Statement Disclosure Research Articles

Studi Deskriptif: Determinan Teknologi, Informasi dan Komunikasi dalam Pengungkapan LKPD di Indonesia

Abstract: Purpose: This descriptive study aims to explain technological determinants related to the disclosure of local government financial statements proxied in the variables of Telecommunications Network (X1), Internet Access (X2), Technology Development (X3), e-Government (X4), Website Accessibility (X5), Press Visibility (X6), and E-Procurement (X7) Method: A quantitative approach at the descriptive level is used in this study. The non-probability technique of the purposive sampling type obtained 450 observations from 150 samples of district local governments in Indonesia during 2017-2019 through documentation and literature review of secondary data. Data analysis using SPSS software. Results: The average level of telecommunications networks, quality of internet access, technology development, e-government, ease of website accessibility, and the frequency of procuring goods and services online for Indonesian local governments are in moderate numbers. Limitations: This study is only up to the level of describing the sample and using a limited number of ICT determinants. Some of the technological factor data used in this study are not detailed based on the district government, due to limited information obtained through the Ministry of Communication and Information and the Central Statistics Agency (BPS). Contribution: These findings contribute to central and regional governments as regulators and decision makers in formulating policies to consider technological factors related to financial report disclosure in order to realize transparency and public accountability in a time-effective and cost-efficient manner. Keywords: 1. Technology 2. Information and Communication Technology 3. Local Government 4. ICT 5. LKPD 6. Internet

PENGARUH KARAKTERISTIK, KOMPLEKSITAS DAN TEMUAN AUDIT TERHADAP TINGKAT PENGUNGKAPAN LAPORAN KEUANGAN PEMERINTAH DAERAH DI PROVINSI GORONTALO

The research was conducted at the Financial Audit Agency of the Republic of Indonesia, Representative of the Province of Gorontalo. The purpose of this study is to find out how the Influence of Characteristics, Complexity and Audit Findings on the Level of Disclosure of Local Government Financial Statements in Gorontalo Province. This study uses multiple linear regression where the dependent variable is the level of disclosure of local government financial statements and the independent variables are the size of the local government, regional independence, transfer income, number of regional apparatus organizations, legislative size and audit findings. From the results of research conducted partially the size of the local government has a significant effect on the level of disclosure of local government financial statements in Gorontalo Province in 2018-2020, regional independence has a significant effect on the level of Disclosure of local government financial statements in Gorontalo Province in 2018-2020, transfer income has no effect significantly to the level of disclosure of local government financial statements in Gorontalo Province in 2018-2020, the number of regional apparatus organizations did not significantly affect the level of disclosure of local government financial statements in Gorontalo Province in 2018-2020, the size of the legislature had a significant effect on the level of disclosure of local government financial statements in Gorontalo Province in 2018-2020 and audit findings have a significant effect on the level of disclosure of local government financial statements in Gorontalo Province in 2018-2020

Financial risk management in the accounting system

The article is devoted to the study of financial instruments in conditions of economic uncertainty. Based on a study of national and international statistics and theoretical resources related to the restructuring of socio-economic and geopolitical ties, due to the rapid spread of the COVID-19 pandemic, its implications for accounting for financial instruments and disclosure of financial statements in accordance with International Financial Standards Reporting.
 A combination of factors such as rising unemployment, falling demand for goods, bans and restrictions on doing business, severance of international ties, reorientation of markets to domestic consumption, rising risks of bankruptcy and default have led to the formation of economic uncertainty, which is most threatened by business initiative. Economic uncertainty, which gradually changes from sudden to prolonged, has a direct impact on the business activity of enterprises, in particular, on their financial instruments.
 The pandemic caused by the COVID-19 virus has become a great challenge for participants in economic relations, who during the years of stability have managed to get used to stable market relations. The pandemic, which humanity has been struggling with for almost two years, has affected the entire system of social relations. At the beginning of the deployment of anti-epidemiological measures, the world economy was not ready to distance the production process. Economic indicators, which are an indicator of the development of individual states, demonstrate the vulnerability of sustainable socio-economic relations that existed before the COVID-19 pandemic.
 The potential impact of the coronavirus outbreak on financial instruments has been assessed in such areas as increased expected credit losses, modification of financial assets and liabilities, losses under financial guarantee agreements accounted for in accordance with International Financial Reporting Standards, and reduced hedge effectiveness.

PENGARUH INDIKATOR RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS DAN CAPITAL (RGEC) TERHADAP INTERNET FINANCIAL REPORTING (Studi Empiris pada Emiten Bank di Indonesia Periode 2008-2018)

Management is used to convey information to external parties of the company through financial reporting, through the internet network. Internet Financial Reporting is the disclosure of financial statements made by companies using internet media, disclosure of these financial statements can be in the form of reports submitted on the company's website or financial statements published on the stock exchange. The purpose of this study is to see the effect of bank soundness with Risk Profile, Good Corporate Governance, Earnings and Capital (RGEC) indicators on Internet Financial Reporting Empirical Studies on Issuer Banks in Indonesia in the financial reporting period from 2008 to 2018. Methods sampling in this study using certain characteristics contained in the sample (purposive sampling) and the test tool used for analysis is multiple linear regression as a test tool using SPSS 25.0. The sample in this study were 10 companies with a research period of 11 years. The results of this study indicate that only the ROE and CAR ratios affect Internet Financial Reporting (IFR), while for NPL, LDR, GCG, and NIM, whether good or bad, the calculations do not affect Internet Financial Reporting or disclosures made by companies in each bank.

ANALISIS PENCATATAN DAN PENYAJIAN LAPORAN KEUANGAN PADA UMKM BERDASARKAN SAK ENTITAS MIKRO KECIL DAN MENENGAH PADA AISYAH MART

This study aims to analyze the rocognition of items in financialstatements, measurement of financial statement elements, presentation ofitems in financial statements and disclosure of financial statements in AisyahMart Business are in accordance with the provisions in Micro, Small andMedium Entity Financial Accounting Standards (SAK EMKM) 2018. Theanalysis technique used in this study is a comparative descriptive method,which is a method that compares accounting treatment that includesrecognition, measurement, presentation and disclosure in Aisyah Mart andChampion method for calculating cheklist value in determining conformitycriteria. The result of the study indicate that the recognition andmeasurement of the items in the financial statements of Aisyah Mart Businessare not in accordance with SAK EMKM. Whereas the presentation anddisclosure of financial statements for Aisyah Mart Business do not match theSAK EMKM.

THE IMPACT OF GRAY PROFITABILITY INDEX AND PUBLIC OWNERSHIP ON FINANCIAL STATEMENTS DISCLOSURE WITH AUDIT COMMITTEE AS A MODERATING VARIABLE

Disclosure of financial statements is one of the most important measurements for a sustainable company. This study will examine the effect of IFRS implementation on the gray profitability index and the portion of public share ownership on the disclosure of financial statements with the audit committee as a moderating variable. This study uses a quantitative research model and uses secondary data. The data in this study used data analysis methods, namely Moderating Regression Analysis (MRA) with IBM SPSS software and Microsoft Excel program as a testing support system, with data analysis techniques presented in the form of a classic assumption test and R2, F test and T test. The population in this study were all property and real estate companies that consistently had complete financial and annual reports for 2018 to 2019. This study used a sampling technique, namely purposive sampling and obtained 32 companies according to the classified criteria. The results indicated that the gray profitability index had no effect on the disclosure of financial statements, as well as the addition of the audit committee as a moderator did not strengthen the relationship to the disclosure of financial statements. Furthermore, the variable share of public ownership has a positive and significant effect on the disclosure of financial statements, as well as the moderation of the audit committee which further strengthens the relationship with the disclosure of financial statements. Kata Kunci: Gray Profitability Index, Public ownership, Disclosure of financial statements, and Audit Committee. JEL Classification: G32, M41

The Effect of IFRS Implementation in The Gray Index : Leverage, Liquidity, Profitability, Solvency, and Portion of Public Share on Disclosure of Financial Statements

The Effect of IFRS Implementation in The Gray Index : Leverage, Liquidity, Profitability, Solvency, and Portion of Public Share on Disclosure of Financial Statements

Accounting Performance Goals in CEO Compensation Contracts and Corporate Risk Taking

This study provides the first large-sample archival evidence on the impact of three commonly used accounting performance goals (thresholds, targets, and maximums) in CEO compensation contracts on corporate risk taking. Using proxy statement disclosure on performance goals for CEOs of U.S. public companies, we find that lower thresholds and higher maximums are associated with greater corporate risk taking, and these results are more pronounced when CEOs have greater incentives to achieve accounting performance goals or have lower innate risk aversion. In addition, we find that target difficulty is not significantly associated with corporate risk taking after controlling for thresholds and maximums. Finally, we find that CEO compensation contracts are more likely to have lower thresholds and higher maximums when risk taking is more value-enhancing or when R&D investment is more profitable, consistent with boards setting performance goals to induce an appropriate amount of corporate risk taking. Our study contributes to the accounting literature on target setting and corporate risk taking by identifying accounting performance goals as a tool in executive compensation contract design to influence risk taking. This paper was accepted by Suraj Srinivasan, accounting.

PENGARUH INDIKATOR RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS AND CAPITAL (RGEC0 TERHADAP INTERNET FINANCIAL REPORTING

Management is used to convey information to external parties of the company through financial reporting, through the internet network. Internet Financial Reporting is the disclosure of financial statements made by companies using internet media, disclosure of these financial statements can be in the form of reports submitted on the company's website or financial statements published on the stock exchange. The purpose of this study is to see the effect of bank soundness with Risk Profile, Good Corporate Governance, Earnings and Capital (RGEC) indicators on Internet Financial Reporting Empirical Studies on Issuer Banks in Indonesia in the financial reporting period from 2008 to 2018. Methods sampling in this study using certain characteristics contained in the sample (purposive sampling) and the test tool used for analysis is multiple linear regression as a test tool using SPSS 25.0. The sample in this study were 10 companies with a research period of 11 years. The results of this study indicate that only the ROE and CAR ratios affect Internet Financial Reporting (IFR), while for NPL, LDR, GCG, and NIM, whether good or bad, the calculations do not affect Internet Financial Reporting or disclosures made by companies in each bank.

Faktor-Faktor yang Mempengaruhi Tingkat Pengungkapan Wajib LKPD Kabupaten/Kota di Kalimantan Selatan

This study tested and proved the effect of intergovernmental revenue, regional wealth, regional expenditure, and human development index on the level of mandatory disclosure of local government financial statements in South kalimantan. The independent variables in this study is intergovernmental revenue, regional wealth, regional expenditure, and human development index. Meanwhile, the dependent variable in this study is level of mandatory disclosure of local government financial statements. Population of this research covers 13 districts and cities within South Kalimantan in the period 2015-2018. The sample was selected using purposive sampling method and obtain of 52 local government financial statements. The analysis technique used on this study is multiple linear regression by SPSS 25 program. The result showed the variable intergovernmental revenue have effect on the level of mandatory disclosure. Variable regional wealth, regional expenditure and human development index do not have effect on the level of mandatory disclosure. This study also indicate that average of mandatory disclosure in South Kalimantan province is 77,98%.

CORPORATE GOVERNANCE ANALYSIS OF QUALITY DISCLOSURE OF NON-FINANCIAL FINANCIAL STATEMENTS IN INDONESIA STOCK EXCHANGE COMPANIES

This study discusses the effect of profitability, company size, leverage, public ownership and type of auditor on the quality of financial statement disclosure of non-financial companies on the Indonesia Stock Exchange (IDX).Research population is companies in the Indonesia Stock Exchange in 2014-2018. The total population in the year of research was 627 companies and the samples that fit the criteria were 358 companies. Retrieval data was tested by using panel regression.From these results, it indicates the variable profitability have no significant on the quality of financial of financial statement disclosures (p=0,232 > 0,05). Company size has positive and significant effect on the quality of financial statement disclosures (p=0,002 < 0,05). Leverage does not significantly influence on the quality of financial statement disclosures (p=0,560 > 0,05). Community ownership does not significantly influence on the quality of financial statement disclosures (p=0,176 > 0,05). Type of auditor has positive and significant effect on the quality of financial statement disclosures (p=0,018 < 0,05).

The practice and determining factors of voluntary graphics disclosure in Local Government Financial Statements in Indonesia

Research aim: This study aims to measure the extent and the determinants of voluntary graphics disclosure in Laporan Keuangan Pemerintah Daerah (LKPD) or Local Government Financial Statements in Indonesia. Design/ Methodology/ Approach: This study used 197 audited LKPD in Indonesia, comprising 155 regency governments and 32 district governments. The financial statements of these 197 local governments were examined to measure the extent of voluntary graphics disclosure and investigate the potential determinants of voluntary graphics disclosure. This study used multiple regression analysis to examine the determinants (performance, level of dependency, location, education background, and competency) of voluntary graphics disclosures. Research findings: The results indicate a low extent of voluntary graphics disclosure in the LKPD in Indonesia. The average voluntary graphics disclosure rate is 44.88%, demonstrating a lack of usage of voluntary graphics disclosure. The results also indicate that only performance has an insignificant effect on the extent of voluntary graphics disclosure. Practitioner/ Policy implication: The findings regarding voluntary graphics disclosure in LKPD should be of concern to regulatory authorities and standard setters in Indonesia. Research limitation: This study focuses on measuring the extent and the determinants of voluntary graphics disclosure practices among 197 local governments in Indonesia. Hence, the sample of this study is limited to the local governments employing graphics in providing information in their financial statements for the year 2015.

Moderating effect of internal control system to determinants influencing the financial statement disclosure

This study examines whether the internal control system moderates the relationship among budget expenditure, government size, legislative size, and audit findings on financial statement disclosure in Indonesia. This is a quantitative study that uses the purposive sampling technique to collect data from 240 local governments in Indonesia. Data were analyzed using Structural Equation Modelling (SEM) with Smart PLS. The results show that government size, legislative size, and audit findings had a positive and significant effect on financial statement disclosure, whereas budget expenditure does not. In addition, the findings revealed that the internal control system moderates the relationship between government size and legislative size and financial statement disclosure, but not by audit findings. The study contributed to extending the institutional and agency theory that explains these factors toward disclosure in the local government in Indonesia. The findings suggest that Indonesia’s local governments consider potential factors regarding increasing pressure to carry out disclosure of financial statements, as well as increasing the proper disclosure required by applicable Indonesian regulations.

International Financial Reporting Standards Compliance, Disclosure and Relevance of Financial Statements as Perceived by Investors with Regards to their Decision Making

Purpose: The purpose of this research was to investigate the International Financial Reporting Standards (IFRS) compliance, disclosure and relevance of financial statements as perceived by investors with regards to their decision making. Design/Methodology/Approach: Since the study based its findings on perceptions of investors, a concept that cannot be defined with certainty and is not constant since it varies due to factors such as regulatory framework, country polies, investor experience, technological factors, just to mention a few, the regression model was used to portray the relationship between investment decision making and financial reporting relevance, credibility/reliability and quality of disclosures Findings: Corporate governance, audit form reputation, audit committee and company size have a great impact on IFRS compliance and disclosure in financial statements. Verifiability and understandability help to improve IFRS Disclosure and Financial Statement Relevance. Relevance is considered an important attribute of quality financial information in decision making. Practical Implications: Investors need to make effective and informed decisions on investment. For this to be possible, information provided in the financial statements has to be relevant and faithfully represent the substance of what it purports to represent. Companies should practice voluntary disclosure on information items that influence investment decisions and be required to give a simplified interpretation of the information contained in the annual reports. Originality/Value: The analysis will assist investors in better judging the disclosure and relevance of financial statements of organizations from a thorough knowledge of the two aspects so as to make more informed decisions

Company Size, Profitability, and Growth on Abnormal Stock Return with Carbon Emission Disclosure

The capital market is an alternative investment that provides investors with the opportunity to earn profits, which is known as stock profits. The more desirable a stock will cause abnormal stock returns, namely the difference between the actual profit and the expected profit. Carbon Emission Disclosure (CED) in financial statements is one of the drivers that affect stock prices on stock returns. Several factors that influence the disclosure of carbon emissions, namely the company size where larger companies have higher pressure than small companies, so companies will increase information disclosure to build a good social image and gain legitimacy as part of the company's business strategy. Disclosure of carbon emissions can be used as a form of company effort to gain legitimacy and a good image in the eyes of stakeholders, profitability provides companies with resources to gain public confidence that business profits can be made in line with disclosure of carbon emissions, and company growth shows carbon emission information is able to provide confidence in stakeholders on the company's sustainable prospects in the future. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. The sampling technique was carried out using purposive sampling which resulted in 240 samples from 2018-2020. The tool used to test the hypothesis uses Path Analysis with SPSS version 22. The results show that company size, profitability, and company growth have a positive effect on CED, while CED has a negative effect on abnormal stock returns, company size and company growth have positive effect on abnormal stock returns, while profitability has no positive effect on abnormal stock returns.

Analysis of Capital Relationships and Financial Statement Disclosures on the Net Profit Margin of Insurance Companies

The survey results on disclosure of financial statements, there were managers who did not disclose their 
 intangible assets. Judging from the development of financial accounting standards No. 19 which states 
 that not many companies have disclosed it. The phenomenon develops along with these standards. The 
 research objective is to assess the intellectuals of this standard. The purpose of this study is to analyze 
 capital relations and disclosure of financial statements on the margin on net income. The objects of this 
 research are eleven insurance business units. Collecting data from reference books and journals as well 
 as financial statement. Analysis of the data used with the help of partial tests and concurrent testing. 
 Based on the processed data, relationship capital has no impact on margins. Meanwhile, disclosure of 
 financial statements has an impact on net income. And the results together have an effect on the margins 
 on net income.

The Effect of Regional Income, Leverage, Regional Property on Internet Financial Reporting Disclosure

This study aims to analyze the effect of local revenue, leverage, local government wealth on the disclosure of web-based local government financial statements. The population and sample of this study are the regional government financial reports of Central Java Province which consist of 29 districts and 6 cities for the 2015-2018 fiscal year which have been audited by the BPK. The analysis method uses a multiple regression panel data model with the Eviews 9 application. The results of this study indicate that local revenue and general allocation funds have a significant positive effect on the disclosure of web-based local government financial reports. However, the wealth of the local government in turn has a negative effect on the disclosure of web-based local government financial reports. Meanwhile, leverage has no effect on the disclosure of web-based local government financial statements. The results of this study can be used as a consideration for the government informing regulations, rewards, and sanctions in order to increase the transparency of digital financial reports.

Unpacking the IFRS Implications of COVID-19 for Travel and Leisure Companies Listed on the JSE

Purpose: The main purpose of this article is to study the IFRS implications of COVID-19 for selected travel and leisure companies listed on the JSE. The article investigates how these selected companies disclose financial information regarding the going concern, or in other words; the sustainability of the company, revenue of the company, how the companies made estimations, and more, to account for the impact of the coronavirus pandemic on their financial information. Design/methodology/approach: content analysis was used to analyse the financial statements of ten travel and leisure companies listed on the JSE. This analysis indicated what additional disclosures these companies have in the light of COVID-19. Findings: even though there is no specific IFRS standard providing guidance on the impact of COVID-19, the findings reveal that the companies took utmost care in disclosing information and the impact of COVID-19 in the financial statements. Companies cautiously considered the impact of the coronavirus on their financial results and provided the users of these financial statements with transparent financial information, regarding going concern and sustainability of the company, revenue, estimations, and more. Originality/value: a new economic crisis, different from any other economic crises, emerged as a result of COVID-19 and the IFRS implications such as, the effect on sustainability and going concern, impact on revenue of companies, financial estimations during the coronavirus pandemic, the effect of COVID-19 on the financial subsequent events and other financial statement disclosures is still unclear. This study is deemed of vital importance as the users of financial statements require all the necessary information about how COVID-19 has affected these companies, and whether or not these companies will be sustainable in the foreseeable future, as to enable the financial statement users to make informed financial decisions.

The contributing factors of intellectual capital disclosures in agriculture and mining sectors of Indonesia and Thailand

PurposeThis study aims to examine the factors affecting intellectual capital disclosure (ICD), especially in the agriculture and mining sectors in Indonesia and Thailand. Additionally, this study discusses the difference in ICD levels between Indonesia and Thailand.Design/methodology/approachThe sample used is companies listed on the Indonesia Stock Exchange and Stock Exchange of Thailand from 2013 to 2017. The method used is a content analysis of 380 annual reports (150 from Thailand and 230 from Indonesia). This study uses a panel regression model. Variables tested are firm size, market shares, minority shareholders, profitability, leverage and the focus on ICD components such as human capital disclosure, structural capital disclosure and relational capital disclosure.FindingsIC disclosures in financial statements are generally oriented to past events and focus more on the human capital component. Overall, ICDs in Thailand are more qualified than in Indonesia. The findings support the stakeholder and legitimacy theories. It was found that the greater the company’s resources, the higher the quality of disclosure of all intellectual capital (IC) components. Conversely, when associated with the position in the market, companies reduce the disclosures. As the company has gained the government’s legitimacy, management’s passion for revealing more about its ICD is diminishing.Research limitations/implicationsThis study focuses on the agriculture and mining sectors in Indonesia and Thailand. The annual report is the primary medium to observe IC in qualitative and quantitative ways, yet firms would use other means to disclose their IC. This study deploys the content analysis method, in which the determination of scores is based on the researchers’ judgment.Originality/valueThis study contributes to the ICD-related literature by focusing on the agriculture and mining industries and multinational scopes. The ICD valuation is extended to the quality of disclosures, in which numerical and monetary figures also support the disclosures. This study also examined minority shareholders’ role in ICD quality, which is infrequent in ICD literature.

Limits of private firms’ disclosure avoidance – Evidence from enforcing financial statements publication in Germany

In 2006 Germany strengthened the enforcement of mandatory financial statement disclosure for private firms. Since the law enforced disclosure but not its quality, we examine whether firms forced to disclose reduced financial reporting quality, for example to prevent competitors and other parties from inferring profitability, liquidity and other negotiation relevant information in time. We use proprietary data by the Deutsche Bundesbank, which covers information about firms that did not disclose financial statements before the law. Analyses based on differences-in-differences, regression discontinuity and PSM extend prior studies and suggest that firms did not significantly reduce financial reporting quality. These findings are potentially relevant for regulators as they document limits of private firms’ disclosure avoidance and emphasize the benefits of disclosure.