securities in the Financial Accounting Standards Board's Staff Position FAS 115‐2 and FAS 124‐2 (‘the FSP’). The FSP permits the OTTI charge for debt securities to be split into the credit loss amount recognized in net income (NI) and the amount related to all other factors (noncredit loss) recognized in other comprehensive income (OCI) under certain instances. Thus, the FSP provides banks with additional discretion in recognizing the amount of unrealized losses in NI. Using quarterly accounting data on US bank holding companies from the first quarter of 2010 to the fourth quarter of 2016, I examine whether banks’ decisions regarding OTTI bifurcation are associated with financial reporting and regulatory capital incentives. First, I predict and find that proxies for regulatory capital management, income smoothing, and big bath behaviour impact the percentage of OTTI recognized in OCI. Further evidence suggests that banks with histories of income smoothing through loan loss provision and realized security gains and losses assign a greater share of OTTI to OCI. Then, I predict and find that banks manage OTTI recognized in NI downward to meet quarterly financial reporting benchmarks. Finally, I show that banks with a higher discretionary proportion of OTTI recognized in OCI increase their lending over the subsequent quarter.

Implementasi PSAK 46 atas Pajak Penghasilan (Studi pada PT. Pembangunan Jaya Ancol, Tbk.)

This study aims to analyze the implementation of Income Tax at PT Pembangunan Jaya Ancol Tbk based on the provisions of the Statement of Financial Accounting Standards (PSAK) No. 46 Income Tax. The researcher used a combined data analysis method between descriptive data analysis and quantitative data analysis in order to produce a more detailed report in describing, analyzing and interpreting the data. Based on the results of the research that has been done, the researchers found several applications that were in accordance with PSAK No. 46 of them are PT Pembangunan Jaya Ancol Tbk which has implemented PSAK No. 46 regarding Income Tax on the recognition of tax expense in accordance with paragraph 05, the company has also calculated transactions or events related to other comprehensive income that are not calculated outside the calculation of profit or loss in accordance with PSAK No. 46 paragraph 05, recognition of tax difference from tax payable and tax for the period as an asset, recognition of the larger benefit as deferred tax liability and provisions for offset or tax amnesty in accordance with the provisions of PSAK no. 46. ​​However, the company has not treated donations or grants in accordance with the provisions and implementation of PSAK No. 46 regarding income tax in paragraph 33, apart from that, not all financial statements at PT Pembangunan Jaya Ancol Tbk do not include information on taxes written off during that period.

The Change in Poverty from 1995 to 2016 among Single-Parent Families

This paper is the first to examine changes in poverty over time using a comprehensive set of linked survey and administrative data, implementing the recommendations of the Interagency Technical Working Group on Evaluating Alternative Measures of Poverty. Using the Comprehensive Income Dataset (CID), we correct for measurement error in survey-reported incomes, focusing on single-parent families from 1995 to 2016. Our preferred estimates indicate that single-parent family poverty declined by 62 percent over time, while it fell by only 45 percent using survey data alone. Moreover, survey-reported deep poverty among single-parent families increased over time, while it fell using the CID.

Representation and value relevance of net income versus comprehensive income on millennials’ financial decision-making

PurposeFinancial representation research has gained considerable attention among researchers. The argument is on representation preferences and the effect of graph versus text representation of financial data. The display format for net income (NI) and comprehensive income (CI) has been proven to influence users’ financial decision-making process, depending upon users’ characteristics. It is worth noting that millennials are users whose characteristics and cognitive skills differ from those of preceding generations. This study aims to unravel millennials’ preferences for the earnings information and representation when making financial analysis and judgement, thus providing insight on their decision-making strategy, either perceptual or analytical.Design/methodology/approachThis study used a 2 × 2 full factorial of experimental design, in which the financial representation in the following two ways: the textual disclosure content (NI versus CI) and the graphical display content (NI versus CI) was manipulated. This study conducted an online experiment with a total of 60 final participants.FindingsThe results reveal that textual disclosure of CI influences millennials’ financial decisions. This study also discovered that millennials’ financial decisions are unaffected by graphical displays of financial data as they place greater importance on textual financial data, particularly on CI representations, when making financial decisions.Research limitations/implicationsMillennials are financial users who apply different financial analysis and judgement strategy from their predecessor. They value textual disclosure and CI when analysing firms’ performance.Originality/valueThis study contends that millennials are the financial users who will use analytical strategies while making financial decisions.

The effect of comprehensive income disclosure on the performance efficiency of the Egyptian stock market – A survey study

The effect of comprehensive income disclosure on the performance efficiency of the Egyptian stock market – A survey study

The role of the Big Four audit firms and the legal system in non-GAAP comparability

The purpose of this paper is to investigate whether the firms with the same Big Four audit firm and from the same legal system disclose more comparable non-GAAP measures. Using 23,436 pairs of European firms, we hand-collected infor-mation on the non-GAAP measures disclosed in the statement of comprehensive income. The results showed that the firms with the same Big Four audit firm or from the same legal system are positively and significantly associated with non-GAAP comparability. Our work adds to the studies on accounting comparability. Furthermore, it provides fresh insights that support the latest IASB activity on the Primary Financial Statement project, under which the standard setter has en-dorsed ED/2019/7 General Presentation and Disclosures.

Optimalisasi Laba UMKM Melalui Manajemen Keuangan

The purpose of this service is to provide training to manage business profits for Micro, Small and Medium Enterprises (MSEs) in the Bandung area as many as 200 participants. The implementation method is carried out virtually via zoom us where at the end of the session participants are given the opportunity to ask questions related to problems in managing finances. The material provided is related to the stages in managing finances, namely: separate business capital from own capital, all recorded correctly, financial statements are prepared including statements of financial position, comprehensive income statements, statements of changes in equity and cash flow statements. This is done so that business operations are well controlled. This activity is organized by the Accounting Student Association (HMAk UNIKOM). The result of this service is that the participants of Micro, Small and Medium Enterprises (MSEs) are greatly helped in managing their business profits. The material presented becomes the basis for participants in improving their business financial records. The participants were also given additional material in using social media to market their products, The conclusion of this activity is very beneficial for Micro, Small and Medium Enterprises (MSEs) actors in managing their business finances so that the sustainability of their business is maintained. 
 Key words: MSEs, profit optimization, social media

Other comprehensive income, its components, and analysts’ forecasts

Other comprehensive income, its components, and analysts’ forecasts

Effects of other comprehensive income on audit fees and audit report lag in Egyptian firms: does board gender diversity matter?

PurposeThis paper aims to (1) investigate the effect of other comprehensive income (OCI) on audit fees (AF) and audit report lag (ARL) and (2) test the moderating effect of board gender diversity (BGD) on such relationships.Design/methodology/approachThis paper uses data extracted from the financial reports for a sample of Egyptian firms from 2013 to 2019, where the data are processed using the Panel Corrected Standards Errors (PCSE) and the Structure Equation Model (SEM).FindingsThe results reveal that (1) the OCI existence and OCI volume have a significant positive effect on AF and ARL, and (2) the presence of female directors on the board and the percentage of female representation affect the relationship between OCI and AF positively, but this effect on the relationship between OCI and ARL is insignificant.Research limitations/implicationsThis paper has some limitations, where the analysis uses a small sample of Egyptian listed firms, as well as, the measures that were used as proxies of the study variables, which do not necessarily express the most suitable ones.Practical implicationsThe results of this paper would (1) provide signals to the audit market, the professional bodies in Egypt and stakeholders about the determinants of AF and ARL, (2) provide guidelines that support the capital market authority to consider gender diversity in boards of companies taking into considerations its impact on AF and ARL, and (3) help the accounting setters in emerging economies as Egypt in drafting more suitable standards and guidelines regarding OCI.Originality/valueThis paper adds to the literature on OCI, where it investigates the effect of OCI on ARL, which was not yet studied in prior studies. Also, this paper complements and extends the literature by providing empirical evidence from one of the emerging markets as Egypt about the effect of BGD on the relationships between OCI, AF and ARL, as these relationships have not been examined before.

Akuntansi Pada Surau Zam Zam Berdasarkan Isak 35

According to the Interpretation of Financial Accounting Standards (ISAK) 35 financial reporting of non-profit companies consist of statements of financial position, statements of comprehensive income, reports of changes in net assets, statements of cash flows and notes to financial statements. This study aims to look at the Accounting at Surau Zam-Zam based on ISAK 35 concerning Presentation of Financial Statements to Non-profit Oriented Entities. The results of the research on the presentation of financial statements in this surau have not been prepared based on ISAK 35, which must be presented in five forms of financial statements, including statements of financial position, statements of comprehensive income, reports of changes in net assets, statements of cash flows and notes to financial statements. The financial statements of Surau Zam-Zam only include simple financial reports, namely income and expenses without being grouped by account and still using their own language. Therefore, Surau Zam-Zam needs to apply accounting standards for non-profit organizations based on ISAK 35 in the preparation and presentation of its financial statements. This is intended so that the surrounding community believes that the allocation of funds and the accountability of the community's funds at this surau have been managed properly.

Earnings and capital management by Latin American banks through financial instruments

Purpose: The purpose of this study is to assess whether banks in Latin America make use of unrealized gains and losses through financial instruments, recorded as other comprehensive income, when engaging in earnings management and capital resource allocation.
 Methodology: Empirical tests were conducted that were based on data from 75 banks in 13 countries in Latin America, (from 2008 to the first quarter of 2020), and which took account of the panel data model estimates with fixed effects, devised by Barth et al. (2017).
 Results: The estimates obtained revealed that, generally speaking, there is no empirical evidence that these banks made use of unrealized gains and losses through financial instruments for the purposes of earnings management. However, the empirical results showed that banks with lower capital ratios (i.e. with a lower quintile) use these profit and loss statements through the AFS or FVOCI measurements, both as a capital and earnings management mechanism.
 Research Contributions: The study seeks to make a significant addition to the accounting literature on management results, which is often restricted to discretionary accruals, by evaluating earnings and capital management practices through operational activities - in the case of capital management, through the reduction of risk-weighted assets (RWA).