Recognition Of Assets Research Articles

Accounting for Intangible Assets: Suggested Solutions

Current accounting practice expenses many investments in intangible assets to the income statement, confusing earnings from current revenues with investments to gain future revenues. This has led to increasing calls to book those investments to the balance sheet. Drawing on the relevant research, this paper proposes solutions for the accounting for intangible assets that contrast with balance sheet recognition, and compares them to current practice and the IFRS standards that dictate practice. Key is the recognition that an accounting solution comes from a double-entry system which produces an income statement as well as a balance sheet, and that has features that both enable and limit the information that can be conveyed about the value in intangible assets. In this system, asset recognition in the balance sheet must consider the effect on measurement in the income statement, for the income statement conveys value added to investment on the balance sheet. A determining feature is uncertainty about investment outcome and how that affects the income statement, so our solutions centre on accounting under uncertainty. Two other accounting features are added: There has to be an investment expenditure for balance sheet recognition and that expenditure must be separately identifiable from transactions. These features rather than the tangible-intangible asset dichotomy lead to the prescribed solutions.

Commercial lender judgments and fair-value recognition: an investigation into the impact of future accounting standards

PurposeThis paper examines the impact that fair-value recognition of non-financial assets has on the judgments of commercial lenders.Design/methodology/approachCommercial lenders, who were attending a national banking conference, participated in a controlled experiment.FindingsThe experimental results show that commercial lenders incorporate fair values into their judgments but only when this information is recognized (vs disclosed) on the financial statements. Additionally, lenders assigned the highest loan interest rates when recognized fair values increased net income, and they assign the lowest loan amounts when recognized fair values decreased net income.Research limitations/implicationsTypical limitations regarding behavioral experiments are acknowledged in the paper. For example, the commercial lenders in this study could not request additional information. In addition, because of the difficulty in obtaining these participants, the sample size is relatively small.Practical implicationsUS Generally Accepted Accounting Principles (GAAP) does not allow the fair-market valuation for most non-current assets while International Financial Reporting Standards (IFRS) require such valuations. The article adds to our understanding about how a significant user group of financial statements, commercial lenders, view GAAP and IFRS accounting.Social implicationsThis article provides insights regarding how commercial lenders' decisions may change based on accounting principles related to asset valuation. Obtaining credit through loans has significant implications for society.Originality/valueThis article is unique because it examines commercial lenders' judgments using different asset valuations on the financial statements.

Analisis Perlakuan Akuntansi Asset Biologis Berdasarkan PSAK 69 Pada Organisasi Simantri Kelompok Tani Ternak Sapi “Sato Amerta Utama”

Biological assets are assets in the form of animals or plants undergoing transformation, resulting in qualitative and quantitative changes. The application of biological assets to date has not been widely used by entities engaged in livestock entities, even though the PSAK 69 standard is active in Indonesia on January 1, 2018. This research was conducted to determine the accounting treatment of biological assets in the Simantri organization Sato Amerta Utama cattle group , Baluk Village based on PSAK 69. The purpose of this study was to determine the measurement, recognition and disclosure of biological assets in Simantri Sato Amerta. This research was conducted using qualitative methods. Data obtained from interviews, observations and documentation. Furthermore, the data from these results are analyzed by data reduction, data presentation and conclusion drawing.This research aims to understand the accounting treatment of biological assets based on PSAK 69 in the Simantri organization of the Sato Amerta Utama cattle group in Baluk Village based on PSAK 69. In this study, to get the data validity is done by triangulation. Achievements in this research show that related to the measurement, recognition and disclosure of biological assets in Simantri Sato Amerta Utama is not fully in accordance with applicable standards, namely PSAK 69. See from the measurement still uses historical costs as acquisition prices and recording is still simple.

Reporting Biological Assets on SAK-ETAP Perspective (A Case Study on Dairy Cattle Farming in Dairy Farming in Oro-Oro Ombo Village, Batu City)

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.

Financial instruments for the development of the transport industry

The article analyzes the principles of using financial instruments established by International Financial Reporting Standards. It is shown that financial instruments have common approaches to the preparation of accounting financial statements according to both Russian and international standards. The features of using derivative financial instruments, which can be both instruments and objects of accounting in transport organizations, are disclosed. The main method that takes into account compensation for losses on existing assets and liabilities and income from concluded transactions with derivative financial instruments is analyzed. We consider hedge transactions in which the cash flows of hedging instruments and hedge operations are accounted for simultaneously and reflect the principle of accounting for hedging relationships. The conditions for performing operations with derivative financial instruments and accounting options for hedge transactions are analyzed. The rules for accounting for derivative financial instruments when hedging fair value and cash flows are disclosed. Examples of fair value hedging and future cash flows are provided. The article describes the indicators of asset recognition and criteria for derecognition of an asset. The new requirements of IFRS 9 for derecognition of an asset are analyzed and examples of their use are provided

Professional success as a criterion for assessing efficiency of football clubs’ intellectual capital management

In response to the latest realities and patterns of economic relations, intellectual capital confidently received the status of the fourth factor of production. Companies must maintain a high level of their intellectual capital management efficiency and its components to obtain and develop their competitive advantages. Since the vast majority of intellectual capital components do not meet the criteria for recognition of assets, current accounting system cannot reflect them in public financial statements. Therefore, for effective intellectual capital management purposes its assessment is carried out with a number of special methods. The aims of this paper are: 1) to establish how much you can rely on the assessment of intellectual capital efficiency, carried out by such Market Capitalization Methods as the Price-to-Book value (P/B ratio) and Tobin’s q, by comparing the obtained results with indicators of companies’ professional success; 2) determine the application prospects of particular methods of intellectual capital assessment, taking into account the level of their results reliability. For this purpose the TOP 50 UEFA Club Ranking was used and intellectual capital efficiency of football clubs was calculated for 2014–2018. The obtained results of intellectual capital efficiency assessment had not always correlated with the professional success rating. Therefore, the authors suggest using the Return on Assets Methods for assessment of companies’ intellectual capital efficiency.

Analisis Penerapan PSAK 71 Dalam Penyajian Cadangan Kerugian Penurunan Nilai Dan Kinerja Keuangan Perusahaan Perbankan

In 2020 companies in Indonesia have to implement PSAK 71 to replace PSAK 55. With the forward looking Expected Credit Loss approach in PSAK 71, profit of the banking industry has the potential to be declining because banks have to prepare Allowance for Impairment Losses since the initial recognition of financial assets. This study aims to find out the application of PSAK 71 in the presentation of allowance for impairment losses on banking companies in Indonesia and examine its financial performance using the CAMEL method. This research was conducted at CTBC Bank of Indonesia
 The type of data used in this study is secondary data which was obtained in the form of annual reports containing audit reports and other additional information. The analysis of the data is intended to find out whether the presentation of allowance for impairment losses at CTBC Bank is in accordance with PSAK 71 or not, and analyze the company’s financial performance
 The results of this study show that CTBC Bank of Indonesia has implemented PSAK 71 of allowance for impairment losses properly and the recalculation of impairment losses was in accordance with transitional provisions of PSAK 71 in 2017. This reduced the value of Bank’s CAMEL by 3,33 resulting from the decrease of net income and total assets. However, as of December 31, 2018 the company has succeeded in raising the CAMEL value to 85,55 and achieved a rating of healthy status from Bank Indonesia
 
 Keywords:PSAK 71, Impairment losses, CAMEL, financial instrument

Aspectos relevantes de la convergencia a NIC-SP en los bienes patrimoniales del sector público no financiero

Las Normas Internacionales de Contabilidad enfocadas al sector público (NICSP) emitidas por el Consejo de Normas Internacionales (IPSASB), constituyen estándares altos en la gestión de información financiera-contable. En la actualidad varios países del mundo han adoptado estos estándares, como es el caso de Ecuador. El presente estudio fue desarrollado en el Gobierno Autónomo Descentralizado Municipal de Azogues (GADMA), frente a la necesidad de reconocer y registrar los bienes patrimoniales en los estados financieros; el objetivo de la investigación consiste en plantear un proceso para la implementación de la NIC-SP 17 para el reconocimiento de los bienes patrimoniales. La metodología empleada en esta investigación fue de tipo no experimental y transversal, pues las variables se analizaron en su estado natural y en un solo momento del tiempo. En el diagnóstico se determinó la inexistencia de una norma específica que controle los bienes patrimoniales, su inventario fue levantado por última vez hace más de diez años por el Instituto Nacional Patrimonio y Cultural (INPC) y no por el GADMA, la gran mayoría de estos bienes no se encuentran bajo el dominio de la institución. Se concluye que con la implementación de la NIC-SP 17 se obtendrá información confiable para el reconocimiento de los activos de la Municipalidad los mismos que deberán ser registrados en la cuenta de Bienes de Patrimonio Nacional Histórico Artístico y/o Cultural como es el caso del cementerio Municipal, el Museo Rodrigo Pesántez y la Quinta San José; con ello la entidad presentará estados financieros razonables.

IMPLEMENTASI AKUNTANSI AGRIKULTUR PADA PERUSAHAAN SEKTOR PERTANIAN DI INDONESIA

This study aims to review the implementation of agricultural accounting in Indonesia Agricultural Sector Companies. The research method used in this study is a qualitative method using content analysis. The data taken as the object of study are all the company's 2016-2018 annual financial statements which are the periods before and after the effective effect of PSAK 69 and PSAK 16 on agricultural sector companies listed on the Indonesia Stock Exchange. The objects are 14 companies. The results suggest that in the accounting treatment of biological assets and agricultural products, none of the companies implemented the early adoption of PSAK 69 (2015) and apply accounting treatment in accordance with PSAK 69 in 2018. Related to biological assets in the form of productive plants, almost all companies have applied accounting treatment in accordance with PSAK 16 (revised 2015). The effectiveness of PSAK 69 (2015) provides significant changes to the accounting treatment of biological assets owned by companies, especially related to agricultural products. The treatment has an impact by increasing the company's assets by recognizing agricultural products as biological assets that were not previously recognized and recorded by the company. Meanwhile, related to biological assets in the form of live animals and edible plants that had been previously recognized by the company, there was a change in measurement using fair value fewer costs to sell, thereby affecting fluctuations in the company's profit and loss. The entry into force of PSAK 69 (2015) also uniforms the recognition and measurement of biological assets by companies.

La investigación sobre contabilidad gubernamental en América Latina. Perspectivas para avanzar

O objetivo deste estudo é estabelecer algumas perspectivas para avançar no desenvolvimento de pesquisas em contabilidade governamental na América Latina, tomando como referência uma análise crítica da produção científica do período de 2000 a 2018. Nesse sentido, com base na revisão de as publicações acadêmicas especializadas em gestão e contabilidade determinaram um conjunto de 260 artigos nos quais foram examinados parâmetros bibliográficos e de conteúdo, como a metodologia utilizada, as áreas temporal, geográfica e organizacional abordadas, as áreas temáticas tratadas, entre outras. De maneira geral, verificou-se que aproximadamente 45% dos documentos examinados se concentravam na discussão de questões regulatórias relacionadas às práticas contábeis e orçamentárias e sua convergência com os padrões internacionais. Portanto, as perspectivas de progresso poderiam ser orientadas para tópicos como a utilidade das informações financeiras (reconhecimento e valorização de ativos públicos e intangíveis) e informações não financeiras (aspectos sociais e ambientais), apoiadas em escopos temporais e geográficos mais amplos, maior evidência empírica e uma melhor compreensão da natureza e finalidade de várias organizações, como entidades fiscalizadoras, universidades, hospitais e empresas estatais.

Pengakuan, Pengukuran, Dan Penyajian Aset Biologis pada PT. XYZ (Peternakan Sapi)

Final Project Report aims to explain whether the recognition, measurement and presentation of biological assets at PT XYZ is in accordance with the accounting standards set by PSAK No. 69. The source of data for writing this final project report is secondary data using the documentation data collection method. The data analysis method used by the author in preparing the final project report is a descriptive method with a quantitative approach. The author discusses the recognition, measurement, and presentation of biological assets at PT. XYZ whether it is in accordance with accounting standards in force in Indonesia, namely PSAK No.69. There are differences in recognition, measurement and presentation according to PT. XYZ and PSAK No.69 must be adjusted.

An Evaluation on The Recognition of Bitcoin and Derivative Assets in Accounting

Blok zincir (Blockchain) teknolojisinin bir ürünü olarak ortaya çıkan Bitcoin ve türevi kripto paralar son on yılın en önemli ekonomik yeniliğidir. Bitcoin, eşler arası veri paylaşım ağını (Peer-to-Peer) temel alan, merkezi bir otorite tarafından kontrol edilmeyen (decentralized), kamuya açık hesap kaydı tutma özelliğine sahip (PublicLedger), temelde online ödeme yapmayı sağlayan sanal bir para birimidir. Bitcoin, kripto paraların ekonomik olarak tanınmasında temel teşkil etmiştir. Bununla birlikte günümüzde genel veya özel fonksiyonlu pek çok Bitcoin türevi (Altcoin) kripto para birimi geliştirilmiştir. Kripto paralar her geçen gün daha fazla sayıda ticari işlemde kullanılmaya başlanmıştır. Kripto paralarla yapılan işlemlerin nasıl muhasebeleştirileceğine ilişkin henüz belirgin bir düzenleme bulunmaması farklı yaklaşımları da beraberinde getirmektedir. Bu çalışmanın amacı, mevcut yaklaşımlar ışığında kripto paraların nasıl muhasebeleştirilebileceğini tartışmaktır.

New Definitions for the Notions “Asset” and “Liability” in the Conceptual Framework for Financial Reporting: Reasons and Consequences

The purpose of this article is to investigate the evolutionary logic of defining assets and liabilities under the influence of changes in the Conceptual Framework of Financial Reporting, the causes, and consequences of these changes in a consistent understanding by developers and practitioners.
 The evolutionary changes in the definitions of assets and liabilities in the Conceptual Framework of Financial Reporting and the reasons that led to these changes have been investigated. The reasons are different interpretations of probability and expected benefits; and asymmetric asset and liability identification. The expediency of interpreting an asset as a current economical resource that is controlled by an entity as a result of past events and the obligation as a current obligation of the entity to transfer an economic resource as a result of past events have been interpreted. Found different formulations of these interpretations encourage a rethinking of past practices and move towards the symmetry of assets and liabilities identification. The new criterion for defining obligatory such as “no practical ability to avoid” complicates the goal of changes because it requires the use of additional valuation judgments in practice.
 Understanding of the probability threshold before and after changes in asset and liabilities definitions has been examined. It was found that the old asset and liabilities definitions have no bearing on the judgment as to whether the asset existence. Participants use a higher probability threshold in assets recognition than in liabilities recognition.
 The implications of the changes for a consistent understanding between setters and practitioners have been identified. In particular, new changes in asset and liability definitions improve the implementation of the IASB goals and better align participants' judgments with setters’ intentions. It is established that IFRS is now sufficiently complete to cover virtually all transactions and events within the scope of the direct standard, although it does not exclude the need to use the Conceptual Framework not only by the standards setters but also by experts, auditors, lawyers, scholars and economic students on economic faculties.

Asset-based recognition criteria: a comprehensive view

Purpose This paper aims to present a comprehensive view of the assets recognition criteria by providing a coherent set of pre-measurement themes that should be taken into consideration to be a candidate asset. Design/methodology/approach This paper is a conceptual review paper. Findings This synthesis review results in seven themes; the social constructionist nature of the conceptual framework (CF), the nature of assets, the changing nature of asset recognition, asset measurement bases, entity-specific vs market-specific recognition, the economic resource comprising “rights”, and finally, the role of “separability” in asset recognition. Originality/value With the increasing importance of internally created assets and their implications on the financial position of the business entity, and with coinciding of revisiting the CF for financial reporting (at the time of writing this paper), this paper shows a synthesis and comprehensive themes of asset-based recognition criteria for tangible and intangibles assets.

Recognizing Intergenerational Assets Within Religious Communities of Colour

Religious organizations within communities of colour have traditionally been ignored by educational institutions, even though they provide community cultural wealth and literacy assets. While churches are often considered as having nothing to do with school, intergenerational experiences fostered by religious networks positively influence academic achievement and should be considered. In an effort to confront the minority deficit myth and promote a responsive pedagogy, this literature-based position paper promotes the acknowledgment of religion’s role in the cultural makeup of many children of colour, and the recognition of the intergenerational assets within marginalized religious social networks.

Amalan Perakaunan Zakat di Majlis Agama Islam Negeri Terpilih

The absence of a specific standard for zakat accounting has led to the inconsistency of zakat accounting practices by zakat administrators in Malaysia. Zakat administrators are alleged to have transparency issues in the zakat-related administrative affairs. The purpose of this article is to examine the accounting practices for the collection and distribution of zakat by the State Islamic Religious Council (SIRC). In turn, this article discusses accounting practices that aligned with generally accepted accounting conventions and comply with the Syariah requirements, which then be the basis for the development of zakat accounting standards. Data collection was conducted through analysis of the SIRC financial statements of 2016 and focus group discussions with officials of zakat administration and the accountants. The study found that all the selected SIRCs adopt fund accounting. They use cash accounting in the event of zakat transactions. Zakat collection is the revenue for the Zakat Fund (ZF) under the fund accounting. Direct (consummative) distributions as an expenditure of ZF in all the selected SIRCs. However, there are differences in accounting for productive zakat distributions involving capital expenditure (i.e. assets). Three SIRCs accounted for it as an expenditure (operations) of ZF and no recognition of assets. Keywords: zakat, income, expenses, State Islamic Religious Council, MPSAS

Accesibilidad y transparencia en la información pública gubernamental

Se interpreta que la información gubernamental debe ser expuesta a la legislatura, los órganos de control y a la ciudadanía con el fin de rendir cuentas de lo actuado y deberá permitir, entre otros aspectos, la evaluación de gestión de quienes tienen la responsabilidad de administrar recursos públicos. En nuestra opinión, existe una relación muy importante entre la transparencia en la rendición de cuentas y la gobernanza. Enfatizamos la importancia de incorporar mejores prácticas de gobierno corporativo en el sector público, como generador de valor en la dirección, control de gestión y administración de riesgos en la toma de decisiones a nivel de gobierno central, así como también en las empresas estatales.
 Es por ello que resulta confuso encontrar por un lado normativa emanada de la Secretaría de Hacienda de la Nación (Resolución 25/95 de la SH) que define activo utilizando conceptos perimidos, los que ignoran al patrimonio natural y cultural. Por otra parte, la misma Cuenta de Inversión hace referencia a la transparencia en la rendición de cuentas y también se explican los conceptos que posibilitan que los diferentes usuarios generen las capacidades necesarias para el entendimiento y posterior análisis de las cuentas públicas, para cuya elaboración, entendemos, ignora un patrimonio significativo.
 Si bien en un Estado Constitucional la transparencia a través del acceso a la información pública es considerada uno de los pilares basales del sistema democrático y republicano de gobierno, de investigaciones preliminares surge que existe falta de integridad en la información al no presentar en la Cuenta de Inversión el patrimonio natural y cultural. Es la hipótesis de este estudio que de las normativas referidas al derecho de información pública y administración financiera y de los sistemas de control del sector público nacional, entre otras, surge la necesidad de incorporar los avances en la doctrina y tecnología contable para aportar a la accesibilidad y transparencia de la información pública gubernamental. Es el objetivo aportar a la adecuación y/o actualización de la información pública gubernamental en lo referido al patrimonio natural y cultural para mejorar su accesibilidad y transparencia y, con ello, contribuir a conocer objetivamente las potencialidades con que cuenta el país.
 Se realiza una investigación teórica. Se tiene en cuenta que la definición de activo de la Resolución 25/95 de la Secretaría de Hacienda de la nación debe ser actualizada y se seleccionan, entre otras, el derecho de acceso a la información pública (Ley nº 27.275 Derecho a la Información Pública y la Ley nº 25.831 sobre el régimen de libre acceso a la información pública ambiental); la gobernanza y el patrimonio natural y cultural (Ley nº 24.156 de Administración Financiera y de los Sistemas de Control del Sector Público Nacional, orientaciones de la Comisión Económica para América Latina y el Caribe -CEPAL- y de la Organización para la Cooperación y Desarrollo Económico -OCDE-) y los principios políticos normativos answerability y enforcement. Se realizan análisis críticos y comparativos y se infieren conclusiones. Entre las conclusiones se expresa que se requiere la construcción de un puente entre la normativa vigente y los criterios más a avanzados en cuanto a reconocimiento, medición y exposición de elementos del patrimonio para el Sector Público, respetando en todo momento el espíritu que debe regir a la Contabilidad Gubernamental para representar acabadamente la realidad económica y social de los respectivos Estados.

ROLE OF FINANCIAL REPORTING IN DECISION-MAKING IN ORGANIZATIONS

This article discusses the role and analytical capabilities of financial statements in making management decisions, since financial statements must faithfully reflect the financial position, financial results and cash flow of an enterprise, which requires truthful reflection of completed operations, other events and conditions in accordance with the definitions and criteria recognition of assets, liabilities, income and expenses. The value of financial statements is that it is the information base of financial analysis and audit. Therefore, the reliability of all objects reflected in the account, is a necessary condition in the preparation of accounting and reporting information, both on the property status of the enterprise, and on the results of its activities.

Steps to benefit from social prescription: a qualitative interview study.

The popularity of social prescribing has grown in recent years following a series of high-profile recommendations in scientific reviews, political reports, and media coverage. Social prescribing has the potential to address multiple health and social problems, but few studies have examined how it works. To explore the ways by which social prescribing may be beneficial to individuals undertaking socially prescribed activity (SPA). A qualitative interview study involving people attending a range of SPA. Participants were purposively recruited from a multi-activity social prescribing provider. Data were collected using semi-structured face-to-face interviews. Analysis used a thematic approach, in which emerging themes were contextualised with interview transcripts and findings from existing literature. The study identified five themes, which together formed a journey of engagement and participation. While not always present for any one individual, the themes occurred in a consistent order: receiving professional support for social problems; engaging with others through participation in SPA; learning different ways to relate to other people and developing new skills; changing perceptions by realising personal assets and becoming open to the possibility of new futures; and developing a positive outlook on the present while moving forwards in pursuit of future goals and better health. SPA appears to benefit individuals by a process that begins with personalised professional help to address social problems and moves through engagement with activities and others, to the recognition of personal and social assets and opportunities.

Bringing an Action on Recognition of Unjustified Assets and their Forfeiture: a Right Provided by Law or Mistake of a Law Maker

Bringing an Action on Recognition of Unjustified Assets and their Forfeiture: a Right Provided by Law or Mistake of a Law Maker