THE CONSERVATIVE ACCOUNTING MEASUREMENTS FROM THE PERSPECTIVE OF ACCOUNT IN FINANCIAL STATEMENT
Study on Manufacturing Sector In Indonesia
Abstract
The purpose of this paper is to determine the implementation of conservative accounting from the perspective of financial statements which include tax incentives, debt contracts, and political costs as research variables in manufacturing companies. The research population is the manufacturing sector listed on the Indonesia Stock Exchange with a total of 178 companies and a purposive sample obtained by 78 companies with data collection techniques using documentation. Mulvariate regression techniques is the analytical tool used, and the results obtained indicate that tax incentives have a significant positive effect on conservative accounting. By contrast, debt contracts and political costs have no significant effect on conservative accounting. This paper provides encouragement to investors when evaluating financial statement changes related to conservatism, especially those relating to tax incentive accounts, debt convenant, and political costs.
References
Reference
Ahmed, A. H., & Hussainey, K. (2017). Is Egyptian corporate financial reporting becoming more conservative? Journal of Financial Reporting and Accounting, 15(3), 333–346. https://doi.org/10.1108/jfra-06-2016-0049
Anantavrasilp, S., Huijgen, C., & Lubberink, M. (2021). Do firms anticipate security issues by conservative reporting? Journal of Contemporary Accounting and Economics, 17(2), 100260. https://doi.org/10.1016/j.jcae.2021.100260
Fadhillah, D. D. A. R. (2022). Analisis Faktor-Faktor Yang Memengaruhi Penerapan Konservatisme Akuntansi. Jurnal Studi Akuntansi Dan Keunagan, 5(1), 87–102. https://doi.org/10.33061/jeku.v21i3.6902
Handojo, I. (2012). Sekelumit Konservatisme Akuntansi. Jakarta:STIE Trisakti. Jurnal Media Bisnis, 12.
Jiménez-Angueira, C. E., Nwaeze, E., & Park, S. J. (2021). The effect of conservative financial reporting and tax aggressiveness on the market valuation of unrecognized tax benefits. Asian Review of Accounting, 29(2), 150–172. https://doi.org/10.1108/ARA-07-2020-0111
Kimouche, B. (2021). Measuring Accounting Conservatism in Financial Reports: A Comparison Between France and the United Kingdom. Journal of Social and Economic Statistics, 10(1–2), 56–75. https://doi.org/10.2478/jses-2021-0005
Makni Fourati, Y., Chakroun Ghorbel, R., & Jarboui, A. (2020). Sticky cost behavior and its implication on accounting conservatism: a cross-country study. Journal of Financial Reporting and Accounting, 18(1), 169–197. https://doi.org/10.1108/JFRA-08-2018-0071
Manganaris, P., Spathis, C., & Dasilas, A. (2016). How institutional factors and IFRS affect the value relevance of conservative and non-conservative banks. Journal of Applied Accounting Research, 17(2), 211–236. https://doi.org/10.1108/JAAR-09-2014-0094
Millah, Z., Luhgiatno, L., & Wahyuningsih, P. (2020). Analisis Pengaruh Konservatisme Akuntansi Dan Struktur Modal Terhadap Kinerja Keuangan Perusahaan. JABI (Jurnal Akuntansi Berkelanjutan Indonesia), 3(1), 72. https://doi.org/10.32493/jabi.v3i1.y2020.p72-86
Mohammed, N. F., Ahmed, K., & Ji, X. D. (2017). Accounting conservatism, corporate governance and political connections. Asian Review of Accounting, 25(2), 288–318. https://doi.org/10.1108/ARA-04-2016-0041
Salehi, M., & Sehat, M. (2019). Debt maturity structure, institutional ownership and accounting conservatism: Evidence from Iranian listed companies. Asian Journal of Accounting Research, 4(1), 35–51. https://doi.org/10.1108/AJAR-05-2018-0001
Sebrina, N., & Taqwa, S. (2019). Analysis of Accounting Conservatism on Accounting Policy Post-Implementation of International Financial Reporting Standard. 97(Piceeba), 16–28. https://doi.org/10.2991/piceeba-19.2019.3
Zhang, X., Gao, S., & Zeng, Y. (2019). An empirical study of the relationship between accounting conservatism and executive compensation-performance sensitivity. International Journal of Accounting and Information Management, 27(1), 130–150. https://doi.org/10.1108/IJAIM-01-2018-0002
Copyright (c) 2023 Murtianingsih Murtianingsih, Sherly Oktavia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Jurnal Ilmiah Bisnis dan Ekonomi Asia is Open Access which means makes all of the content of the article in this journal available for free to the public. Any part of the manuscripts in this journal can be downloaded, shared, mixed, reused, and processed by the public. However, they should acknowledge the author and share with the same license selected by the journal manager.
