TY - JOUR
T1 - The negligence of IFRS adoption
T2 - Accounting treatment on biological accretion of sugarcane
AU - Zenanda, Singgih Setya
AU - Suyunus, Mohamad
N1 - Publisher Copyright:
© 2020 Primrose Hall Publishing Group.
PY - 2020
Y1 - 2020
N2 - Biological assets will undergo a transformation called biological transformation. This transformation causes change both qualitatively and quantitatively. IASC has set the IAS 41 standard of biological assets on Agriculture, which is not yet available on Financial Accounting Standards of Indonesia. The biological transformation causes an accretion, which is an additional value due to physical growth or other natural processes. This research was conducted in PG Pesantren Baru PT Perkebunan Nusantara X which is engaged in the sugar industry that perform the sugarcane production. The purpose of this research is to understand and know the management of the phenomenon of sugarcane accretion, accounting policies related to sugarcane, the comparison with IAS 41, and also the fairness in presenting the sugarcane asset in financial statements. The company carries out the management of the sugarcane accretion since it is one of the indicators that bring the success of sugarcane production. The company recognizes the cost of sugarcane production as an accrued production expense and compares its cost to historical cost.
AB - Biological assets will undergo a transformation called biological transformation. This transformation causes change both qualitatively and quantitatively. IASC has set the IAS 41 standard of biological assets on Agriculture, which is not yet available on Financial Accounting Standards of Indonesia. The biological transformation causes an accretion, which is an additional value due to physical growth or other natural processes. This research was conducted in PG Pesantren Baru PT Perkebunan Nusantara X which is engaged in the sugar industry that perform the sugarcane production. The purpose of this research is to understand and know the management of the phenomenon of sugarcane accretion, accounting policies related to sugarcane, the comparison with IAS 41, and also the fairness in presenting the sugarcane asset in financial statements. The company carries out the management of the sugarcane accretion since it is one of the indicators that bring the success of sugarcane production. The company recognizes the cost of sugarcane production as an accrued production expense and compares its cost to historical cost.
KW - Accounting treatment
KW - Accretion
KW - Biological assets
KW - Fairness of presentation
KW - IAS 41
UR - http://www.scopus.com/inward/record.url?scp=85082186046&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85082186046
SN - 2201-1315
VL - 11
SP - 403
EP - 416
JO - International Journal of Innovation, Creativity and Change
JF - International Journal of Innovation, Creativity and Change
IS - 9
ER -