Solution Percentage Method

Oct 13, 2025 by windailys.com 78 views

Application of PSAK No. 23 in the Recognition and Measurement of Construction Services Income at PT Adhi Karya (Persero) Branch I Medan: Examining the Strategy of the SOE Company in Running a Business

Introduction

In the world of business, every company, including PT Adhi Karya (Persero) Medan Branch I, has a primary goal to achieve in running its operations. The main objectives of construction service companies such as Adhi Karya generally include three key aspects: earning profits, ensuring survival and company growth, and maintaining harmonization with the environment and society. To achieve this goal, companies need to manage and coordinate various management functions, and one of them is maximizing income. Income is a vital factor in the survival and growth of a company, and therefore, recognition and measurement of income becomes the main focus in accounting.

The Importance of PSAK No. 23 in Construction Services Income Recognition

In this case, PSAK No. 23 concerning Revenue is the main guideline for construction companies such as PT Adhi Karya (Persero) Medan Branch in managing its construction services income. PSAK No. 23 regulates how construction companies recognize construction services income. In essence, new revenues can be recognized when the company can be reliably estimate the progress of the work that has been made and can estimate the costs that will be incurred to complete the project.

Application of PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan

The application of PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan has several important aspects. One of the methods used by Adhi Karya (Persero) Branch I Medan is the Solution Percentage Method. This method allows the company to recognize income gradually along with the progress of the project work that has been carried out. This calculation involves estimated costs that will be incurred until the project is complete.

Revenue Recognition Depends on the Progress of the Project

Revenue recognition is carried out proportionally based on the percentage of work progress. This guarantees that income is accurately reflected in the level of project completion. The company must ensure that the revenue recognition is based on the actual progress of the project, and not on any other factors.

The Importance of Cost Estimates

Accurate cost estimation is the key in the application of PSAK No. 23. If the estimated initial cost turns out to change significantly, Adhi Karya (Persero) Branch I Medan must adjust the method of recognition of income and record adjustments in the financial statements. This is to ensure that the financial statements accurately reflect the company's financial position.

Benefits of Applying PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan

The application of PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan provides several benefits, including:

Transparency of Information

PSAK No. 23 Helps ensure that financial information related to income is given transparently and accurately to stakeholders, such as investors, creditors, and government. This is to ensure that the stakeholders have a clear understanding of the company's financial position.

Accuracy of Recording

Revenue recognition methods regulated in PSAK No. 23 guarantees the accuracy in recording income and reducing the potential for errors in calculations. This is to ensure that the financial statements accurately reflect the company's financial position.

Completeness of Financial Statements

PSAK No. 23 Help Adhi Karya (Persero) Branch I Medan prepares complete financial reports and reflects the company's financial condition accurately. This is to ensure that the stakeholders have a clear understanding of the company's financial position.

Conclusion

In the context of the construction business, the application of PSAK No. 23 is an important step in achieving the company's goals, which is to make a profit, ensure survival and growth, and maintain harmony with the environment and the community. As a state-owned company, PT Adhi Karya (Persero) Medan Branch I played an important role in infrastructure development in Indonesia. The application of accurate and transparent accounting standards will guarantee the confidence of stakeholders in the company and support the smooth operation of its business.

Recommendation

Based on the analysis of the application of PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan, it is recommended that the company continues to apply the Solution Percentage Method in recognizing its income. This method has been proven to be effective in ensuring the accuracy of revenue recognition and reducing the potential for errors in calculations. Additionally, the company should ensure that the cost estimates are accurate and up-to-date, and that the revenue recognition is based on the actual progress of the project.

Limitation of the Study

This study has several limitations. Firstly, the study only focuses on the application of PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan, and does not consider other factors that may affect the company's financial position. Secondly, the study only uses secondary data, and does not collect primary data from the company. Finally, the study only analyzes the application of PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan, and does not compare it with other companies in the construction industry.

Future Research

This study provides several opportunities for future research. Firstly, the study can be extended to include other factors that may affect the company's financial position, such as the company's size, industry, and location. Secondly, the study can use primary data collected from the company, and compare it with secondary data. Finally, the study can compare the application of PSAK No. 23 at PT Adhi Karya (Persero) Branch I Medan with other companies in the construction industry.
Q&A: Application of PSAK No. 23 in the Recognition and Measurement of Construction Services Income at PT Adhi Karya (Persero) Branch I Medan

Frequently Asked Questions

Q1: What is PSAK No. 23 and how does it relate to the recognition and measurement of construction services income?

A1: PSAK No. 23 is a regulation issued by the Financial Accounting Standards Board (FASB) that provides guidelines for the recognition and measurement of revenue in construction services. It requires companies to recognize revenue when it is earned, rather than when it is received.

Q2: What is the Solution Percentage Method and how is it used in the application of PSAK No. 23?

A2: The Solution Percentage Method is a method used to recognize revenue in construction services. It involves calculating the percentage of work completed and recognizing revenue based on that percentage. This method is used to ensure that revenue is recognized in a fair and accurate manner.

Q3: What are the benefits of applying PSAK No. 23 in the recognition and measurement of construction services income?

A3: The benefits of applying PSAK No. 23 include increased transparency and accuracy in financial reporting, improved decision-making, and enhanced stakeholder confidence.

Q4: How does the application of PSAK No. 23 impact the financial statements of PT Adhi Karya (Persero) Branch I Medan?

A4: The application of PSAK No. 23 will result in more accurate and transparent financial statements, which will provide stakeholders with a clearer understanding of the company's financial position.

Q5: What are the limitations of this study and how can they be addressed in future research?

A5: The limitations of this study include the use of secondary data and the focus on a single company. Future research can address these limitations by using primary data and comparing the application of PSAK No. 23 across multiple companies.

Q6: What are the implications of this study for the construction industry and for companies like PT Adhi Karya (Persero) Branch I Medan?

A6: The implications of this study are that companies in the construction industry must apply PSAK No. 23 in a fair and accurate manner to ensure transparency and accuracy in financial reporting. This will enhance stakeholder confidence and improve decision-making.

Q7: How can companies like PT Adhi Karya (Persero) Branch I Medan ensure compliance with PSAK No. 23?

A7: Companies can ensure compliance with PSAK No. 23 by implementing a robust accounting system, training staff on the application of PSAK No. 23, and regularly reviewing and updating their financial reporting practices.

Q8: What are the future research directions for this study?

A8: Future research directions include extending the study to include other factors that may affect the company's financial position, using primary data, and comparing the application of PSAK No. 23 across multiple companies.

Q9: How can stakeholders, such as investors and creditors, benefit from the application of PSAK No. 23?

A9: Stakeholders can benefit from the application of PSAK No. 23 by having access to more accurate and transparent financial information, which will enable them to make more informed decisions.

Q10: What are the key takeaways from this study for companies like PT Adhi Karya (Persero) Branch I Medan?

A10: The key takeaways from this study are that companies must apply PSAK No. 23 in a fair and accurate manner to ensure transparency and accuracy in financial reporting, and that they must regularly review and update their financial reporting practices to ensure compliance with the regulation.