Statement Of Financial Accounting Standards Research Articles

Valuation Implications of FAS 159 Reported Gains and Losses From Fair Value Accounting for Liabilities

This study examines the economic implications of fair value liability gains and losses arising from the adoption of Statement of Financial Accounting Standards No. 159 (hereafter, FAS 159). We find a positive correspondence between a firm’s FAS 159 fair value liability gains and losses and current period stock returns, consistent with the notion that these gains and losses are priced by equity investors. However, further analysis indicates that fair value gains and losses from liabilities have a statistically significant negative association with future returns, suggesting that investors misprice this earnings component and subsequently correct the mispricing. We also find that the negative association for fair value gains is stronger for firms with lower levels of institutional ownership.

Accounting for inventory costs and real earnings management behavior

Prior research finds that managers engage in inventory overproduction to inflate current earnings despite the fact that overproduction is associated with significant economic costs. Additionally, Statement of Financial Accounting Standards No. 151 (SFAS 151) limited the fixed costs that can be capitalized to inventory in periods of low production, thereby introducing a penalty for underproduction by requiring firms to expense unallocated overhead in the current period. Because periods of underproduction often follow periods of overproduction, and because SFAS 151's emphasis on the subjective determination of normal capacity can erroneously categorize overproducing firms as underproducers in subsequent years, we posit that SFAS 151 makes overproduction less desirable than before. Therefore, we posit that management's propensity to use overproduction to meet earnings benchmarks should decrease after the adoption of SFAS 151. Consistent with expectations, we find a lower propensity to use overproduction to meet benchmarks following SFAS 151. These results challenge the view that SFAS 151 inadvertently encouraged overproduction.

A comparison between PSAK 71 and PSAK 55 in the banking industry

Economic activities ascending from the use of PSAK 55 (Statement of Financial Accounting Standards) are alleged to be the cause of the Indonesian bank system instability when facing the global financial crisis in 2008. PSAK 55 results in CKPN (allowance for impairment losses) allocation on a procyclical nature. Therefore, it is expected that PSAK 71 implementation avoids procyclical CKPN that does not reflect sustainable financial performance. The current study is conducted to test the effectiveness of PSAK 71 implementation in hindering procyclical and credit crunch mitigation. The study’s population is the banking industry listed on the Indonesian Stock Exchange from 2008 to 2020. The data are then descriptively analyzed using descriptive analysis and the Wilcoxon Rank Test. The findings show that: 1) there is a significant difference in CKPN between PSAK 55 and PSAK 71 implementations, with no significant difference in the CAR and profit values, 2) there is no significant difference in the CKPN value applied based on PSAK 71 before and after entering the COVID-19 pandemic, and 3) there are significant differences in credit disbursement during the 2008 crisis and the 2020 crisis due to the COVID-19 pandemic.

"Replika Endemi" Resistensi PSAK 71 Sebagai Countercylical Terhadap Sustainability Perbankan Ditengah Pandemi

Financial reports are important because they are useful for providing an overview for stakeholders in their decision making. Where in the preparation of financial statements the main regulation used is the Statement of Financial Accounting Standards (PSAK) established by the Indonesian Institute of Accountants (IAI) through the Financial Accounting Standards Board (DSAK). In the current status quo of Indonesia in facing the Covid-19 pandemic, the existence of PSAK has begun to be tested, adjustments must be made to financial accounting standards which are useful to strengthen the lines of corporate accountability in Indonesia and are able to answer the main urgency of Indonesia today, namely the weakening of the country's economy. The purpose of this paper is to produce a framework that can later become an alternative for banks in making decisions for implementing the PSAK 71 post model. The approach used in this paper is a qualitative approach by providing arguments and solutions for Indonesia's current economic conditions through the resulting framework design. After considering the aspects that affect the risk of bad credit, the conclusion is that PSAK 71 is able to trigger an economic upturn in Indonesia, because in its implementation it does not necessarily look at one aspect only but considers other aspects in responding to issues related to bad credit.
 Keywords: PSAK 71, Post Model Framework, Bad Credit, Indonesian Economy

ANALISIS KESESUAIAN PENERAPAN STANDAR AKUNTANSI KEUANGAN SYARIAH UNTUK PEMBIAYAAN MURABAHAH DENGAN PSAK NOMOR 102 PADA LEMBAGA KEUANGAN MIKRO SYARIAH DI ACEH BESAR

This study aims to examine the implementation of Statement of Financial Accounting Standards (PSAK) Number 102 concerning murabahah financing in Sharia Cooperatives in Aceh Besar and determine the suitability of the application of PSAK 102 on murabahah financing in Sharia Cooperatives in Aceh Besar. The population of this research is 6 Sharia Cooperatives in Aceh Besar which are registered at the Office of Cooperatives and Small and Medium Micro Businesses in Aceh Besar District which are still active until now and which apply murabahah financing. The analysis was conducted by comparing the implementation of accounting treatment on murabahah financing transactions with PSAK 102. The results showed that the accounting treatment of sharia cooperatives in Aceh Besar in terms of recognition and measurement was not fully following PSAK 102, while the accounting treatment on the presentation and disclosure side was following PSAK 102.

Does Consolidation of Variable Interest Entities Improve the Pricing of Financial Reporting in Bank Holding Companies? Evidence From FAS 166/167

The study examines whether consolidating qualified special-purpose entities (QSPEs) under Statement of Financial Accounting Standards Nos. 166 and 167 (FAS 166/167) improves the market reaction to earnings disclosures. We use a difference-in-difference design to compare the change sample, which is defined as banks that consolidate QSPEs after FAS 166/167, with the no-effect sample, which is defined as financial institutions with no QSPEs or banks that do not consolidate QSPEs after FAS 166/167. The results show that, during a short window around earnings announcements, the change sample experiences higher market reaction to earnings surprises than the no-effect sample after the implementation of FAS 166/167. We also find that the effect is more pronounced in banks that engage in securitization and in financial institutions whose securitized loans originate primarily from consumer loans rather than mortgages. Additional analysis also finds that adopting FAS 166/167 enhances the ability of earnings to predict future earnings and future cash flows in banks. The important implication of the study for regulators is that FAS 166/167 improves bank transparency.

Evaluasi Penyajian dan Pengungkapan Piutang Pihak Berelasi Berdasarkan PSAK 7 antara PT IM dengan PT KA

PT IM is a subsidiary of PT KA engaged in Kwh Meter industry. PT KA purchases inventory of trade goods to PT IM which is used to meet the needs of the company's operational activities. The recording carried out by PT IM regarding the sale to the parties in this case is that PT KA must pay attention to the provisions stipulated in the Statement of Financial Accounting Standards (PSAK) No.7 regarding the parties concerned. The purpose of this writing is to evaluate whether the presentation and disclosure of receivables of parties related to PT IM has been in accordance with PSAK No.7. The data analysis method used is a qualitative analysis method. Based on the results and discussions, the author concluded that PT IM has not fully implemented the ministry stipulated in PSAK No.7 in terms of presentation and disclosure of receivable parties.

Adaptasi Laporan Keuangan Pada Entitas Nonlaba Berdasarkan Isak 35 (Studi Kasus pada Universitas Ibrahimy Sukorejo Situbondo)

This research aims to analyze and adapt the financial reporting of non-profit entities based on Interpretation of Financial Accounting Standards 35 (ISAK 35): concerning the Presentation of Financial Statements for Non-Profit Oriented Entities. Namely the interpretation of the Statement of Financial Accounting Standards 1 (PSAK 1): concerning the Presentation of Financial Statements. For other accounting provisions for non-profit entities, it refers to the Financial Accounting Standards for Entities without Public Accountability (SAK ETAP) and Sharia Accounting Standards (SAS). Qualitative research was conducted with a case study at the University of Ibrahimy Sukorejo Situbondo. The results of this study, it is necessary to change the accrual basis recording method with the double entry system, preparation of adjusting journals to then compilation of financial position reports, comprehensive income reports, changes in net assets reports, cash flow reports and notes on financial reports based on ISAK 35. Adaptation of university financial reports Ibrahimy based on ISAK 35 is carried out by adjusting the required account posts by Ibrahimy University with the accounts stated in the Interpretation of Financial Accounting Standards 35 (ISAK 35)

Factors Influencing the Implementation of Non-profit Organization Financial Statements of Political Parties: Evidence from Indonesia

This study aims to find out whether political parties apply financial reports under PSAK (Statement of Financial Accounting Standards) No. 45. The Stewardship Theory provides the analytical framework. The objects in this study were 16 Yogyakarta City Political Parties in the Special Region of Yogyakarta, with the total number of 64 respondents. The application for processing data in this study used SPSS 22 version. Based on the results of analyzing data, H1, which had a sig (2-tailed) value of 0.026 0.05, so that H0, stating that there was no significant effect of the activity report on the implementation of PSAK, was accepted. H3 had a sig (2-tailed) value of 0.027 0.05, indicating that H0 was accepted, stating that there was a significant effect of notes to the financial statements on the implementation of PSAK.

Firm characteristics and Biological Asset Disclosure on Agricultural Firms

Agriculture firms are facing challenges on applying the Statement of Financial Accounting Standards (PSAK) 69 which regulates the recognition, measurement, disclosure, presentation and reporting biological assets because of the unique trait of biological assets. This research aims to decide the factors that influence the biological asset disclosure by testing the effect of leverage, profitability, liquidity, firm’s growth, biological assets’ intensity, firm size, type of auditor, and listing status. The samples used in this research are the agriculture firms listed on the Indonesia Stock Exchange (IDX) between 2016 and 2018. The data are collected from the auditor financial statement. This research uses a quantitative method with multiple linear regression analysis. The conclusion is that the intensity of biological asset influences the biological asset disclosure, while leverage, profitability, liquidity, firm’s growth, firm size, type of auditor, and listing status do not influence the biological asset disclosure. This research contributes as literature for academics, gives knowledge about agriculture firm’s problems for the standard compiler, and improving the agriculture firms’ obediency in disclosing their biological asset following the PSAK 69

Financial performance following discontinued operations

Purpose Prior literature provides empirical evidence that financial performance improves for core remaining operations after a firm discontinues some of their operations. This study aims to examine whether the association between discontinued operations and future financial performance improvement is affected by a regulatory rule (i.e. Statement of Financial Accounting Standards 144 [SFAS 144]) that significantly altered the reporting requirements of discontinued operations. This study also examines whether the association is dependent on the profitability of the operations discontinued. Design/methodology/approach Ordinary least square regressions are used to test the association between discontinued operations and financial performance improvement, conditional on the profitability of operations discontinued in the pre-SFAS 144 and SFAS 144 regulatory regimes. Data on profitability of operations discontinued is hand-collected. Findings Results suggest that firms experience improvement in financial performance following the reporting of discontinued operations in the pre-SFAS 144 era. Using hand-collected data on the profitability of operations discontinued, this research study also shows that improvement in performance is stronger for firms that discontinue loss operations compared to those that discontinue profitable operations. Originality/value This study explores the impact of regulatory change on the association between discontinued operations and future performance. Furthermore, unique hand-collected data is used to understand whether financial performance improvement is conditional on the profitability of the operations discontinued. Results documented in this paper should be of interest to investors, regulators and analysts in understanding the long-term strategic implications of discontinued operations.

The cost-of-equity implications of off-balance sheet pension liabilities

We use ex ante measures of cost of equity to examine: 1) whether the market assimilates off-balance sheet pension liabilities in assessing cost of equity, 2) whether off-balance sheet pension liabilities explain cost of equity in a similar manner as those reported on the balance sheet, and 3) the incremental explanatory power of Statement of Financial Accounting Standards (SFAS) 158 (FASB 2006) on cost of equity. We find that off-balance sheet pension liabilities are significantly positively associated with ex ante cost of equity in the pre- and post-SFAS 158 periods, suggesting that investors incorporate off-balance sheet pension liabilities in assessing cost of equity. However, recognized pension liabilities are more associated with cost of equity than off-balance sheet pension liabilities in both pre- and post-SFAS 158 periods. Furthermore, we find that the implementation of SFAS 158 significantly increases the explanatory power of previously disclosed pension liabilities (e.g., unrecognized prior service costs) on cost of equity, suggesting that SFAS 158 is effective in improving the cost-of-equity implications of pension liabilities.

Analysis of Environmental Accounting Reporting as Social Responsibility for Company Performance in Companies Listed on the Indonesia Stock Exchange

In an increasingly modern era, the industrial world continues to develop and increasingly complex. These developments have an impact on other elements around the industry, especially the environment. An increasingly advanced industry has an impact on the increasingly severe environmental damage due to waste pollution, mining, coal and others. The Indonesian Institute of Accountants has issued several SFAS related to environmental accounting. With the issuance of the PSAK the industrial world inevitably has to follow what has been regulated in the PSAK. SFAS related to environmental accounting is issued with the aim of ensuring that the company has carried out its obligations in the recovery of environmental damage caused by the company's operations.This research was conducted with the aim of ensuring that the company had followed the standards set by IAI in applying environmental accounting as one of its environmental responsibilities. This research was conducted using descriptive qualitative data. The results showed that the company in general had implemented PSAK especially number 57 related to the provision arising from company operations, the amount of the provision depends on the size of the company. With this research it is expected to be an alternative solution to the problem of environmental responsibility in order to add value to the company.Keywords: Environmental Accounting, Company Value, Statement of Financial Accounting Standards, Environmental Responsibility.

Analisis Perlakuan Akuntansi Pembiayaan Qordhul Hasan Berdasarkan PSAK No. 59 dan PSAK No. 101

The accounting treatment of Qardhul Hasan financing has been regulated in PSAK No. 59 and PSAK No. 101, but there are still many sharia entities especially in Baitul Maal wa Ta'lim who have not followed the Statement of Financial Accounting Standards (PSAK) rules. As well as the implementation of Qardhul Hasan financing at BMT XX which having some problems that the rate of return and funds managed are not presented in detail. Therefore, the accounting treatment of Qardhul Hasan financing at BMT XX needs to be considered. The aims of this study are to describe and adjust the accounting treatment of Qardhul Hasan financing at BMT XX with PSAK No. 59 and PSAK No. 101.
 This study uses a qualitative method with a descriptive approach by describing the implementation of Qardhul Hasan financing at BMT Maslahah Capem Pakisaji, then analyzing the suitability of accounting treatment in the form of recognition, measurement, presentation and disclosure of Qardhul Hasan financing at BMT XX through interviews, observation and documentation with PSAK No. 59 and PSAK No. 101.
 The result of this study indicates that the accounting treatment of Qardhul Hasan financing at BMT XX is not fully in accordance with PSAK No. 59 and PSAK No. 101, in terms of recognition, measurement, presentation, and disclosure of financial statements.
 Keywords: Accounting Treatment, Qardhul Hasan Financing, BMT, PSAK No. 59, PSAK No. 101.

Determinants of the Level of Islamic Bank Compliance with Mudharabah Principles: Evidence from Indonesia

This study aims to examine the determinants of Islamic banks’ compliance with the Statement of Financial Accounting Standards (SFAS) No.105 on Mudharabah principles . The sample, selected using purposive sampling, was 96 observed data of Islamic Banks (IBs) in Indonesia between 2009 and 2017. The data were analyzed using panel data regression . Using the multiple regression analysis techniques, this study demonstrated a significant positive influence of the effectiveness of the Shariah Supervisory Board (SSB), the effectiveness of audit committees, tenure of CFO, and third party funds from the Mudharabah contract for the compliance level of the IBs financial reports with SFAS No.105. Meanwhile, the CFO educational background had a significant negative effect and institutional ownership did not have any significant effect on the compliance level. Thus, to attain a higher level of compliance with SFAS 105, the Indonesian IBs must improve the quality of the reporting system monitor through the effectiveness of SSB and the audit committees

Tax and Accounting Treatment on the Revaluation of Fixed Assets (Land) in Indonesia

<p>Revaluation of assets Property, Plant and Eguipment (PPE) is carried out by a company with the aimed to provide financial statements which are more fair and reasonable. However, the question arise about how is the tax treatment for this asset assessment. The lack of regulations that regulate it makes the author to be motivated to research and hopefully can provide information to taxpayers and give suggestions to the tax authorities regarding how the tax treatment for this asset assessment. This research is using a qualitative approach with data collection through in-depth interview and literature study. The research conclude to eliminate all of the perception regarding the actual tax treatment, the tax regulator must always update or revise the tax regulations with changes or revisions made by the Financial Accounting Standards (SAK). This research is limited only on the discussion of the tax treatment towards revaluation based on the Statement of Financial Accounting Standards (PSAK) 16.</p>

Analisi Penyajian Laporan Keuangan di Perusahaan Food and Beverage yang Terdaftar di Bursa Efek Indonesia (BEI) Berdasarkan PSAK No.1

This study aims to analyze how obedient and according to the presentation of financial statements of food and beverage companies listed on the Indonesia Stock Exchange in applying accounting standards namely PSAK NO.1 by using qualitative data analysis research techniques and obtaining data by documentation. Retrieval of the required data is obtained from the IDX website namely www.idx.co.id and there are 16 food and beverage subsector companies, data taken is the annual financial statements for the two periods that have been audited. the method of analysis of this study uses a method of comparing the company's financial statements with PSAK NO.1 format The results of this study are that 16 food and beverage companies listed on the Indonesia Stock Exchange have not fully complied with the Statement of Financial Accounting Standards, there are several components that are indeed not in accordance with the Statement of Financial Accounting Standards (PSAK).

PENERAPAN PERNYATAAN STANDAR AKUNTANSI KEUANGAN (PSAK) NOMOR 105 TENTANG PEMBIAYAAN MUDHARABAH PADA BAITUL MAAL WAT TAMWIL (STUDI EMPIRIS PADA KOPERASI SYARIAH DI ACEH BESAR)

This study is a descriptive study about the implementation of the Statement of Financial Accounting Standard (SFAS) 105 mudharabah financing at Sharia Cooperatives in Aceh Besar. The aim of this study was to find out how the implementation of SFAS 105 in term of recognition, measurement, presentation, and disclosure in mudharabah financing transactions at Sharia Cooveratives in Aceh Besar. The population of this study is Sharia Cooperative in Aceh Besar. Samples taken were 5 of 21 Sharia Cooperatives, which were taken using purposive sampling method. The analisys is done by comparing the implementation of accounting treatment in mudharabah financing transactions with SFAS 105. The results showed that the accounting treatment of Sharia Cooperatives in Aceh Besar in term of recognition, measurement, and disclosure was non fully in accordance with SFAS 105, while the accounting treatment on the presentation side was in accordance with SFAS 105.

PENYUSUNAN LAPORAN KEUANGAN ORGANISASI NIRLABA BERDASARKAN PERNYATAAN STANDAR AKUNTANSI KEUANGAN (PSAK) NOMOR 45 (Studi Pada Masjid Al-Iman Bukit Tinggi)

This study aims to compile the financial statements of the Samsul Hidayah Mosque Moyo Village in accordance with the standards made by the Indonesian Accountants Association (IAI) namely Statement of Financial Accounting Standards (PSAK) No. 45. In this study, the authors analyzed the financial statements of the Samsul Hidayah Mosque with how to collect data, present data, analyze data, so as to produce conclusions about the actual picture, then compare with Statement of Financial Accounting Standards (PSAK) No.45. this type of research is qualitative with interpretive approach. The author uses data collection techniques through observation, interviews, and documentation to obtain relevant data. The results of this study indicate that the financial report of Al-Iman Bukit Tinggi Mosque is only a simple record of cash receipts and cash disbursements and the final balance of the mosque. However, the mosque management did not make an inventory of the assets owned by the mosque. The financial statements of Al-Iman Bukit Tinggi Mosque are not in accordance with the Statement of Financial Accounting Standards (PSAK) No.45 which consists of Financial Position Reports, Activity Reports, Cash Flow Statements, and Notes to Financial Statements

ANALISIS KINERJA KEUANGAN GBI BETHANY DEPOK SEBELUM DAN SESUDAH PENERAPAN PSAK NO.45

In this study the object of a non-profit organization focuses on Depok Bethany Church, located on Jalan Mawar 8 B Depok, Pancoranmas, Depok, West Java. In research conducted at this church uses descriptive qualitative data analysis techniques. The results of the study found that the GBI Bethany Depok financial statements in the form of simple recording in cash diaries, which are then transferred to monthly reports in the form of receipts and expenses recorded when the transaction occurred. GBI Bethany Depok financial performance is not in accordance with Statement of Financial Accounting Standards (PSAK) No.45