Financial Accounting at Islamic Boarding Schools in Riau Province

This study aims to analyze how the application of financial accounting in Islamic boarding schools in Riau Province. The research method is descriptive qualitative that is comparing theory and practice carried out by Islamic boarding schools. Sources and research data obtained from primary and secondary data The number of informants obtained amounted to 9 boarding school administrators. The object of the research is a boarding school in the province of Riau. The result of the research is that all Islamic boarding schools in terms of their accounting application have not followed or applied the accounting standards that have been set by the Generally Accepted Accounting Principles. The accounting applied is still very simple, that is, it still uses a general cash book and there is no journalizing. The financial statements made are only limited to general financial accountability. For this reason, it is necessary to socialize Accounting Standards for Islamic Boarding Schools, because according to the management they have never received accounting training in their Islamic boarding schools.

A Meta Analysis of Materiality Studies

The Supreme Court and the Public Company Accounting Oversite Board (PCAOB) has said that an amount is material if there is a substantial likelihood it will influence a reasonable investor’s judgment. The American Institute of Certified Public Accountants (AICPA) has said that an amount is material if there is a substantial likelihood it will influence a reasonable user’s judgment. The Financial Accounting Standards Board (FASB) has refused to define materiality. The Securities and Exchange Commission (SEC) has said that qualitative factors can make even small amounts material. Reasonable implies a consensus of opinion. This article is a meta-analysis of 31,155 materiality decisions made by 335 cohorts in 48 studies with the objective of defining what is reasonable. A cohort is a group of like individuals faced with a common materiality decision. Materiality in this study is measured as a percentage of net income. The mean threshold of materiality is 7.84% and the median is 6.81%. Both thresholds are substantially higher than the often-discussed threshold of 5.0%. A quarter of the participants in these studies set the threshold of materiality at 11.90% and the threshold for a statistically significant difference from the consensus is 17.51%. Ultimately, materiality will be decided through civil and criminal litigation. Finders of fact, usually jurors, will be asked to determine what a reasonable investor would conclude. Few jurors have the training and experience of investors, so without context, they can only guess what a reasonable investor would conclude. This study provides that context.

The Crown land accounting dilemma in New South Wales local government

PurposeThe paper addresses the question of whether Crown land managed by local authorities in the New South Wales (NSW) local government system should be recognised as assets on municipal balance sheets.Design/methodology/approachThe paper provides a synoptic review of the literature on accounting for public goods assets followed by a critical analysis of the official requirements of the NSW government on the recognition of Crown land.FindingsThe NSW government holds that Crown land managed by local councils should be recognised as an asset on council books. However, following an assessment of the problem through the analytical prism of financial accounting, it is argued that councils do not possess control over Crown land and that such land should thus not be recognised by councils.Research limitations/implicationsThe paper covers the legal and accounting framework applicable to NSW local government. However, it has broader implications for other local government systems with similar institutional and legislative foundations, such as other Australian states, New Zealand and South Africa, and these implications are highlighted in the paper.Practical implicationsIt is argued that NSW government policymakers should re-consider the requirement for Crown land to be recognised on councils' books. Local authorities would then be able to save money and time on external auditing, management of land asset registers and the mandatory valuation of land.Originality/valueAlthough Crown land shares some of the characteristics of other public good assets, unique accounting challenges arise due to the existence of a market in which such land could be traded not by councils, but by its legal owner (the Crown). In financial accounting, legal ownership is not considered as the main criterion over assets. However, the authors argue that for Crown land vested with councils, it becomes a critical factor in decision making.

Factors Affecting Compliance WITH Financial Accounting Standards of Entity Without Public Accountability (SAK ETAP) In MSMEs In Bada Village

Other causes of neglect of recording/financial reports from MSMEs are the lack of understanding and expertise in recording, the education level of business managers who still have not achieved the expertise/application technology in making SAK ATAP financial report documents. This study aims to determine whether the level of education, information technology and age of business affect SAK ETAP compliance on MSMEs in Bada Village. The type of research used in this research is quantitative with a descriptive approach. The population in this study was 66 and the sample obtained was 40 MSME actors. The data collection technique used in this research is a questionnaire and analysis tool, namely multiple regression using the SPSS 21.0 application. The results showed that both simultaneously indicated that the level of information technology education and business age had a positive and significant effect on SAK ETAP compliance. Partially the level of education has a significant effect on SAK ETAP compliance where the value of sig. Partially, information technology has a significant effect on SAK ETAP compliance where the value of sig . Partially, business age has a significant effect on SAK ETAP compliance where the sig value