Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)

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Evaluation of Changes in Accounting Standards from SAK ETAP to SAK: Case Study of a Power-Plant Company

Authors
Aditia Hariadi Tama, Kurnia Iwansyah Rais
Corresponding Author
Aditia Hariadi Tama
Available Online October 2019.
DOI
10.2991/aprish-18.2019.22How to use a DOI?
Keywords
changes in accounting standards, retrospective application, consolidated financial statements
Abstract

This study addresses the implementation of changes in accounting standards from those without public accountability (SAK ETAP) to normal financial accounting standards (SAK). Indonesia has three pillars of accounting standards that can be voluntarily chosen. PT A, the subject of our case study, used SAK ETAP until they sought to get fresh funds through an initial public offering. Under financial services authority rules, PT A's financial statements required to go public had to be prepared using SAK. This study seeks to discover the differences and impacts arising from moving from SAK ETAP to SAK. The various hypotheses tested in the literature concerning the changes in accounting policies show that changes have been made for income smoothing. The biggest impact seems to entail the restatement of financial statements, consolidation principles, deferred taxes, post-employment benefits, financial instruments, and statements of cash flow. The figures of financial position and profit and loss are adjusted, resulting in increased profits and improved financial ratios. This is contradictory to several hypotheses tested in previous studies stating that changes in accounting policies tended to cause income smoothing.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
October 2019
ISBN
978-94-6252-802-4
ISSN
2352-5398
DOI
10.2991/aprish-18.2019.22How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Aditia Hariadi Tama
AU  - Kurnia Iwansyah Rais
PY  - 2019/10
DA  - 2019/10
TI  - Evaluation of Changes in Accounting Standards from SAK ETAP to SAK: Case Study of a Power-Plant Company
BT  - Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
PB  - Atlantis Press
SP  - 187
EP  - 190
SN  - 2352-5398
UR  - https://doi.org/10.2991/aprish-18.2019.22
DO  - 10.2991/aprish-18.2019.22
ID  - Tama2019/10
ER  -