scholarly journals ACCOUNTING STANDARDS FOR FIXED ASSETS OF U.S. GAAP AND IFRS: COVID-19 PANDEMIC AND EARNINGS MANAGEMENT PERSPECTIVES

2021 ◽  
Vol 6 (1SP) ◽  
pp. 122
Author(s):  
Andreas Vernando
Keyword(s):  
Earnings Management ◽  
Accounting Standards ◽  
Fair Value ◽  
Faithful Representation ◽  
Fixed Asset ◽  
Accounting Standard ◽  
Asset Value ◽  
Fixed Assets ◽  
Value Measurement

FASB and IASB have differences in setting the accounting standard for fixed asset. The FASB does not allow firms to restore the asset value that has been written down, while the IASB allow companies to recover the asset values that has been written down. These differences have distinct implication to depict the COVID-19 pandemic phenomenon and prevent earnings management that will affect the qualitative characteristics of the faithful representation. Therefore, this study aims to analyze the fixed asset accounting standards of U.S. GAAP or IFRS which is more optimal to improve the faithful representation in the case of the COVID-19 pandemic and earnings management. Based on an analysis of the theory and literature review, this study conclude that the fixed assets accounting standard of IFRS is more optimal to represent the COVID-19 pandemic faithfully than that of U.S. GAAP. This is because IFRS allows for recovery of impairment losses. In addition, the fixed asset accounting standard of U.S. GAAP is more optimal than that of IFRS for preventing earnings management so as to improve the quality of faithful representation of the fixed asset value. This is because the fair value measurement for fixed assets involves estimation and subjectivity of the asset appraiser enhancing the possibility of earnings management.

scholarly journals THE APPLICATION OF FAIR VALUE ACCOUNTING IN BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 17 (31) ◽  
Author(s):  
Amira Pobrić
Keyword(s):  
Earnings Management ◽  
Bosnia And Herzegovina ◽  
Fair Value ◽  
Financial Statement ◽  
Fair Value Accounting ◽  
Fair Value Measurement ◽  
Value Measurement ◽  
Level 2 ◽  
Infor Mation

This study investigates the application of fair value ac- counting in companies in Bosnia and Herzegovina. The study was conducted on a sample of 190 companies. The application of fair value accounting causes a lot of controversy related to the relevance and reliability of fair value information. It is believed that the extent to which fair value measurement is used reflects attitudes of financial statement preparers about the usefulness of this model at its best. The findings of this study sug- gest that most companies in Bosnia and Herzegovina do not have tendency to apply fair value accounting. It is found that half of the companies in the sample do not use fair value accounting at all. Almost half of the com- panies that use fair value accounting use it just because they own assets that require fair value measurement. Fair value accounting is much more used in financial and larger companies than in non-financial and smaller companies. Companies mostly use fair value accounting for the measurement of investment property. However, they use it for the measurement of intangible assets at a minimum. The findings also suggest that the application of fair value accounting increases the uncertainty in fi- nancial statements. The quality of fair value disclosures is very low. Numerous companies do not disclose infor- mation on fair value hierarchy and valuation techniques that were used for fair value measurement. Companies that disclose this information mostly use indirectly ob- servable inputs (Level 2) for fair value measurement and these create a lot of room for earnings management.

scholarly journals ANALISIS PENGAKUAN ASET TETAP BERDASARKAN PSAK DI CV GERONIMO AIRMADIDI

2021 ◽  
pp. 45-55
Author(s):  
Yudi Lamandoke ◽  
Tinneke E.M. Sumual ◽  
Frida M Sumual
Keyword(s):  
Data Analysis ◽  
Accounting Standards ◽  
The State ◽  
Financial Accounting ◽  
Fixed Asset ◽  
Accounting Standard ◽  
North Sulawesi ◽  
Fixed Assets ◽  
Qualitative Technique ◽  
A Company

Abstrak CV Geronimo perusahaan perseroan komoditer yang bergerak dibidang jasa di Kelurahan Sarongsong 1, Kecamatan Airmadidi, Kabupaten Minahasa Utara, Sulawesi Utara. Penelitian ini bertujuan untuk mengetahui apakah pengakuan aset tetap di CV Geronimo sudah sesuai dengan pernyataan standar akuntansi keuangan  no.16 tentang aset tetap. Teknik analisis data yang digunakan adalah analisis deskritif kualitatif, yaitu metode yang bertujuan untuk menggambarkan keadaan perusahaan berdasarkan kenyataan yang sesungguhnya terjadi disuatu perusahaan. Hasil penelitian menunjukkan bahwa pengakuan aset tetap di kantor CV Geronimo  sesuai dengan pernyataan standar akuntansi keuangan no 16.   Kata kunci: pengakuan, akuntansi aset tetap, pernyataan standar akuntansi keuangan no. 16   Abstract CV Geronimo is a commodity company engaged services at Sarongsong 1 Village, Airmadidi District, North Minahasa Regency, North Sulawesi. This study aims to determine whether the recognition of fixed assets at CV Geronimo by following the statement of financial accounting standards No.16 regarding fixed assets. The data analysis is using descriptive qualitative technique analysis, which is a method that aims to describe the state of the company based on the fact that occur in a company. The results showed that the recognition of fixed assets in the Cv Geronimo office was by following  the statement of financial accounting standards No. 16. Keywords: recognition, fixed asset accounting, financial accounting standard statement no. 16  

scholarly journals ANALISIS PENERAPAN PSAK NO. 16 TENTANG ASET TETAP PADA PT. BANK SULUTGO

2018 ◽  
Vol 14 (1) ◽  
Author(s):  
Natalia Punusingon ◽  
Harijanto Sabijono ◽  
Sintje Rondonuwu
Keyword(s):  
Descriptive Analysis ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Fixed Asset ◽  
Accounting Standard ◽  
Production Factors ◽  
Straight Line ◽  
Fixed Assets ◽  
Straight Line Method

In an operational company requires production factors to support the company in achieving its objectives. Of the several types of assets, there is one of the most important assets in supporting the company's operations, namely fixed assets. This study aims to find out that the company has implemented a fixed asset accounting policy that is appropriate and based on the Statement of Financial Accounting Standards (PSAK) no.16 in company activities. The method in this study is descriptive analysis method. In carrying out its accounting activities, PT. SulutGo Bank has referred to PSAK No. 16. In practice, companies distinguish types and ways of obtaining fixed assets with cash purchases or by establishing themselves, in depreciating fixed asset companies using the straight-line method and the declining balance method in accordance with applicable Accounting Standards, in terminating fixed assets whose useful lives has expired or is no longer used by removing assets from the register of ownership and releasing them through sales through auction. presentation and disclosure of assets in accordance with the pattern of financial standards and some information disclosed in financial statements. Keywords: fixed assets, SFAS no.16, financial statements, depreciating, financial accounting standard

scholarly journals Effect of Fair Value Measurement on Earnings Management of Chinese Real Estate Listed Companies

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Keyu Guo ◽  
Airu Zhang
Keyword(s):  
Real Estate ◽  
Earnings Management ◽  
Accounting Standards ◽  
Fair Value ◽  
Chinese Enterprises ◽  
New Guidelines ◽  
Value Measurement ◽  
The Impact ◽  
New Criteria ◽  
Very High

Since the fair value has been used, it has always been paid more attention to, after the financial crisis, it has caused widespread denunciation of the academic session. In the new accounting standards issued in 2014, the attention of fair value has always been very high, which can reflect the influence of enterprises on earnings management through the measurement of fair value. By describing the application of fair value under the new criteria to pave the way for the following description. The back illustrates the impact of fair value on earnings management under the new guidelines. At the end of the paper, some policies and constructive suggestions are put forward to improve earnings management in Chinese enterprises.

scholarly journals ANALISIS KEBIJAKAN PERUSAHAAN MELAKUKAN REVALUASI ASET TETAP

2021 ◽  
Vol 8 (2) ◽  
pp. 47-65
Author(s):  
Achmad Tjahjono
Keyword(s):  
Cash Flow ◽  
Fair Value ◽  
Company Size ◽  
Fixed Asset ◽  
Financial Reports ◽  
True Value ◽  
Asset Value ◽  
Fixed Assets ◽  
Operating Cash Flow ◽  
Company Growth

Fixed asset recognition is one of the main problems in fixed asset accounting. The use of cost does not reflect the true value of the asset so that the asset value is irrelevant. The IFRS convergence PSAK allows the use of the fair value (revaluation method) of fixed assets to reflect the current price so that the asset value becomes higher. Thus financial reports will provide more relevant information to users of financial statements to be used as a basis for decision making. This study aims to determine the effect of leverage, liquidity, company size, decrease in operating cash flow, fixed asset intensity, company growth on company policies to revaluate fixed assets in banking companies listed on the Indonesia Stock Exchange in 2015-2019. The populations of this study was taken using purposive sampling method with a total of 42 companies. The data used are secondary data in the form of annual financial reports and analyzed using logistic regression analysis techniques with a significance level of 5%. The results of this study are leverage, liquidity, and a partial decrease in operating cash flow have a positive and insignificant effect on fixed asset revaluation. Company size, fixed asset intensity, and company growth partially have a positive and significant effect on fixed asset revaluation. Taken together, the variables have a significant effect and are able to explain the variability to the dependent variable by 33,4%.

scholarly journals PENERAPAN FAIR VALUE ASET TETAP OLEH KANTOR PELAYANAN KEKAYAAN NEGARA DAN LELANG SORONG (STUDI KASUS PADA PENGADILAN AGAMA MANOKWARI)

2020 ◽  
Vol 1 (2) ◽  
pp. 97-104
Author(s):  
Amrie Firmansyah ◽  
Fadhil Maris Alamsyah ◽  
Eko Agus Purwanto
Keyword(s):  
Accounting Standards ◽  
Fair Value ◽  
District Court ◽  
Government Agencies ◽  
Positive Contribution ◽  
Structured Interviews ◽  
Government Sector ◽  
Fixed Assets ◽  
Asset Data ◽  
Value Concept

This study aims to analyze the implementation of the fair value concept of fixed assets to government agencies. The method in this study uses a qualitative approach with structured interviews. The informants in this study are three employees of the Services Office of State Wealth and Auction Sorong, who already have appraisal certificates. The object of this study uses the asset data of the manokwari district court in the form of land, buildings, and buildings, and water buildings during 2018. This study concludes that the implementation of the fair value concept in fixed assets by the Services Office of State Assets and Auction Sorong in broad outline is in accordance with applicable regulations or accounting standards, especially accounting standards related to fixed assets and fair value. Based on the results of this study are expected to encourage improvements in the process of inventory of fixed assets in the scope of government agencies and may make a positive contribution to the development of the implementation of fair value accounting in government sector. Penelitian ini bertujuan untuk menganalisis penerapan konsep nilai wajar aset tetap pada instansi pemerintahan. Metode dalam penelitian ini menggunakan pendekatan kualitatif dengan wawancara terstruktur. Informan dalam penelitian ini adalah tiga pegawai Kantor Pelayanan Kekayaan Negara Dan Lelang Sorong yang telah memiliki sertifikat penilai. Objek penelitian ini menggunakan data aset pengadilan negeri manokwari berupa tanah, gedung dan bangunan, dan bangunan air selama tahun 2018.Penelitian ini menyimpulkan bahwa penerapan konsep nilai wajar pada aset tetap oleh Kantor Pelayanan Kekayaan Negara Dan Lelang Sorong secara garis besar sudah sesuai dengan peraturan atau standar akuntansi terkait yang berlaku, terutama standar akuntansi terkait aset tetap dan nilai wajar. Berdasarkan hasil penelitian ini diharapkan dapat mendorong perbaikan proses inventarisasi aset tetap di lingkup instansi pemerintahan dan dapat memberikan kontribusi yang positif bagi perkembangan atas penerapan akuntansi nilai wajar dalam sektor pemerintahan.

scholarly journals MENGUPAS PERSOALAN STANDAR AKUNTANSI KEUANGAN - GOODWIL DI BERBAGAI NEGARA : SUATU PENDEKATAN STUDI LITERATUR

2017 ◽  
Vol 2 (2) ◽  
Author(s):  
Deddy Kurniawansyah
Keyword(s):  
Research Method ◽  
Intangible Assets ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Fair Value Accounting ◽  
Literature Study ◽  
Accounting Standard

This literature study explains and describe the development of the concept of goodwill from the perspective of accounting by observing and describing until the development at this time, discusses differences in accounting standards of goodwill applicable in some countries, and explains the things that contradict the goodwill. This research method used qualitative with literature study. The results of this study are in some countries, the concepts and rules on goodwill accounting have undergone various changes, including international accounting standards issued by the IASC. Initially goodwill is capitalized and amortized over no more than 20 years. But, along with the increasing use of fair value accounting in accounting standards, thetreatment for goodwill also experienced a shift that is eliminated by the amortization method is replaced by doing impairment test to goodwill. The results of this study contribute as add to the treasury of financial accounting literature, especially accounting treatment of goodwill as intangible assets in the financial statements of various countries such as Indonesia, America and the England.Keyword :Goodwiil, Impairment, Financial Accounting Standard

Impairment reversals: unbiased reporting or earnings management

2018 ◽  
Vol 26 (2) ◽  
pp. 245-271 ◽  
Author(s):  
Tongyu Cao ◽  
Hasnah Shaari ◽  
Ray Donnelly
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Reporting Standard ◽  
Accounting Standard ◽  
Content Type ◽  
Study Support ◽  
A Company

Purpose This paper aims to provide evidence that will inform the convergence debate regarding accounting standards. The authors assess the ability of impairment reversals allowed under International Accounting Standard 36 but disallowed by the Financial Accounting Standards Board to provide useful information about a company. Design/methodology/approach The authors use a sample of 182 Malaysian firms that reversed impairment charges and a matched sample of firms which chose not to reverse their impairments. Further analysis examines if reversing an impairment charge is associated with motivations for and evidence of earnings management. Findings The authors find no evidence that the reversal of an impairment charge marks a company out as managing contemporaneous earnings. However, they document evidence that firms with high levels of abnormal accruals and weak corporate governance avoid earnings decline by reversing previously recognized impairments. In addition, companies that have engaged in big baths as evidenced by high accumulated impairment balances and prior changes in top management, use impairment reversals to avoid earnings declines. Research limitations/implications The results of this study support both the informative and opportunistic hypotheses of impairment reversal reporting using Financial Reporting Standard 136. Practical implications The results also demonstrate how companies that use impairment reversals opportunistically can be identified. Originality/value The results support IASB’s approach to the reversal of impairments. They also provide novel evidence as to how companies exploit a cookie-jar reserve created by a prior big bath opportunistically.

The impact of the global economic crisis of 2008 on earnings quality in Mexico

2019 ◽  
Vol 9 (3) ◽  
pp. 407-421
Author(s):  
Jose Miranda-Lopez ◽  
Ivan Valdovinos-Hernandez
Keyword(s):  
Earnings Management ◽  
Economic Crisis ◽  
Earnings Quality ◽  
Accounting Standards ◽  
Previous Literature ◽  
Income Smoothing ◽  
Accounting Quality ◽  
Content Type ◽  
Global Economic Crisis

Purpose The purpose of this paper is to examine the earnings quality of companies listed on Mexico’s primary stock market, the Bolsa Mexicana de Valores (Bolsa) before and during the global economic crisis of 2008. Previous research has shown that these economic events can have potentially conflicting effects on the quality of earnings of listed companies in capital markets around the world. Design/methodology/approach This paper operationalizes earnings quality based on earnings management. Therefore, four constructs to proxy for earnings quality are developed from previous literature, and multiple regression analysis along with tests of differences across two time periods, 2005–2007 and 2008–2010, are used to determine if there is a significant change in the accounting quality of companies listed on the Bolsa before and after the start of the global economic crisis. Findings Results indicate a statistically significant decrease of earnings quality on three out of the four constructs used to proxy for earnings management. There is only one construct in this category that shows a significant increase of earnings quality. Research limitations/implications There are different number of constructs and methodologies used to test for earnings quality. This study draws on four different constructs on two dimensions of earnings quality from previous literature, but other methodologies and constructs can potentially be used as well, such as discretionary accruals. Furthermore, there is a chance that there can be confounding factors affecting the results of this study besides the effects of the global economic crisis. Finally, the sample used in this study comprises non-financial public companies listed on the Bolsa, which can affect the generalization of the results to countries other than Mexico. Practical implications The results of this study can be of interest to Mexican and foreign investors, standard setters and regulators of the Bolsa, as the results show a strong incentive to manage companies’ earnings using income smoothing in an emerging economy during an economic crisis even after converging to a higher-quality set of accounting standards. Results can also be of interests to investors and regulators in other Latin-American countries with economies similar to that of Mexico. Originality/value This is the first study to test the quality of earnings of Mexican companies before and during the global economic crisis of 2008. Thus, this study contributes to the accounting quality literature by offering evidence showing a significant increase of income smoothing during the global economic crisis for companies listed in a developing economy with a relevant history of economic crises, even when these companies were using recently converged, higher-quality accounting standards.

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