Recognition Of Revenues Research Articles

ANALISIS DAMPAK RENCANA PENERAPAN ISAK 16: PENYELENGGARAAN PRASARANA KERETA API RINGAN/ LIGHT RAIL TRANSIT

The purpose of this research is to analyze the impact of the implementation plan of ISAK 16 by KAI, the other purpose of this research is to discuss what issues might be faced by KAI in the plan to implement ISAK 16. This type of research is qualitative research using descriptive research method. The study found that the implementation plan of ISAK 16 by KAI will have an impact on accounting problems, the problems that will be faced are the problems of revenue recognition to construction services, the decline in the value of intangible assets and the recognition of fixed assets. Based on the impact of the implementation plan of ISAK 16 by KAI, the recognition of revenues to construction services can be fiscal corrected, the decline in the value of intangible assets can be minimized by continuing to generate future cash flows from subsequent use of assets or other assets and ask for clarification and affirmation to Dewan Standar Akuntansi Keuangan (DSAK) on the issue of recognition of property and equipment.
 Keywords: Infrastructure, Concession Agreement, Light Rail Transit

Analysis Of Application Of Psak No. 34 (2015 Adjustment) Above Recognition Of Income And Expenses Pt Duta Borneo Madani


 Abstract—The study aims to determine the recognition of revenues and expenses at one of the growing construction companies in Indonesia named PT Duta Borneo Madani accordance with standar principles of Statement of Financial Accounting Standards or PSAK No. 34 with an adjustment in 2015. The research model uses Percentage of Completion Method Kieso, Weygandt, and Warfield with the cost method (Cost to cost). This study uses primary data obtained from the collection of interviews of respondents as many as three people as accounting and finance practitioners, and policy makers who influence the progress of the increase in revenues and expenses in the corporate environment.In addition, secondary data were also obtained interpretation of data from the primary data of previous studies, books, or reference support obtained from the journal. The data analysis in this research use descriptive qualitative data analysis techniques model of Miles & Huberman. A summary of this study, the first, the results of revenue and expenses recognized companies differ significantly from the methods that result from PSAK No. 34 (Adjustment 2015), it affects the different profit. Second, there are differences in the journal entries of revenues and expenses, as well as the effect on revenues and expenses where the completed contract method of revenue and expenses do not reflect the real situation, in contrast to the percentage

Response to the GASB's Invitation to Comment onRevenue and Expense Recognition: Project No. 4-6I

ABSTRACTThe objective of the Governmental Accounting Standards Board's (GASB) Revenue and Expense Recognition Project is to develop a comprehensive model for classification, recognition, and measurement of revenues and expenses for governmental entities. A conceptual framework would provide a basis for evaluating revenue and expense recognition, provide guidance regarding exchange and exchange-like transactions that have not been specifically addressed, and improve the consistency of financial reporting for decision making and the assessment of accountability. The GASB issued an Invitation to Comment (ITC No. 4-6I) in January 2018 to seek feedback regarding the classification and recognition of revenue and expense transactions, excluding the issue of measurement as it will be addressed in a subsequent phase of the project. The GASB proposed two models developed by a task force at an earlier stage in the project: an exchange/nonexchange model and a performance obligation/no performance obligation model. This commentary provides the response submitted to the GASB from the Accounting and Auditing Standards Committee of the Governmental and Nonprofit Accounting Section of the American Accounting Association. In addition, directions for future research are discussed.Data Availability: Details regarding the GASB project can be found on its website at: https://www.gasb.org/jsp/GASB/Document_C/DocumentPage?cid=1176169978401&acceptedDisclaimer=true

Consignment Income Recognition and Measurement in Indonesia Retail Companies

<p>This study aims to review the consignment income recognition and measurement from the consignee. Up to now, there is no specific Indonesia Statement of Financial Accounting Standards (hereinafter referred to as PSAK) that regulates the recognition, measurement, and disclosure of consignment revenues. The PSAK used in this study refers to PSAK 23, 2017 on Corporate Revenues.</p><p>The research method used in this research is qualitative descriptive by comparing data obtained from direct observations in a company with theories and financial accounting standards related to consignment income. The population used in this study is the financial statements of 2017 from the retail sub-sector companies listed on the Indonesia Stock Exchange (IDX). Based on the examination of 93 companies regarding consignment transaction information, this study obtained a final sample of 10 companies. This paper analyzes the application in the consignment income recognition and measurement in retail companies to further examine its suitability with revenue recognition by PSAK 23, 2017.</p>This study finds that the retail sub-sector companies have some similarities in recording consignment revenues and have obediently made disclosures related to consignment sales revenue following PSAK 23, 2017 even though there was no specific PSAK regulating consignment.

International Financial Reporting Standards (Ifrs) Convergence Effect To Accounting Conservatism

IFRS Convergence (International Financial Reporting Standards) is to adapt domestic standards to conform to IFRS (International Financial Reporting Standards). Implementation of accounting standards closely related to the selection of accounting methods. Each accounting method has a different level of conservatism. Conservatism is an attempt to choose acceptable public accounting methods that slow down the recognition of revenues, accelerate the recognition of expenses, lower the valuation of assets, and elevate the assessment of debt. This research is important to be done in an attempt to prove empirically an increase in accounting conservatism in the period after the convergence of International Financial Reporting Standards (IFRS), when compared to the period before the convergence of International Financial Reporting Standards (IFRS). The sample used in this research is PT. Indofood SuksesMakmur, Tbk with the observation period of 2010-2014. Paired-samples T-Test analysis will be used with SPSS (Statistical Package for Social Science) program Version20.Study results shows that with the implementation of a financial accounting standards (IFRS Convergence) indicating a significant differences to Accounting conservatism value in PT. Indofood SuksesMakmurTbk.

The Extent to Which Contracting Companies in Kuwait Comply with International Accounting Standards from the Point of View of the Internal Auditors

The study aims to demonstrate the degree to which contracting companies in Kuwait comply with the requirements of IAS 11 in terms of applying accounting disclosure requirements and applying the requirements for recognition of revenues and expenses of construction contracts. The study group consists of Kuwaiti contracting companies in the first category. The sample of the study consisted of accountants and internal auditors in contracting companies. The contracting companies in the State of Kuwait apply the requirements of accounting disclosure for construction contracts in accordance with the requirements of International Standard No. 11, and the contracting companies in the State of Kuwait apply the requirements for recognition of the revenues and expenses of construction contracts in accordance with the requirements of International Standard No. 11. The most recommendations: The necessity of contracting companies in the State of Kuwait to disclose the methods used to determine the level of completion of construction contracts under implementation, which helps in the application of full disclosure of construction contracts in addition to the possibility of integration of information elements of the financial statements. And the contracting companies to disclose the total amounts due to customers for the work of construction contracts as an asset within assets.

The Impact of Transition to the Application of IFRS 15 Recognition of Revenue from Contracts with Customers A Case Study Jordan Telecommunication,s Company Orange

The study aims to examine the effect of transition to the application of IFRS 15: recognition of revenues from contracts with customers in Jordanian telecommunications’ companies, as a case study it was conducted in Jordan Telecommunications Company (Orange) for the period between 2010-2017, The researchers re-calculated the revenue of contracts with customers retroactively, and separate the goods’ revenues from services’ revenues, also calculate the assets from contracts at the end of each interim period for the quarterly progress reports for all periods of study. A number of statistical methods were used; the most important one is descriptive statistics, the natural distribution of data and testing the study hypotheses using the multiple regression equations to identify the effect of independent variables on dependent variables. The most important result of the study showed that there is a statistically significant impact at the level of (α ≤ 0.05) for the application of IFRS 15 as measured by the services' revenue , goods' revenue, and contract assets on total revenues and owner equity, The study recommended urging the telecommunications companies working in Jordan especially Orange to apply IFRS 15 for its impact to achieve transparency in disclosure, and to increase the reliability of accounting measurement of financial reporting.

ANALISIS PENGAKUAN PENDAPATAN DAN BEBAN MENURUT PSAK NO. 28 PADA PT. ASURANSI TRI PAKARTA CABANG MANADO

Uniformity in the preparation of a financial report needs to be done to get the results of a financial report is good and trustworthy. For that every company needs to implement the applicable accounting standardization in order to create information that is easily understood by users of information. In a financial statement of the most important is the recognition of revenues and expenses in accordance with the applicable standardization. The purpose of this study was to determine the recognition of revenues and expenses made by PT. Tri Pakarta insurance in accordance with the standardization that exists is under PSAK No. 28 about insurance. The method used is descriptive analytical method, which is a method of research based on the search data- data will then be analyzed and described later concluded in accordance with the purpose of this study. From these results it can be concluded that PT. Insurance Tri Pakarta has made the recognition of revenues and expenses that have taken the appropriate standardization of existing ie, revenue is recognized based on the contract effective or calculated in accordance with its useful life, and the burden of claims in connection with the events of loss to the insurance objects insured, covers claims approved (settled claims), claims in process (outstanding claims), claims incurred but not yet reported and claim settlement expenses (claims settlement expenses), recognized as an expense claim when there is an obligation to meet claims or losses when the report came up.Keywords : Revenues, Expenses, Insurance, PSAK NO. 28

The importance of professional judgement applied in the context of the International Financial Reporting Standards

Guidance has always been welcome in terms of applying professional judgement in the context of the principles-based accounting standards – International Financial Reporting Standards. This fact is the result of the complexity and diversity of some situations, which might give rise to difficulties in terms of choosing the appropriate accounting policies and methods (depreciation, inventory valuation on hand at the end of an accounting period, the recognition of revenues and expenses from a construction contract, accounting for lease contracts by the proper determination of the type of lease: financing or operating), and respectively the need to verify if the criteria set by the principles-based accounting standards are met. This “freedom” of choice and disclosure might create problems in terms of accounting information quality. The possibility to select accounting methods based on the Standards’ provisions is meant to generate a true and fair view of the company’s financial position and financial performance. In these cases it is recommended to use professional judgement in order to reach a conclusion which is in accordance with the accounting principles and is not enforced by any accounting rules, since the exercise of individual professional judgement is preferred against the “pure” compliance with prescriptive legal requirements.

ANALISIS PENGAKUAN PENDAPATAN DAN BEBAN PADA PT.PEGADAIAN (PERSERO) CABANG MEGAMAS

Companies are required to arrange their financial statements because it is the important basis to determine the recognition of revenues and expenses in accordance with the applicable rules. The research object in this case is PT. Pegadaian (Persero) Megamas Branch. The purpose was to determine and evaluate the implementation of the recognition of revenues and expenses in PT. Pegadaian (Persero) Megamas Branch. Data analysis is using qualitative method. The type of data is using primary data. Source of the data is using documentation method. This study found that the company adopted PSAK No. 23 (Revised 2010), Revenues, which identifies the fulfillment of the criteria of revenue recognition, the recognition of revenues and expenses done by using the accrual basis, and measurement of revenue recorded by the cash receipts in accordance with PSAK No. 23, paragraph 8.

ANALISIS PENGAKUAN PENDAPATAN DAN BEBAN SERTA PENGARUHNYA TERHADAP KEWAJARAN PENYAJIAN LAPORAN KEUANGAN PADA PT MITRA ANDALAN SATKOMINDO

This thesis aims to determine the application of the recognition of revenues and expenses on the fairness of financial statements and whether the methods used are in accordance with the Financial Accounting Standards. Jakarta The method used is a qualitative research method. The data used in this research is secondary data (financial statement of PT Mitra Andalan Satkomindo Years 2013-2014). The results obtained by treatment of the recognition of revenues and expenses of PT Mitra Andalan Satkomindo said is not in accordance with Financial Accounting Standards because it still uses the cash basis method, whereby revenue is recognized when cash is received and expenses are recognized when cash is excluded. The conclusion of this research is PT Mitra Andalan Satkomindo has been applying cash basis method in the recognition of revenue and expenses not in accordance with Financial Accounting Standards. There are discrepancies in the presentation of financial statements because the company only presents the income statement only. Then there are also discrepancies in the treatment of the recognition of income and expenses Financial Accounting Standards with PT Mitra Andalan Satkomindo which resulted in 2013 PT Mitra Andalan Satkomindo experienced overstated Rp. 28.52 million and in 2014 also had overstated Rp. 40.35 million. Advice can be given by the author is better in terms of the recognition of revenues and expenses of PT Mitra Andalan Satkomindo using the accrual basis. Recording the recognition of revenues and expenses based on the cash basis is not appropriate with the Financial Accounting Standards for revenue and expenses are not recognized in a period should be. So as long as PT Mitra Andalan Satkomindo based on primary data obtained by the authors do not describe the accuracy of the financial information. With accrual transactions are recorded and reported on the events and not when cash is paid (received). In presenting the financial statements of PT Mitra Andalan Satkomindo should also make the Balance Sheet, Income Statement, Statement of Changes in Equity, Cash Flow Statement, and Notes to Financial Statements. Thus financial reports can provide accurate financial information about the financial position. Then the company must implement accrual basis at each recording transactions in order not to cause a disparate impact on the treatment of income and expenses that their income and expenses reported in the condition (overstated) than necessary.

The Relationship between the Complexity of the Industry, with Complexity of Recognition of Income and Expenses and Financial Variables

Main objective of this study was to evaluate the effect of environmental complexity of accounting on accounting errors listed in the Tehran Stock Exchange. In this study, we tried the complexity of the of recognition of income and and of industry activity based on Rayan et al. as independent variables to consider their impact on the dependent variable represented revenue and operating costs are examined. The population of the study listed companies in Tehran Stock Exchange during the years 2008 to 2012 and the sample size due to screening and then remove outlier observations, 143 company. In this study, the data panel (Panel) with fixed effects, the results of the analysis of corporate data using multiple regression at 95% of the show, between complexity of the process of the recognition of revenues and expenses with type of industry there is a significant relationship with the company. Keywords: complex accounting environment, the complexity of the process of the recognition of revenues and costs, type of industry

Lease revenue reporting on the side of lessor in connection with transfer of right to use assets (RTU) to lessee

The paper analyzed some of the approaches whose application is eligible for the recording of lease contracts on the side of lessor so that this recording display as closely as possible the essence of the lease relationship and at the same time it would be symmetrical to the way of recording on the side of lessee resulting not from value of transferred physical assets but from the evaluated right to use this asset. Impacts of individual variants of approaches into the income statement and statement of financial position are analyzed. It turns out that apparently it is not possible to apply only one approach (as it is in the case of lessee), without gross distortion of the financial position of the lessor. Some of the options of derecognition approach truly shows the situation, especially in long-term leases and leases where the risks and rewards associated with the lease are transferred to the lessee, for the other leases it is recommended sometimes to use underecognition property from the assets of the lessor during the lease period, but rather report a liability to leave to lessee to use (performance obligations approach). Compared with the current method of recording an operating lease, this approach without taking into account the cost of maintenance leads to another course of reporting profits (rise in the early stages against the growth in the final stages), but also brings a more fundamental problem, and it is overvaluation of lessor’s assets. In addition, it is possible to doubt about the correctness to report such liability as an unconditional liability. The approach is also not consistent with the IASB and the FASB project that is devoted to the recognition of revenues. The possible way, according to author’s opinion, might be regulation of existing model of reporting operating lease or derecognition approach.

Can corporate governance discipline opportunistic earnings management during IPO process?

This study investigates whether corporate governance can discipline opportunistic earnings management during IPO process and thus enhance long–run stock returns. Using a sample of IPOs in Taiwan, the study shows that there is a negative relation between pre–IPO discretionary current accruals (DCAs) and post–issue stock performance. These findings suggest that though corporate managers might mislead the market by accrual management during IPO process, such as accelerating the recognition of revenues or deferring expenses, issuers cannot always manipulate accounting discretion to sustain their earnings. Most importantly, the results of the study demonstrate that corporate governance can deter the abuse of accounting discretion during IPO process, and thus reduce potential losses of investors who were temporarily deceived by opportunistic earnings management. Notably, in family–controlled firms, increasing institutional ownership or the presence of venture capitalists will aggravate stock reversal due to earnings management, which is different from the supervising effect on non–family controlled firms.

Bilanzielle Kapitalerhaltung vs. Solvenztest Überlegungen zur Unternehmenserhaltung in der Internationalen Rechnungslegung (Balance Sheet Capital Preservation vs. Solvency Test Considerations for Companies in Maintaining the International Accounting)

Capital Maintenance contains various approaches in trying to protect the equity and assets of a company. One of the biggest and substantial threats for companies are paper profits and the recognition of unrealized revenues. The predominant issue of paper profit has been a challenge for research in accounting since the beginning of the 20th century. The demand for balancing under IRFS-regulations to determine the Distributive Profit of companies, listed in the EU, has brought up the issue of paper profit once again. The purpose of this thesis is to examine the predominant issue of paper profits, analyzing concepts, which will allow companies to avoid unrealized revenues to be recognized as distributive profit. Furthermore a theoretical framework for a capital maintenance profit distribution within IRFS and European Accounting regulations is established.In the theoretical part of this thesis the predominant issue of paper profit is analyzed by the examination of theoretical concepts on capital maintenance and the determination of profit. The concepts are presented as subject of a critical assessment to help comprehend the qualifications needed in avoiding unrealized revenues to be recognized as distrib-utive profit. The empirical part of this thesis focuses on the study of the EU-Commission on capital maintenance and alternative concepts of profit distribution. The results and insights from the study are combined by applying a structured content analysis. The results are interpreted to deduce a possible capital maintaining framework for IFRS avoiding un-realized revenues to be distributed. In conclusion, it was found that capital maintenance and determination of profit is in accordance with the concept of nominal capital. The legal implementation is made by certain accounting and valuation regulations and statutory dividend restrictions. The current concept of capital maintenance proved to protected only partially against the distribution of unrealized profits. As a possible framework for capital maintaining IFRS profit distribution, the implantation of a dividend lock is proposed. The dividend lock is a sub income account within the profit and loss statement. It separates realized revenues from unrealized revenues. Furthermore a solvency test for companies would hold the management of a company legally responsible for the distributed amount of profit. The solvency test would strengthen the creditor protection and cause a rather cautious distribution of profit. The recommended framework would be in accordance with current EU law and could be implemented in a rather-simple-manner.

Methods of Analyzing Companies' Performance in Accounting and Artificial Intelligence

The company's performance reflects its capacity of generating future cash-flows, by using existent resources, and the efficiency level in using new resources.The capacity of generating future cash-flows assumes that the company would have to book revenues of its activity, and the use of the existent resources needs a detailed overview of the expenses of the period. The revenues and expenses are elements strictly tied to the evaluation process of the company's performance. This paper seeks to emphasize the efficiency level in using resources dependent on the profit (when the revenues are higher than the expenses), or on the loss (when the expenses are higher than the revenues), their first-step evaluation in the accounting process, so that the next step would evaluate them through a professional specific processing system, in order to lay out the economic result by efficiently binding the two methods.The current paper will analyze only the recognition and evaluation of companies' revenues, with the help of the two criteria, when the revenues are higher than the expenses and therefore one will carry out an evaluation and analysis of the company's performance in this particular field.

Qualidade informacional e conservadorismo nos resultados contábeis publicados no Brasil

O artigo avalia a presença de conservadorismo nos resultados apresentados nas demonstrações contábeis publicadas no Brasil pelas sociedades por ação no período de 1995 a 2004. Realiza-se a pesquisa em virtude da constatação de que a regulamentação brasileira, de um lado, é enfática no estabelecimento de princípio ou convenção do conservadorismo - antecipar o registro de perdas e diferir o reconhecimento de receitas - e, de outro, permite o reconhecimento prematuro de receitas não realizadas, como é o caso da reavaliação de ativos. O trabalho testou a antecipação oportuna assimétrica de perdas econômicas através do modelo de Componentes Transitórios nos Lucros (BASU, 1997) e o conservadorismo condicional através do modelo de Associação entre Apropriações Contábeis e Fluxos de Caixa (BALL; SHIVAKUMAR, 2005). A amostra considera sociedades por ações com dados para a série temporal completa, regredindo-se os dados em painel segundo os métodos mais adequados. Os resultados confirmam a hipótese de que os gestores das empresas em questão não praticam o conservadorismo condicional, embora se constate reversão dos componentes transitórios do lucro em maior magnitude no caso de variações negativas do lucro antecedente.

Revenue Recognition in a Multiperiod Agency Setting

The principles that govern the recognition of revenues (and expenses) are the key determinants of the properties of accrual accounting information. This paper studies the revenue recognition question from a stewardship perspective. Our results show that it is optimal to carry products at their historical costs until revenues are realized. Revenues are considered realized when the amount of associated cash flows can be measured in an objective and verifiable fashion. In contrast, we demonstrate that mark-to-market accounting, although sensible from an equity valuation perspective, generally does not provide efficient aggregation of raw information to solve the stewardship problems. In particular, mark-to-market accounting based on anticipated performance of the manager does not necessarily induce the manager to actually deliver such performance. Our analysis also identifies situations where the realization principle needs to be modified with the asset valuation rule of lower-of-cost-or-market. Such results highlight that conservatism may be a desirable feature of accounting measurements for managerial performance evaluation purposes.

Tax-Induced Earnings Management by Firms with Net Operating Losses

This paper investigates tax-induced intertemporal income shifting by firms with net operating loss (NOL) carrybacks. For several years following the tax rate reductions of the Tax Reform Act of 1986 (TRA 86) these firms had incentives to shift recognition of revenues and expenses across years to increase their NOL carrybacks. By examining how NOL firms shift income and cross-sectional variation in the extent to which they do so, this research extends prior examinations of intertemporal income shifting by profitable firms (see Scholes, Wilson, and Wolfson [1992] and Guenther [1994]).1

The IASC comparability project: A cross-national comparison of financial reporting practices and IASC proposed rules

The International Accounting Standards Board (IASC) issued Exposure Draft 32 in 1989, which led to the revision of 10 international accounting standards (IASs), all of which substantially reduce the amount of choice available to companies when choosing which financial accounting practices to follow. This article assesses the extent to which the current financial reporting practices of 27 IASC member countries agree with the new international accounting standards. The results indicate that while the overall level of agreement with the revised standards is high, there are considerable differences both among issues and among countries. Companies in many countries will have to significantly change their accounting practices in certain areas if they are to comply with the new IASs. This is particularly true of companies in countries with code law-based legal systems and more conservative accounting practices. There is also generally less agreement over issues such as treatment of mergers, accounting for development costs, recognition of revenues on long-term contracts, treatment of differences due to the translation of the income statement at rates other than the closing rate, and changes in the costs of retirement benefits.