Improved Accounting Practices

Oct 13, 2025 by windailys.com 44 views

Analysis of the Application of PSAK 69 at PT. PP London Sumatra Indonesia, Tbk

Introduction

In the realm of financial accounting, the application of accounting standards is crucial for companies to maintain transparency and accuracy in their financial statements. One such standard is PSAK 69, which provides guidelines for the recognition and measurement of biological assets. This study aims to analyze the application of PSAK 69 at PT. PP London Sumatra Indonesia, Tbk, an agricultural company, to understand its impact on the company's financial statements.

Background

PT. PP London Sumatra Indonesia, Tbk is a leading agricultural company in Indonesia, involved in the production and trading of plantation crops such as palm oil and rubber. The company's financial statements are prepared in accordance with Indonesian Accounting Standards (PSAK), which are based on International Financial Reporting Standards (IFRS). The application of PSAK 69 is a significant development in the company's accounting practices, as it requires the recognition and measurement of biological assets, which were previously not accounted for separately.

Methodology

This study uses a comparative qualitative descriptive approach, with a case study at PT. PP London Sumatra Indonesia. The data sources used include company financial statements from 2017 and 2018, which are collected through documentation techniques. To analyze data, the data analysis model is applied from Miles and Hubberman.

Impact Analysis of PSAK Application 69

The application of PSAK 69 to PT. PP London Sumatra Indonesia, Tbk indicates developments in agricultural accounting practices. Recognition of biological assets provides a new dimension in managing the company's financial statements, which may not be taken into account in the same context. With the holding of biological assets, PT. PP London Sumatra can be more transparent in its financial statements regarding the value of plantation crops that are being planted and take into account the impact of market fluctuations.

On the other hand, although there are no significant changes, it is still important for companies to conduct periodic evaluations regarding the value of these biological assets. This process can increase the reliability of the information presented in the financial statements, which in turn have a positive impact on decision making by management and stakeholders. A better understanding of losses or profits arising from changes in the value of biological assets can provide valuable insights related to the risks and opportunities faced by the company.

Analysis of Financial Statements

The results of this study show that the application of PSAK 69 at PT. PP London Sumatra Indonesia, Tbk does not bring significant changes to the financial statements. Nevertheless, there is an additional new account, namely biological assets, which reflects the use of PSAK 69. Meanwhile, plantation plants accounts are maintained and measured based on the provisions in PSAK 16 which is an important aspect in managing company assets.

Conclusion

In conclusion, the application of PSAK 69 at PT. PP London Sumatra Indonesia, Tbk demonstrates the company's efforts to follow applicable accounting standards and increase financial transparency in the agricultural sector. This can be a valuable reference for other companies in similar industries that seek to improve accounting practices and meet established standards. Although the application of PSAK 69 does not drastically change the structure of financial statements, it provides a new dimension in managing the company's financial statements, which can increase the reliability of the information presented.

Recommendations

Based on the findings of this study, the following recommendations are made:

Periodic Evaluations: Companies should conduct periodic evaluations regarding the value of biological assets to increase the reliability of the information presented in the financial statements.
Improved Accounting Practices: Companies should improve their accounting practices to meet established standards and increase financial transparency.
Training and Development: Companies should provide training and development programs for their accounting staff to ensure that they are familiar with the application of PSAK 69 and other accounting standards.

Limitations of the Study

This study has several limitations, including:

Case Study: The study is based on a case study at PT. PP London Sumatra Indonesia, which may not be representative of other companies in the agricultural sector.
Data Collection: The data used in this study is limited to company financial statements from 2017 and 2018, which may not reflect the current situation of the company.
Methodology: The study uses a comparative qualitative descriptive approach, which may not be suitable for all types of research questions.

Future Research Directions

Future research should focus on the following areas:

Application of PSAK 69 in Other Industries: The study should be replicated in other industries to determine the applicability of PSAK 69 in different sectors.
Impact of PSAK 69 on Financial Statements: The study should investigate the impact of PSAK 69 on financial statements in terms of accuracy, reliability, and transparency.
Training and Development Programs: The study should investigate the effectiveness of training and development programs in improving accounting practices and increasing financial transparency.

Conclusion

In conclusion, the application of PSAK 69 at PT. PP London Sumatra Indonesia, Tbk demonstrates the company's efforts to follow applicable accounting standards and increase financial transparency in the agricultural sector. This can be a valuable reference for other companies in similar industries that seek to improve accounting practices and meet established standards.
Q&A: Analysis of the Application of PSAK 69 at PT. PP London Sumatra Indonesia, Tbk

Introduction

In our previous article, we analyzed the application of PSAK 69 at PT. PP London Sumatra Indonesia, Tbk, an agricultural company, to understand its impact on the company's financial statements. In this article, we will answer some of the frequently asked questions related to the application of PSAK 69 and its impact on financial statements.

Q1: What is PSAK 69 and why is it important?

A1: PSAK 69 is an Indonesian accounting standard that provides guidelines for the recognition and measurement of biological assets. It is important because it requires companies to recognize and measure biological assets separately, which can increase the accuracy and reliability of financial statements.

Q2: How does the application of PSAK 69 affect financial statements?

A2: The application of PSAK 69 does not bring significant changes to financial statements, but it requires the recognition and measurement of biological assets separately. This can increase the accuracy and reliability of financial statements, but it may also require additional disclosures.

Q3: What are biological assets and why are they important?

A3: Biological assets are living organisms or parts of living organisms that are used in the production of goods or services. They are important because they can have a significant impact on the financial performance of a company.

Q4: How does the application of PSAK 69 affect the accounting practices of companies?

A4: The application of PSAK 69 requires companies to improve their accounting practices to meet established standards and increase financial transparency. This can include training and development programs for accounting staff and the implementation of new accounting systems.

Q5: What are the benefits of applying PSAK 69?

A5: The benefits of applying PSAK 69 include increased accuracy and reliability of financial statements, improved accounting practices, and increased financial transparency. These benefits can lead to better decision-making by management and stakeholders.

Q6: What are the challenges of applying PSAK 69?

A6: The challenges of applying PSAK 69 include the need for additional disclosures, the complexity of the standard, and the need for training and development programs for accounting staff.

Q7: How can companies prepare for the application of PSAK 69?

A7: Companies can prepare for the application of PSAK 69 by:

Reviewing their current accounting practices and identifying areas for improvement
Implementing new accounting systems and procedures
Providing training and development programs for accounting staff
Conducting regular audits and reviews to ensure compliance with the standard

Q8: What are the consequences of not applying PSAK 69?

A8: The consequences of not applying PSAK 69 can include:

Inaccurate and unreliable financial statements
Poor decision-making by management and stakeholders
Loss of investor confidence and reputation
Non-compliance with regulatory requirements

Conclusion