Analysis of Differences in Measurement of Fair Value and Historical Value of Biological Assets on Income Smoothing (Study on Agricultural Companies in Southeast Asia And Australia)

Nopfiana Lestari; Satia Nur Maharani; M Slamet Fauzan

doi:10.32535/ijafap.v3i3.955

Analysis of Differences in Measurement of Fair Value and Historical Value of Biological Assets on Income Smoothing (Study on Agricultural Companies in Southeast Asia And Australia)

Nopfiana Lestari, Satia Nur Maharani, M Slamet Fauzan

Abstract

Biological assets are assets of living things in the form of animals and plants. There have been various debates regarding the measurement of biological assets. The debate is related to the use of fair value and historical value in measuring biological assets. Historical value is considered less relevant because it does not reflect present value, while fair value is not considered as expected because it causes fluctuations in earnings and retains manipulation. This study aims to analyze the effect of fair value and historical value measurements on biological assets on income smoothing and the tendency of earnings manipulation in companies that use fair value. The results of different tests show that there is not enough evidence to state that companies that use fair value tend to have higher income smoothing than companies that use historical value. Based on the results of this study, it is suggested that investors should not only focus on company profits but also use other considerations such as future economic conditions, management performance, and government regulations.

Full Text:

PDF

References

Argiles. 2009. Fair Value Versus Historical Cost Valuation for Biological Assets: Implication for The Quality of Financial Information. VIII Jornadas De Contabilidad Financiera, (Online), (http://sciencedirect.com/science/pii), diakses 19 Januari 2015.

Arikunto, Suharsimi. 2006. Prosedur Penelitian: Suatu Pendekatan Praktek. Jakarta: Rineka Cipta.

Barlev, B & Haddad,JR 2003. Fair Value Accounting and The Management of The Firm. Critical Persective on Accounting 14:383-415. (Online), (http://www.audytax.mx/wp-content/), diakses pada 27 Februari 2016.

Beattrice, VA 2013. Fair Valur Measurement in Agriculture and The Potential to Mislead. Economy Series Issue 5, (Online), (http://www.utgjiu.ro), diakses 8 Januari 2016. Belkaoui, Ahmed Riahi. 2007. Teori Akuntansi: Edisi 5 â€“ Buku 2. Jakarta: Salemba Empat Budiasih, Igan. 2007. Faktor-Faktor yang Mempengaruhi Praktik Perataan Laba. Jurnal. Jurusan Akuntansi. (Online), (http://ssrn.com), diakses 24 Mei 2016

Danbolt, Jo dan Ress, Bill. 2007. An Experiment in Fair Value Accounting: UK Investment Vehicles. European Accounting Review, (Online), 17(2), p. 271-303 (http://papers.ssrn.com/sol3/paper.cfm), diakses 3 September 2015.

Gradiyanto, Andrean. Pengaruh Komite Audit Terhadap Praktik Manajemen Laba. SKRIPSI tidak diterbitkan. (Online), (https://eprints.undip.ac.id), diakses 1 Agustus 2016.

IASC. 2012. IAS 41: Agriculture. (Online), (http://www.ifrs.org), diakses pada 22 Desember 2015.

Kaur, J. 2013. The Fairness of the Fair Value Concept. International Journal of Business and Commerce. Vol 3, No.3:01-10,(Online), (http://www.ijbcnet.com), diakses 22 September 2015.

Kusumaningtyas, Meta. 2012. Pengaruh Independensi Komite Audit dan Kepemilikan Institusional terhadap Manajemen Laba. Prestasi J uni 2012. (Online), 9(1):41-61, (www.jurnal.stiebankbpdjateng.ac.id%2Findex.php%2Fprestasi%2Farticle%2Fvie w%2FMetta), diakses 1 Agustus 2016.

Maruli, Saur & Mita, Aria Farah. Analisis Pendekatan Nilaai Wajar dan Nilai Historis dalam Penilaian Aset Biologis pada Perusahaan Agrikultur: Tinjauan Kritis Rencana Adopsi IAS 41, Simposium Nasional Akuntnsi 13(Online), (http://pdeb.fe.ui.ac.id), diakses 19 Januari 2015.

Melurmutia. Pengaruh Komite Audit Terhadap Manajemen Laba. SKRIPSI tidak diterbitkan. (Online), (https://repository.unhas.ac.id/handle/123456789/10751), diakses 1 Agustus 2016.

Pamudji, Sugeng. 2010. Pengaruh Independensi dan Efektivitas Komite Audit Terhadap Manajemen Laba. Journal Unnes (Online) 2(1):1-18, (journal.unnes.ac.idâ€ºHomeâ€ºVol2,No1(2010) â€º Pamudji), diakses 1 Agustus 2016.

Penttinen et al. 2014. IAS Fair Value and Forest Evaluation on Farm Forestry. Proceding of the Biennial Meeting of the Scandinavian Forest Economics No. 40

Prawirosentono, Suyadi. 2002. Bahasan Komprehensif Strategi Pengambilan Keputusan Bisnis-Disertai-Analisis dan Studi Kasus. Jakarta : Bumi Aksara.

Rahmawati. 2012. Teori Akuntansi Keuangan. Yogyakarta: Graha Science. Rayman, RA 2007. Fair Value Accounting and The Present Value Fallacy: The Need for an Alternative Conceptual Framework. The British Accounting Review 39:211-225, (Online), (http://www.scienceirect.com), diakses 24 Februari 2016.

Ronen, J. 2008, To Fair Value or Not to Fair Value: A Broader Prespective. ABACUS Vol. 44 No. 2, (Online), (http://ssrn.com), diakses 24 Februari 2016.

Salusu. 2000. Pengambilan Keputusan Stratejik(Untuk Organisasi Publik dan Non-Profit). Jakarta: PT Grasindo.

Setiadi, Nugroho J. 2008. Business Economic and Manajerial Decision Making (Aplikasi Teori Ekonomi dan Pengambilan Keputusan Manajerial Dalam Dunia Bisnis). Jakarta: Kencana Prenada Media Group.

Sonbay, Yolinda Yanti. 2010. Perbandingan Biaya Historis dan Nilai Wajar. Kajian Akuntans Pebruari 2010,i (Online), 2(1):1-8, (http://unisbank.ac.id), diakses 08 November 2015.

Stolowy, H & Breton, G. 2000. A Framework for the Clasificationof Accountans Manipulation. HEC Accounting and Manajement Control Working Paper No. 708, (Online), (http://papers.ssrn.com), diakses 24 Februari 2016.

Subramanyam. 2011. Analisis Laporan Keuangan Edisi 10. Jakarta: Salemba Empat. Sudrajat, Akhmad. 2010. Konsep Dasar Pengambilan Keputusan (Decision Making). (Online), (http://repository.unej..ac.id/handle), diakses 08 November 2015.

Sukendar, Heri. 2010. Konsep Nilai Wajar (Faire Value) Dalam Standar Akuntansi Berbasis IFRS di Indonesia Apa dan Bagaimana. Binus Bussiness Review, (Online), 3(1):93- 106, (http://journal.binus.ac.id/index.php/BBR/article/download/1286/1151), 25 Juli 2016

Sutedi, Adrian. 2011. Good Corporate Governance. Jakarta:Sinar Grafika. Suwardjono. 2008.

Tudor, Alexandra. 2010. Income Smoothing and Earning Informativeness : A Matter of Institutional Characteristic of Accounting?. TESIS tidak diterbitkan. (Online), (http://repub.eur.nl), diakses 16 Januari 2016

Watts, RL 2003. Conservatism in Accounting Part I: Explanations and Implications. Financial Research and Policy Working Paper No. FR 03-16, (Online), (http://ssrn.com/abstract=414522), diakses 24 Februari 2016.

DOI: https://doi.org/10.32535/ijafap.v3i3.955