Muhammad Adri Hakim 27082017
ANALYSIS OF FACTORS AND EFFECTS OF PSAK 24 REVISI 2013
IMPLEMENTATION IN INTERIM FINANCIAL REPORT 2015
Muhammad Adri Hakim, Dwi Martani
Akuntansi, Fakultas Ekonomi dan Bisnis, Universitas Indonesia
adrihakim91@gmail.com
Abstract
The purpose of this research is to provide empirical evidence about factors that influence the company’s decision
to implement PSAK 24 (2013) Employee Benefits in an interim financial report of 2015, the effects for company
that implement these standard, and how company disclose information related to the implementation and efect of
PSAK 24 in the interim financial report of 2015. This research included companies listed in Indonesia stock
exchange by using logistic regression analysis. The result of this research indicate that implementation of PSAK
24 in interim financial report influenced by market capitalization, number of employee, and auditor. This
research also provides results in which disclosure of the implementation and effect of most companies have been
appliying PSAK 24 in financial interim report of 2015 has been done in accordance with the rules ini PSAK 24.
Keywords:PSAK 24;IAS 19; IFRS; Employee Benefit; Interim Financial Report; IFRS Implementation;
IFRS Convergence.
1. INTRODUCTION
Each company employs a number of employees in its business. Companies are
employers who have obligations to employees that employee benefits. The level of materiality
of the value of the employee benefits will affect how the entity present the information
records of PSAK 24. PSAK 24 changes have a significant effect on the entity that owns the
rewards in the form of defined benefit pension and other long-term benefits.
PSAK 24 (2013) is the adoption of IAS 19 Revised 2011. After 2011, IAS 19
underwent two revisions, namely in 2013 and 2014. Revised PSAK 24 will have an impact on
the presentation of reclassification and so the company had to apply the new method
retrospectively. In the transition mentioned that this applies PSAK retrospectively, except for
the adjustment of asset values and sensitivity analyzes. As a result of these changes the
company will present three statements of financial position comparative year are 2015, 2014
and early comparative period of 2014. Changes in PSAK 24 will also produce other
comprehensive income (OCI) in the statement of income and other comprehensive income
and OCI in equity.
Fasshauer et al., (2008) conducted a study on the application of accounting standards
for employee benefits, IAS 19 Employee Benefit, on companies in 20 European countries.
The companies are analyzed using three methods in the measurement of employee benefits.
The method consists of a full recognition through the Statement of Recognised Income and
Expense (SORIE), full recognition through Profit & Loss, and the 'standard' corridor
approach. The results of these studies show that companies that apply IAS 19 that uses the
latest full recognition method through the Statement of Recognised Income and Expense
(SORIE) better in disclosing information related to employee benefits. The application of IAS
19, based on full recognition through the Statement of Recognised Income and Expense
(SORIE) also carries a significant effect on the balance sheet and income statement. In this
study also suggested that the measurement of employee benefits should only use a single
method that is full recognition through the Statement of Recognised Income and Expense
(SORIE).
Early adoption of of a new standard can be seen as a standard adoption. Research
conducted by Harahap (2010) explained that the decision about the time of change to PSAK
24 on financial statements is influenced by the size of the company, the estimated costs, debt
agreements less restrictive, positive change of Return On Equity (ROE), and public
accounting firms which audits. Larger company tends to be faster in applying PSAK 24, the
company estimates the cost of implementing PSAK 24 is greater, not first to apply, the
company's policy against the debt agreement does not affect the timing of the application of
PSAK 24, companies with positive changes ROE would be faster to apply PSAK 24, and a
large public accounting firms (Big 4), which audits influence to the implementation of PSAK
24.
This research aims to analyze how the application of IAS 24 changes in the interim
financial report 2015. The use of interim financial report will be interesting because there are
many companies that turned out to not apply it in the beginning of the interim period, even
though the application of IAS 24 Revised 2013 effective starting January 1, 2015.
This research consists of an introduction, literature review and hypothesis
development, research methods, research and discussion, and conclusion.
2. LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Employee benefits are all forms of benefits granted an entity in exchange for services
rendered by employees or for the termination of the employment contract. Employee benefits
include benefits granted to workers or their dependents or beneficiaries and may be settled by
payments (or the provision of goods or services), either directly to workers, husbands / wives,
children or other dependents or to others, such as insurance companies.
There are three major changes in the PSAK 24 (2013) which are how to calculate
pension cost, the recognition of actuarial gains and losses, and disclosures. The change will
significantly affect the value of post-employment benefit obligations which will be presented
in the financial statements. The recognition of actuarial gains and losses as a component of
comprehensive income will significantly affect the company's total equity. Disclosures made
more comprehensive by explaining the characteristics, the amount arising from the program
in the financial statements and the sensitivity analysis on defined benefit plans. Revised
PSAK 24 will have an impact on the presentation of reclassification and so companies should
apply retrospectively using the new method.
The application of a new accounting standard due to changes in accounting standards
requires the entity restated financial statements have been published and audited, it is in
accordance with the rules in PSAK 25 regarding accounting policies, changes in accounting
policies, estimates and correction of errors. PSAK 24 (2013) effective on January 1, 2015.
Consequently, the financial statements issued after January 1, 2015 must use the provisions of
the new standard.
According to PSAK No. 3 (2010) Interim Financial Reporting states that interim
financial report is a financial report that contains either a complete financial statement (as
described in PSAK 1 (2009) Presentation of Financial Statements) or a financial report
summary (as described in this Statement) to an interim period. Interim period is a financial
reporting period shorter than a full financial year.
But in reality, not all companies implement new standards when preparing the
interim financial statements. Though described in PSAK 3 that the interim financial
statements are prepared using the accounting policies together with the annual financial
statements. Large companies are the focus of attention of investors that tend to be applying
accounting policies early (Castello et al. 1994). Companies that have larger debts will perform
faster adoption of standards (Sami and Welsh, 1992) but according Castello et al. (1994)
actually found the opposite. According to Amir and Livnat (1996 and Langer and Lev (1993)
companies are adopting standards at baseline had earnings changes are relatively smaller, but
the results are opposite to the Castello et al. (1994) that changes high profit company audited
by the firm of repute high inclined to make early adoption of the standard (Trombley, 1989).
In a study of adoption PSAK 24 Employee benefits by Harahap (2010) found that the total
assets, changes in ROE and auditors have a positive influence on the early adoption of
accounting standards.
Hypothesis Development
Market capitalization is an indicator of the development of a stock market. The
market capitalization of the company's capital illustrates assessed on the number of
outstanding shares and stock prices. The market capitalization has an important role, which
gives an overview of the market capitalization of companies active in the stock market of a
country, so that the information disclosed in the company is very important especially for
investors in the stock market. Companies with large capitalization value tends to be more
attention from investors and prospective investors, because investors generally invest viewed
capitalization and stock price on the exchange. Presentation of information and the application
of an accounting standard that is the latest in the interim financial report is very important in
the decision making for investors and prospective investors, the company should pay more
attention to information presented in the interim financial statements. It was developed in the
following hypothesis:
H1: Companies with larger market capitalization have the possibility in implementing
PSAK 24 (2013) earlier
Companies with a large number of employees, tend to spend more compared to
companies with fewer employees, but the company with a large number of employees who
usually is a great company, international and influential in driving the economic growth of a
country. Companies with a large number of employees who will have the burden and
obligations and employee benefits were great, so that the disclosure of information related to
employee benefits becomes very important. Companies with larger number of employees is
expected to be faster in applying PSAK 24 (2013) because the standard is closely related to
the company's obligation to its employees and also government regulations relating to the
welfare of employees. It was developed in the following hypothesis:
H2: Companies with a larger number of employees have possibility in implementing
PSAK 24 (2013) earlier.
This research was conducted to test whether the debt to equity ratio may affect the
company's decision to implement IAS 24 Revised, 2013 interim financial report. To run its
business activities the company needs funds, in order to run properly. Funds are required to
cover all or part of the cost is required and needs expansion or new investment. According to
Kashmir (2010) Debt to Equity is the ratio used to assess the debt and equity, by comparing
all the debt for equity. The application of IAS 24 Revised 2013 influence to changes in the
value of liabilities and equity. Companies with a larger debt to equity is expected to be faster
in applying IAS 24 Revised, 2013, due to the amount of debt the company is bigger, so the
disclosure of information is expected to be delivered sooner. It was developed in the
following hypothesis:
H3: Companies with
a larger Debt to Equity Ratio (DER) have possibility in
implementing PSAK 24 (2013) earlier.
Harahap (2010) also conducted a research of changes of return on equity (ROE),
change in PSAK 24 (2013) retrospective nature resulted in a change to equity in prior years.
Changes to equity will result in changes ROE, ROE for changes in the past years become a
basic consideration for deciding the application of PSAK 24 (2013), the company with the
change of positive ROE (favorable) is expected to be faster in applying PSAK 24 (2013).
ROE changes that can positively make it easier for management to attract investors and not to
worry on earnings management is done, because small changes in ROE. In this research
carried out modifications where changes favorable ROE is a great change in ROE, ROE great
changes resulted in significant changes to the information, which the company should present
the information as soon as possible. It was developed in the following hypothesis:
H4: Companies with a larger change in Return On Equity (ROE) have possibility in
implementing PSAK 24 (2013) earlier.
Harahap (2010) also mentions that companies audited by public accounting firms
were great also faster in applying PSAK 24 (2013). Revised large public accounting firm will
generally be offered to clients to implement the new standards as soon as possible, due to
large public accounting firms tend to keep the integrity of its affiliates in the world. Large
public accounting firms are considered better understand the regulation of new accounting
standards than small ones, this can be evidenced by the issuance of central module of their
affiliates if the new standards are issued. Therefore the companies audited by a large public
accounting firms are expected to be faster in implementing PSAK 24 (2013). It was
developed into a hypothesis as follows:
H5: Companies audited by a public accountant's office "Big 4" have possibility in
implementing PSAK 24 (2013) earlier.
3. RESEARCH METHODS
This research is using descriptive statistical analysis, logistic regression, and
qualitative analysis. This research aimed to analyze the factors and the impact of PSAK 24
(2013) in an interim financial report 2015. The analysis also conducted on disclosures relating
to the implementation of PSAK 24 (2013).
This research uses regression model similar to the regression model on research
Harahap (2010) with modifications. Here is a model of research that will be used:
Adoption Timing = α + ᵝ1 CAP + ᵝ2 EMPLOYEE + ᵝ3 DER + ᵝ4 ROECHANGE +
ᵝ6 AUDITOR + ε
Adoption
Timing
CAP
EMPLOYEE
DER
ROECHANGE
: Dummy variable, the value 1 to companies that adopt PSAK 24
(2013) of the interim financial statements and the value 0 for
companies that do not adopt in the interim financial report 2015
: The market capitalization value in 2015
: The number of employees of the company in 2014
: Debt to Equity Ratio 2014
: Return On Equity change from 2013 to 2014
AUDITOR
: Dummy, value 1 to companies audited by audit firms "Big 4" and the
value 0 for companies that are not audited by audit firms "Big 4"
The dependent variable is the variable that is observed and measured to determine
the effects caused by the independent variable. The dependent variable in this study is an
interim financial report 1st quarter (Q1), second quarter (Q2) and third quarter (Q3) 2015 as
liabilities of the company to comply with applicable regulations in the PSAK. This variable is
a dummy variable that will be worth 1 if a company has done the application of PSAK 24
(2013) and a dummy variable will be 0 if a company has not made the application of PSAK
24 (2013).
Variable market capitalization (CAP) is the real value of the market capitalization of
the company until December 31, 2015. The market capitalization of demonstrating the value
of securities listed on the stock exchange, is defined as the total number of securities issued by
companies in the capital market.
Variable employee (EMPLOYEE) is the number of employees reported in the
company's annual financial statements 2015. Employees are the primary asset in a company,
because no employees, activities of the company will not be able to walk. Employees is the
seller of services (mind and energy) and gain compensation (wages), the amount has been set
in advance (Hasibuan, 2002).
Debt to Equity Ratio (DER) is an indicator of the proportion of the company's debt to
the investments made by the shareholders. DER high value shows the total debt (short-term
and long-term) greater than the capital or equity, so this will have an impact on the greater
burden on the creditor company. The increased burden on the creditor shall indicate the source
of the company's capital is highly dependent on external parties, and vice versa if the value of
small DER. In this study, the value of DER use from DER value of 2014, the use of DER
from 2014 due to new PSAK 24 (2013) effectively implemented since January 1, 2015, where
the decision on its implementation is influenced by the DER value of the previous year.
Changes return on equity (ROE) shows the company's ability to generate net income
by using their own capital and net income available to owners or investors. The value of the
roe was absolute change in value will still be positive even though the results were negative.
In this research using the values of changes in ROE from 2013 to 2014, the use of changes in
ROE from 2013 to 2014 because of the new PSAK 24 (2013) effectively implemented since
January 1, 2015, where the decision on its implementation is influenced by the value of the
change in ROE from the previous year.
Public Accounting Firm (KAP), is a business entity incorporated under the
provisions of law and obtain a business license under UU No. 5 Tahun 2011 on Public
Accountant. Firm size is a measure used to determine the size of a public accounting firm. In
much of the literature, the size of a large public accounting firms say if affiliated with the Big
4. Big 4 international accounting firm is the fourth highest income Deloitte,
PriceWaterhouseCoopers, Ernst & Young, and KPMG International. KAP are believed to
conduct an audit of a higher quality than the small KAP (DeAngelo, 1981; Brooks, 2012; Bae
and Lee, 2013).
On research the application of PSAK 24 (2013) in an interim financial report in
2015, the population selected from companies listed in the Indonesia Stock Exchange (IDX)
until December 31, 2015 as many as 518 companies. Samples taken only company that has a
relatively sufficient financial information for the study. The sample used using purposive
sampling judgment so that the sample was selected based on certain criteria and not selected
randomly. Based on this sampling technique, the final number of 518 population sample for
the research model is 487, as shown in Table 1.
Tabel 1 Sample Selection
Criteria
Amount of Companies
Companies listed in the Indonesia Stock Exchange
until December 31, 2015
518
The company which is newly registered in 2015
13
Companies that do not submit the Financial
Statements 2014
15
Companies with incomplete data
3
Total Observations (Sample)
487
4. RESULTS AND DISCUSSION
Statistic descriptive analysis is used to look at the characteristics, distribution of data,
and the reasonableness of the data to be used. Statistic descriptive results shown in Table 2.
Table 2 Statistic Descriptive
Observations
Mean
Standard
Deviation
Minimum
Maximum
CAP (Jutaan)
487
9.211.790
35.842.644
10.200
437.355.969
EMPLOYEE
487
3.577,40
10.287,56
2
156.097,00
DER
487
1,49
5,22
-64,71
28,19
ROECHANGE
487
0,52
66,14
0,01
946,3
Sample Conditions
Amount
Percentage
Applied (1)
72
14,80%
Not yet Applied (0)
415
85,20%
Applied (1)
115
23,60%
Not yet Applied (0)
372
76,40%
Applied (1)
194
39,60%
Not yet Applied (0)
293
60,40%
Audited by BIG 4 (1)
191
39,20%
Not Audited by BIG 4 (0)
296
60,80%
Variabel
Independent Variable:
Variabel Dummy:
Variabel
Observations
Dependent Variable:
Adoption Timing
Q1
487
Q2
487
Q3
487
Independent Variable:
AUDITOR
487
The results test of statistic descriptive can be seen in Table 2, from a sample of 487
companies listed in the Indonesia Stock Exchange, showed only 72 companies, or about
14.8% of the total sample were already applying PSAK 24 (2013). The companies are already
implementing PSAK 24 (2013) since January 1, 2015. the application was accompanied by a
calculation of the impact of adoption of PSAK 24 (2013) in the statement of changes in equity
other comprehensive income is part of the income statement, and notes to the financial
statements. These companies are among others Astra Agro Lestari Tbk, Adhi Karya (Persero)
Tbk, Bank Central Asia Tbk, Bumi Serpong Damai Tbk and PT Telekomunikasi Indonesia
(Persero) Tbk.
In Q2, the company has applied PSAK 24 (2013) in Q1 also be taken into account
that as many as 72 companies (14.8%), because if it had adopted PSAK 24 (2013) in Q1, then
directly already implementing in Q2. The Company has applied PSAK 24 in Q2 cumulative
115 companies or 23.6% of the total sample. Companies that totally new implement in Q2 as
many as 41 companies. Such companies include Astra International Tbk, Bank Danamon
Indonesia Tbk, Ciputra Development Tbk, Kimia Farma (Persero) Tbk, and Holcim Indonesia
Tbk.
In Q3, the company has applied PSAK 24 (2013) in Q2 was also incorporated into
the calculations as many as 115 companies (23.6%), because if it had adopted PSAK 24
(2013) in Q1 and Q2, then directly've implemented in Q3. The number of companies that have
applied PSAK 24 (2013) in Q3 cumulatively that 194 companies, or 39.8% of the total
sample. Companies that totally new implement in Q3 as many as 80 companies. Companies,
among others Adira Dinamika Multi Finance Tbk, Agung Podomoro Land Tbk, Shoes Bata
Tbk, Bank Mandiri (Persero) Tbk, and Pembangunan Jaya Ancol Tbk.
The next analysis is analysis using regression models. Regression model testing done
by logistic regression, because the dependent variable is a dummy. The test results of logistic
regression models shown in Table 3.
Table 3 Result of Regression Models
Description
Q1
Q2
Q3
B
Sig
B
Sig
B
Sig
CAP
0,458
0,000**
0,452
0,000**
0,372
0,000**
EMPLOYEE
0,051
0,134
0,066
0,035**
0,054
0,083*
DER
-0,010
0,847
-0,030
0,534
-0,022
0,590
ROE
0,008
0,492
0,002
0,826
0,000
0,972
AUDITOR
0,393
0,183
0,060
0,812
0,275
0,202
Observation
Prob>Chi-Square
N R-sq
487
487
487
0
0
0
22,10%
23,00%
20,20%
* Significant on level 10% ; ** Significant on level 5%
From the results of these tests show that the independent variable EMPLOYEE and
CAP have significant effect on the application of PSAK 24 (2013) in Interim Financial
Reports 2015 as the dependent variable. In Q1 CAP variables have significant variables with
the value of each 0,000, the value is smaller than the value of α = 0.05. In Q2 CAP and
EMPLOYEE variables that have a significant influence, with respective values of 0.000 and
0.035. In Q3 CAP variable, with a value of 0.000, while the variable EMPLOYEE becomes
insignificant. Variable DER and ROE are insignificant in every quarter in 2015. This indicates
that a significant factor determining companies applying PSAK 24 (2013) in interim financial
report is a market capitalization (CAP) and the number of employees (EMPLOYEE).
So the first hypothesis that larger capitalization companies tend to be faster in
applying PSAK 24 (2013) in interim financial statements and the second hypothesis the
company with larger number of employees tend to be faster in applying IAS 24 Revised 2013
in the interim financial statements is acceptable. Variable DER, ROE, and AUDITOR no
significant effect on the company's decision to determine the applicability of PSAK 24 (2013)
in interim financial statements, so the hypothesis third, fourth, and fifth is not proven.
In this research, also conducted a sensitivity test. Test sensitivity is done by issuing a
variable CAP. Sensitivity test results are shown in Table 4. The sensitivity of the test results
showed different results with the results of previous regression testing. The regression results
show that the sensitivity test variable EMPLOYEE and AUDITOR be significant. AUDITOR
variable becomes significant, when the variable CAP is issued. Variable AUDITOR and CAP
have a strong relationship, this is evidenced by the correlation test in SPSS, which the Auditor
and the CAP have a strong relationship, but the relationship is strong does not show
symptoms multicolinearity, it has also been proven in testing the regression model, where all
variables we tested did not have any symptoms multikolinearitas. The relationship between
the Auditor and the strong CAP may occur due to CAP and AUDITOR associated with firm
size. Companies that are likely to have large market capitalization and audited by public
accountant "Big 4".
Tabel 4 Hasil Uji Sensitifitas
Description
Q1
Q2
Q3
B
Sig
B
Sig
B
Sig
EMPLOYEE
0,137
0,000**
0,152
0,000**
0,135
0,000**
DER
0,002
0,962
-0,016
0,718
-0,013
0,730
ROE
0,001
0,935
-0,003
0,712
-0,005
0,565
AUDITOR
0,716
0,011**
0,393
0,097*
0,537
0,008**
Observasi
Prob>Chi-Square
N R-sq
487
487
487
0
0
0
13,50%
13,10%
11,7
20,20%
* Significant on level 10%; ** Significant on level 5%
In this research also analyzed the impact of the disclosure of the presentation of PSAK
24 (2013). The impact of adoption of PSAK 24 (2013) include the company must make the
restatement on the financial statements of previous years and the emergence of actuarial gain
or loss in other comprehensive income. Based on the analysis of the companies that already
implemented in Q1, Q2, and Q3 result, At companies that apply PSAK 24 (2013) in Q1 there
were 65 of the 72 companies that restated, while seven companies have not been restated, 7
companies that have not been restated its financial statements recently restated in Q2 and Q3.
Companies that apply PSAK 24 (2013) in Q2, as many as 43 companies have restated their
financial statements, companies that apply PSAK 24 (2013) in Q2 everything has restated its
financial statements. In Q3 as many as 45 companies have been restated, while 34 companies
have not been restated.
The application of PSAK 24 (2013) financial statements also give rise to actuarial
gains or losses in the statement of income and other comprehensive income. Companies that
apply PSAK 24 (2013) are generally split into two its comprehensive income items that are
classified in the income and items not classified in income in accordance with the rules in
PSAK 1 (2013). Revised actuarial gains or losses that arise will be in posts are not classified
in profit and loss. Of the 72 companies that apply PSAK 24 (2013) in Q1, as many as 41
companies halve its comprehensive income, while the rest do not make distributions on its
comprehensive income. In Q2 of 43 new companies to apply PSAK 24 (2013), as many as 37
companies to halve its comprehensive income. Of the 79 new companies to apply PSAK 24
(2013) in Q3, as many as 46 companies already halve its comprehensive income.
5. CONCLUSION
Based on the research results and the analysis conducted, it can be concluded that
there are still many companies that have not applied PSAK 24 (2013) in interim financial
statements, even until the third quarter (Q3) 2015. In Q1 there are 72 companies that have
applied and 415 companies not apply. In Q2 cumulatively there are 115 companies that have
applied, while 372 companies have yet to implement. In Q3 cumulatively There are 194
companies that have applied and 293 companies have not implemented. Despite the increase
of the company applying the PSAK 24 (2013) in an interim financial report in 2013, but the
company did not apply the amount still greater.
Market capitalization and number of employees have significant effect on the
application of PSAK 24 (2013) in the interim financial statements of 2015. The results of the
sensitivity test showed that the auditor has significant influence in the company's
consideration to apply PSAK 24 (2013) in interim financial statements, it is possible that the
influence of auditors offset by the effect of market capitalization in the first logistic
regression, because a strong relationship between the auditor and market capitalization related
to the size of the company. The impact of the adoption of PSAK 24 (2013) company must
restated (restatement) to the financial statements of previous years. The restatement resulted
in a change in particular in liabilities and equity reported by the company. The application of
PSAK 24 (2013) also resulted in the emergence of an actuarial loss or gain in the company's
income statement. Companies that apply that apply PSAK 24 (2013) should be disclosure
presentation correctly, but there are still many companies that do not yet precisely such
disclosures are not restated or not to do the classification of gains / losses are in the income
statement. The application of PSAK 24 (2013) also resulted in a decrease in the value of DER
and ROE.
This research has limitations that this research uses the number of companies listed
on the site Indonesia stock exchange until December 31, 2015, the addition of the company
after the date of December 31, 2015 are not included in the population and the measurement
of the application of PSAK 24 (2013) in the financial statements using the information
presentation in the report financial position, statements of income and other comprehensive
income, statement of changes in equity and notes to the financial statements. Measurement of
the implementation of PSAK 24 (2013) does not pay attention to whether the company uses a
defined benefit plan or a defined benefit, fearing they would extend the time of the study.
This research also provides empirical evidence to regulators, standard setters, and
users of financial statements that many companies listed on the exchange have not applied the
standards should be. Regulators should provide more oversight or, if necessary sanctions for
companies that do not implement the standard as appropriate, for the standard setters are
expected to be in conducting socialization and gather suggestions from companies, for users
of financial statements are expected to be more careful in reading and using the information in
interim financial statements.
REFERENCES
Ankarath,
Nandakumar.
(2012).
Memahami
IFRS:
Standar
Pelaporan
Keuangan
Internasional. Jakarta: PT. Indeks
Armstrong, C.S., M.E. Barth, A.D. Jagolinzer, and E.J. Riedl. (2010) “Market Reaction to the
Adoption IFRS in Europe” The Accounting Review 85.
Atkins, Allen B and Edward A Dyl. (1997). “Transaction Cost and Holding Periods for
Common Stocks.” Journal of Finance, vol. 52 (1).
Bae, G. S. & Lee, J. E. (2013). “Does Audit Firm Size Matter? The Effect of Audit Firm Size
Measured by Audit Firm Revenues, Number of Offices, and Professional Headcounts
on Audit Quality and Audit Fees.” Journal of Accounting Research.
Ball, R. (2006). “International Financial Reporting Standards (IFRS): Pros and Cons for
Investors.” Accounting and Business Research, International Accounting Policy
Forum.
Ball, R., A. Robin, and J. Wu. (2003). “Incentives Versus Standards: Properties of Accounting
Income in Four East Asian Countries.” Journal of Accounting and Economics 36.
Brooks, L., Cheng, C.S.A., Johnston, J. and Reichelt, K.J. (2011). “ When does Audit Quality
start to decline in Firm Audit Tenure? – An international analysis.” Working Paper,
Louisiana State University.
Chen H., Tan, Q., Jiang, Y., & Lin, Z. (2010). “The role of international financial reporting
standards in accounting quality: Evidence from European Union.” Journal of
international Financial Manaement and Accounting 21.
Choi, F., and Meek, G. 2011.International Accounting, 7th edition, New York: Pearson
Education.
Chua, Yi Lin, C. S. Cheong & G. Gould. (2012). “The Impact of Mandatory IFRS Adoption
on Accounting Quality: Evidence from Australia.” Journal of International
Accounting Research, vol. 8 (2).
Costello, Ann, Harriet F. Farney, Aurelle S. Locke. (1994). “Accounting for Postretirement
Benefits: Early Adopters of SFAS 106.” Benefits Quarterly. Fourth Quarter.
Daske, H., L. Hail, C. Leuz, and R.Verdi. (2008). “Mandatory IFRS Reporting around the
World: Early Evidence on the Economic Consequences.” Journal of Accounting
Research 46.
DeAngelo, L. E. (1981). “Auditor Size and Audit Quality.” Journal of Accounting and
Economics 3 (3).
Dhaliwal, D., Wen, H., Li, Y. and Pereira, R. (2013). “Does mandatory IFRS Adoption
Facilitate Financial Market Integration”, Consequences of IFRS Adoption, American
Accounting
Association,
Annual
Meeting
and
Conferences,
ANAHEIM,
CALIFORNIA.
Fasshauer, J., Glaum, M. and Street, D.L. (2008). “Adoption of IAS 19 by Europe’s Premier
Listed
Companies”,
research
report
no.100.
www.accaglobal.com/pubs/general/activities/research/research_archive/rr-100001.pdf, accessed 20 November 2015.
Ghozali, Imam. (2012). Aplikasi Analisis Multivarian dengan program IBM SPSS 20, edisi 6.
Semarang: Badan Penerbit Universitas Diponegoro
Hail, L., C. Leuz, and P. Wysocki. (2009) “Global Accounting Convergence and the potential
Adoption of IFRS by United States: An Analysis of Economic and Policy Factors.”
Independent Research to the U.S. FASB.
Harahap, Siti N. (2010). “Economic Motives of Adoption Timing Decision : The Case of The
Revised of The Indonesian GAAP 24 on Employee Benefits.” Asia Pasific Journal
of Accounting and Finance, Vol 1 (1) : 103 – 113.
Hasibuan, Melayu S.P. (2002). Manajemen Sumber Daya Manusia. Jakarta: Bumi Aksara
IFRS, Official Website, November 23, 2015 http://www.ifrs.org/
Ikatan Akuntan Indonesia, Official Website, November 23, 2015 http://www.iaiglobal.or.id/
Indonesia Stock Exchange, Official Website, January 3, 2016 http://www.idx.co.id/
International Accounting Standard No. 19 Employee Benefits (Revised 2011).
Kieso, D.E., Weygandt, J. J., & Warield, T.D. (2015). Intermediate Accounting IFRS Edition.
New Jersey : John Wiley & Sons Ltd.
Martani, Dwi. (2012). Dampak Implementasi IFRS Bagi Perusahaan. Depok : Jurnal
Akuntansi www.academia.edu
Martani, Dwi. (2015). PSAK 24 Imbalan Kerja – IAS 19 Employee Benefit. Depok : Jurnal
Akuntansi www.academia.edu
Neag, Ramona. (2014). The effects of IFRS on net income and equity: evidence from
Romanian listed companies. Procedia Economics and Finance, 15, 1787-1790.
Palea, Vera. (2013). :IAS/IFRS and financial reporting quality: Lessons from the European
experience.” China Journal of Accounting Research, 6, 247-263.
Pangabean, R. R. (2007). “Studi Banding PSAK dengan IFRS Menghadapi Penerapan IFRS
Secara Menyeluruh di Indonesia.” Tesis Pascasarjana Universitas Indonesia,
Jakarta.
Pernyataan Standar Akuntansi Keuangan No. 24 Imbalan Kerja (Revisi 2013).
Pernyataan Standar Akuntansi Keuangan No. 3 Laporan Keuangan Interim (Revisi 2010).
Ross, Stephen A., Westerfield, Randolph W. and Jordan, Bradford D. (1991). Corporate
Financial Fundamental, 7th edition. New York: McGraw-Hill Education International
Edition copyright 2006.
Sami, Heibatollah, Mary Jeanne Welsh. (1992). “Characteristics of Early and Late Adopters of
Pension Accounting Standards SFAS No.87.” Contemporary Accounting Research.
Scoot, T. (1991). In Langer and Lev, “Pension Disclosures under SFAS No.87: Theory and
Evidence.” Contemporary Accounting Research 8 (Fall), 1993.
Trombley, Mark A. (1989). “Accounting Method Choice in the Software Industry:
Characteristics of Firms Electing Early Adoption of SFAS No.86.” The Accounting
Review. LXIV, No.3.
Undang-undang Nomor 13 Tahun 2003 Tentang Ketenagakerjaan.
Wardhani, Ratna. (2009). “Pengaruh Proteksi Bagi Investor, Konvergensi Standar Akuntansi,
Implementasi Corporate Governance dan Kualitas Audit terhadap Kualitas Laba:
Analisis Lintas Negara di Asia.” Disertasi Program Studi Ilmu Akuntansi
Pascasarjana Fakultas Ekonomi Universitas Indonesia.
Weele, Marjolein L. van der. (2011). “Restatement Announcements: The Effects of Audit
Quality on The Market Reaction.” Master Thesis, Tilburg University.
Zehri, Fatma & Jamel Chouaibi. (2013). “Adoption determinants of the International
Accounting Standards IAS/IFRS by the developing countries.” Journal of Economics,
Finance and Administrative Science, 18.
IMPLEMENTATION IN INTERIM FINANCIAL REPORT 2015
Muhammad Adri Hakim, Dwi Martani
Akuntansi, Fakultas Ekonomi dan Bisnis, Universitas Indonesia
adrihakim91@gmail.com
Abstract
The purpose of this research is to provide empirical evidence about factors that influence the company’s decision
to implement PSAK 24 (2013) Employee Benefits in an interim financial report of 2015, the effects for company
that implement these standard, and how company disclose information related to the implementation and efect of
PSAK 24 in the interim financial report of 2015. This research included companies listed in Indonesia stock
exchange by using logistic regression analysis. The result of this research indicate that implementation of PSAK
24 in interim financial report influenced by market capitalization, number of employee, and auditor. This
research also provides results in which disclosure of the implementation and effect of most companies have been
appliying PSAK 24 in financial interim report of 2015 has been done in accordance with the rules ini PSAK 24.
Keywords:PSAK 24;IAS 19; IFRS; Employee Benefit; Interim Financial Report; IFRS Implementation;
IFRS Convergence.
1. INTRODUCTION
Each company employs a number of employees in its business. Companies are
employers who have obligations to employees that employee benefits. The level of materiality
of the value of the employee benefits will affect how the entity present the information
records of PSAK 24. PSAK 24 changes have a significant effect on the entity that owns the
rewards in the form of defined benefit pension and other long-term benefits.
PSAK 24 (2013) is the adoption of IAS 19 Revised 2011. After 2011, IAS 19
underwent two revisions, namely in 2013 and 2014. Revised PSAK 24 will have an impact on
the presentation of reclassification and so the company had to apply the new method
retrospectively. In the transition mentioned that this applies PSAK retrospectively, except for
the adjustment of asset values and sensitivity analyzes. As a result of these changes the
company will present three statements of financial position comparative year are 2015, 2014
and early comparative period of 2014. Changes in PSAK 24 will also produce other
comprehensive income (OCI) in the statement of income and other comprehensive income
and OCI in equity.
Fasshauer et al., (2008) conducted a study on the application of accounting standards
for employee benefits, IAS 19 Employee Benefit, on companies in 20 European countries.
The companies are analyzed using three methods in the measurement of employee benefits.
The method consists of a full recognition through the Statement of Recognised Income and
Expense (SORIE), full recognition through Profit & Loss, and the 'standard' corridor
approach. The results of these studies show that companies that apply IAS 19 that uses the
latest full recognition method through the Statement of Recognised Income and Expense
(SORIE) better in disclosing information related to employee benefits. The application of IAS
19, based on full recognition through the Statement of Recognised Income and Expense
(SORIE) also carries a significant effect on the balance sheet and income statement. In this
study also suggested that the measurement of employee benefits should only use a single
method that is full recognition through the Statement of Recognised Income and Expense
(SORIE).
Early adoption of of a new standard can be seen as a standard adoption. Research
conducted by Harahap (2010) explained that the decision about the time of change to PSAK
24 on financial statements is influenced by the size of the company, the estimated costs, debt
agreements less restrictive, positive change of Return On Equity (ROE), and public
accounting firms which audits. Larger company tends to be faster in applying PSAK 24, the
company estimates the cost of implementing PSAK 24 is greater, not first to apply, the
company's policy against the debt agreement does not affect the timing of the application of
PSAK 24, companies with positive changes ROE would be faster to apply PSAK 24, and a
large public accounting firms (Big 4), which audits influence to the implementation of PSAK
24.
This research aims to analyze how the application of IAS 24 changes in the interim
financial report 2015. The use of interim financial report will be interesting because there are
many companies that turned out to not apply it in the beginning of the interim period, even
though the application of IAS 24 Revised 2013 effective starting January 1, 2015.
This research consists of an introduction, literature review and hypothesis
development, research methods, research and discussion, and conclusion.
2. LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Employee benefits are all forms of benefits granted an entity in exchange for services
rendered by employees or for the termination of the employment contract. Employee benefits
include benefits granted to workers or their dependents or beneficiaries and may be settled by
payments (or the provision of goods or services), either directly to workers, husbands / wives,
children or other dependents or to others, such as insurance companies.
There are three major changes in the PSAK 24 (2013) which are how to calculate
pension cost, the recognition of actuarial gains and losses, and disclosures. The change will
significantly affect the value of post-employment benefit obligations which will be presented
in the financial statements. The recognition of actuarial gains and losses as a component of
comprehensive income will significantly affect the company's total equity. Disclosures made
more comprehensive by explaining the characteristics, the amount arising from the program
in the financial statements and the sensitivity analysis on defined benefit plans. Revised
PSAK 24 will have an impact on the presentation of reclassification and so companies should
apply retrospectively using the new method.
The application of a new accounting standard due to changes in accounting standards
requires the entity restated financial statements have been published and audited, it is in
accordance with the rules in PSAK 25 regarding accounting policies, changes in accounting
policies, estimates and correction of errors. PSAK 24 (2013) effective on January 1, 2015.
Consequently, the financial statements issued after January 1, 2015 must use the provisions of
the new standard.
According to PSAK No. 3 (2010) Interim Financial Reporting states that interim
financial report is a financial report that contains either a complete financial statement (as
described in PSAK 1 (2009) Presentation of Financial Statements) or a financial report
summary (as described in this Statement) to an interim period. Interim period is a financial
reporting period shorter than a full financial year.
But in reality, not all companies implement new standards when preparing the
interim financial statements. Though described in PSAK 3 that the interim financial
statements are prepared using the accounting policies together with the annual financial
statements. Large companies are the focus of attention of investors that tend to be applying
accounting policies early (Castello et al. 1994). Companies that have larger debts will perform
faster adoption of standards (Sami and Welsh, 1992) but according Castello et al. (1994)
actually found the opposite. According to Amir and Livnat (1996 and Langer and Lev (1993)
companies are adopting standards at baseline had earnings changes are relatively smaller, but
the results are opposite to the Castello et al. (1994) that changes high profit company audited
by the firm of repute high inclined to make early adoption of the standard (Trombley, 1989).
In a study of adoption PSAK 24 Employee benefits by Harahap (2010) found that the total
assets, changes in ROE and auditors have a positive influence on the early adoption of
accounting standards.
Hypothesis Development
Market capitalization is an indicator of the development of a stock market. The
market capitalization of the company's capital illustrates assessed on the number of
outstanding shares and stock prices. The market capitalization has an important role, which
gives an overview of the market capitalization of companies active in the stock market of a
country, so that the information disclosed in the company is very important especially for
investors in the stock market. Companies with large capitalization value tends to be more
attention from investors and prospective investors, because investors generally invest viewed
capitalization and stock price on the exchange. Presentation of information and the application
of an accounting standard that is the latest in the interim financial report is very important in
the decision making for investors and prospective investors, the company should pay more
attention to information presented in the interim financial statements. It was developed in the
following hypothesis:
H1: Companies with larger market capitalization have the possibility in implementing
PSAK 24 (2013) earlier
Companies with a large number of employees, tend to spend more compared to
companies with fewer employees, but the company with a large number of employees who
usually is a great company, international and influential in driving the economic growth of a
country. Companies with a large number of employees who will have the burden and
obligations and employee benefits were great, so that the disclosure of information related to
employee benefits becomes very important. Companies with larger number of employees is
expected to be faster in applying PSAK 24 (2013) because the standard is closely related to
the company's obligation to its employees and also government regulations relating to the
welfare of employees. It was developed in the following hypothesis:
H2: Companies with a larger number of employees have possibility in implementing
PSAK 24 (2013) earlier.
This research was conducted to test whether the debt to equity ratio may affect the
company's decision to implement IAS 24 Revised, 2013 interim financial report. To run its
business activities the company needs funds, in order to run properly. Funds are required to
cover all or part of the cost is required and needs expansion or new investment. According to
Kashmir (2010) Debt to Equity is the ratio used to assess the debt and equity, by comparing
all the debt for equity. The application of IAS 24 Revised 2013 influence to changes in the
value of liabilities and equity. Companies with a larger debt to equity is expected to be faster
in applying IAS 24 Revised, 2013, due to the amount of debt the company is bigger, so the
disclosure of information is expected to be delivered sooner. It was developed in the
following hypothesis:
H3: Companies with
a larger Debt to Equity Ratio (DER) have possibility in
implementing PSAK 24 (2013) earlier.
Harahap (2010) also conducted a research of changes of return on equity (ROE),
change in PSAK 24 (2013) retrospective nature resulted in a change to equity in prior years.
Changes to equity will result in changes ROE, ROE for changes in the past years become a
basic consideration for deciding the application of PSAK 24 (2013), the company with the
change of positive ROE (favorable) is expected to be faster in applying PSAK 24 (2013).
ROE changes that can positively make it easier for management to attract investors and not to
worry on earnings management is done, because small changes in ROE. In this research
carried out modifications where changes favorable ROE is a great change in ROE, ROE great
changes resulted in significant changes to the information, which the company should present
the information as soon as possible. It was developed in the following hypothesis:
H4: Companies with a larger change in Return On Equity (ROE) have possibility in
implementing PSAK 24 (2013) earlier.
Harahap (2010) also mentions that companies audited by public accounting firms
were great also faster in applying PSAK 24 (2013). Revised large public accounting firm will
generally be offered to clients to implement the new standards as soon as possible, due to
large public accounting firms tend to keep the integrity of its affiliates in the world. Large
public accounting firms are considered better understand the regulation of new accounting
standards than small ones, this can be evidenced by the issuance of central module of their
affiliates if the new standards are issued. Therefore the companies audited by a large public
accounting firms are expected to be faster in implementing PSAK 24 (2013). It was
developed into a hypothesis as follows:
H5: Companies audited by a public accountant's office "Big 4" have possibility in
implementing PSAK 24 (2013) earlier.
3. RESEARCH METHODS
This research is using descriptive statistical analysis, logistic regression, and
qualitative analysis. This research aimed to analyze the factors and the impact of PSAK 24
(2013) in an interim financial report 2015. The analysis also conducted on disclosures relating
to the implementation of PSAK 24 (2013).
This research uses regression model similar to the regression model on research
Harahap (2010) with modifications. Here is a model of research that will be used:
Adoption Timing = α + ᵝ1 CAP + ᵝ2 EMPLOYEE + ᵝ3 DER + ᵝ4 ROECHANGE +
ᵝ6 AUDITOR + ε
Adoption
Timing
CAP
EMPLOYEE
DER
ROECHANGE
: Dummy variable, the value 1 to companies that adopt PSAK 24
(2013) of the interim financial statements and the value 0 for
companies that do not adopt in the interim financial report 2015
: The market capitalization value in 2015
: The number of employees of the company in 2014
: Debt to Equity Ratio 2014
: Return On Equity change from 2013 to 2014
AUDITOR
: Dummy, value 1 to companies audited by audit firms "Big 4" and the
value 0 for companies that are not audited by audit firms "Big 4"
The dependent variable is the variable that is observed and measured to determine
the effects caused by the independent variable. The dependent variable in this study is an
interim financial report 1st quarter (Q1), second quarter (Q2) and third quarter (Q3) 2015 as
liabilities of the company to comply with applicable regulations in the PSAK. This variable is
a dummy variable that will be worth 1 if a company has done the application of PSAK 24
(2013) and a dummy variable will be 0 if a company has not made the application of PSAK
24 (2013).
Variable market capitalization (CAP) is the real value of the market capitalization of
the company until December 31, 2015. The market capitalization of demonstrating the value
of securities listed on the stock exchange, is defined as the total number of securities issued by
companies in the capital market.
Variable employee (EMPLOYEE) is the number of employees reported in the
company's annual financial statements 2015. Employees are the primary asset in a company,
because no employees, activities of the company will not be able to walk. Employees is the
seller of services (mind and energy) and gain compensation (wages), the amount has been set
in advance (Hasibuan, 2002).
Debt to Equity Ratio (DER) is an indicator of the proportion of the company's debt to
the investments made by the shareholders. DER high value shows the total debt (short-term
and long-term) greater than the capital or equity, so this will have an impact on the greater
burden on the creditor company. The increased burden on the creditor shall indicate the source
of the company's capital is highly dependent on external parties, and vice versa if the value of
small DER. In this study, the value of DER use from DER value of 2014, the use of DER
from 2014 due to new PSAK 24 (2013) effectively implemented since January 1, 2015, where
the decision on its implementation is influenced by the DER value of the previous year.
Changes return on equity (ROE) shows the company's ability to generate net income
by using their own capital and net income available to owners or investors. The value of the
roe was absolute change in value will still be positive even though the results were negative.
In this research using the values of changes in ROE from 2013 to 2014, the use of changes in
ROE from 2013 to 2014 because of the new PSAK 24 (2013) effectively implemented since
January 1, 2015, where the decision on its implementation is influenced by the value of the
change in ROE from the previous year.
Public Accounting Firm (KAP), is a business entity incorporated under the
provisions of law and obtain a business license under UU No. 5 Tahun 2011 on Public
Accountant. Firm size is a measure used to determine the size of a public accounting firm. In
much of the literature, the size of a large public accounting firms say if affiliated with the Big
4. Big 4 international accounting firm is the fourth highest income Deloitte,
PriceWaterhouseCoopers, Ernst & Young, and KPMG International. KAP are believed to
conduct an audit of a higher quality than the small KAP (DeAngelo, 1981; Brooks, 2012; Bae
and Lee, 2013).
On research the application of PSAK 24 (2013) in an interim financial report in
2015, the population selected from companies listed in the Indonesia Stock Exchange (IDX)
until December 31, 2015 as many as 518 companies. Samples taken only company that has a
relatively sufficient financial information for the study. The sample used using purposive
sampling judgment so that the sample was selected based on certain criteria and not selected
randomly. Based on this sampling technique, the final number of 518 population sample for
the research model is 487, as shown in Table 1.
Tabel 1 Sample Selection
Criteria
Amount of Companies
Companies listed in the Indonesia Stock Exchange
until December 31, 2015
518
The company which is newly registered in 2015
13
Companies that do not submit the Financial
Statements 2014
15
Companies with incomplete data
3
Total Observations (Sample)
487
4. RESULTS AND DISCUSSION
Statistic descriptive analysis is used to look at the characteristics, distribution of data,
and the reasonableness of the data to be used. Statistic descriptive results shown in Table 2.
Table 2 Statistic Descriptive
Observations
Mean
Standard
Deviation
Minimum
Maximum
CAP (Jutaan)
487
9.211.790
35.842.644
10.200
437.355.969
EMPLOYEE
487
3.577,40
10.287,56
2
156.097,00
DER
487
1,49
5,22
-64,71
28,19
ROECHANGE
487
0,52
66,14
0,01
946,3
Sample Conditions
Amount
Percentage
Applied (1)
72
14,80%
Not yet Applied (0)
415
85,20%
Applied (1)
115
23,60%
Not yet Applied (0)
372
76,40%
Applied (1)
194
39,60%
Not yet Applied (0)
293
60,40%
Audited by BIG 4 (1)
191
39,20%
Not Audited by BIG 4 (0)
296
60,80%
Variabel
Independent Variable:
Variabel Dummy:
Variabel
Observations
Dependent Variable:
Adoption Timing
Q1
487
Q2
487
Q3
487
Independent Variable:
AUDITOR
487
The results test of statistic descriptive can be seen in Table 2, from a sample of 487
companies listed in the Indonesia Stock Exchange, showed only 72 companies, or about
14.8% of the total sample were already applying PSAK 24 (2013). The companies are already
implementing PSAK 24 (2013) since January 1, 2015. the application was accompanied by a
calculation of the impact of adoption of PSAK 24 (2013) in the statement of changes in equity
other comprehensive income is part of the income statement, and notes to the financial
statements. These companies are among others Astra Agro Lestari Tbk, Adhi Karya (Persero)
Tbk, Bank Central Asia Tbk, Bumi Serpong Damai Tbk and PT Telekomunikasi Indonesia
(Persero) Tbk.
In Q2, the company has applied PSAK 24 (2013) in Q1 also be taken into account
that as many as 72 companies (14.8%), because if it had adopted PSAK 24 (2013) in Q1, then
directly already implementing in Q2. The Company has applied PSAK 24 in Q2 cumulative
115 companies or 23.6% of the total sample. Companies that totally new implement in Q2 as
many as 41 companies. Such companies include Astra International Tbk, Bank Danamon
Indonesia Tbk, Ciputra Development Tbk, Kimia Farma (Persero) Tbk, and Holcim Indonesia
Tbk.
In Q3, the company has applied PSAK 24 (2013) in Q2 was also incorporated into
the calculations as many as 115 companies (23.6%), because if it had adopted PSAK 24
(2013) in Q1 and Q2, then directly've implemented in Q3. The number of companies that have
applied PSAK 24 (2013) in Q3 cumulatively that 194 companies, or 39.8% of the total
sample. Companies that totally new implement in Q3 as many as 80 companies. Companies,
among others Adira Dinamika Multi Finance Tbk, Agung Podomoro Land Tbk, Shoes Bata
Tbk, Bank Mandiri (Persero) Tbk, and Pembangunan Jaya Ancol Tbk.
The next analysis is analysis using regression models. Regression model testing done
by logistic regression, because the dependent variable is a dummy. The test results of logistic
regression models shown in Table 3.
Table 3 Result of Regression Models
Description
Q1
Q2
Q3
B
Sig
B
Sig
B
Sig
CAP
0,458
0,000**
0,452
0,000**
0,372
0,000**
EMPLOYEE
0,051
0,134
0,066
0,035**
0,054
0,083*
DER
-0,010
0,847
-0,030
0,534
-0,022
0,590
ROE
0,008
0,492
0,002
0,826
0,000
0,972
AUDITOR
0,393
0,183
0,060
0,812
0,275
0,202
Observation
Prob>Chi-Square
N R-sq
487
487
487
0
0
0
22,10%
23,00%
20,20%
* Significant on level 10% ; ** Significant on level 5%
From the results of these tests show that the independent variable EMPLOYEE and
CAP have significant effect on the application of PSAK 24 (2013) in Interim Financial
Reports 2015 as the dependent variable. In Q1 CAP variables have significant variables with
the value of each 0,000, the value is smaller than the value of α = 0.05. In Q2 CAP and
EMPLOYEE variables that have a significant influence, with respective values of 0.000 and
0.035. In Q3 CAP variable, with a value of 0.000, while the variable EMPLOYEE becomes
insignificant. Variable DER and ROE are insignificant in every quarter in 2015. This indicates
that a significant factor determining companies applying PSAK 24 (2013) in interim financial
report is a market capitalization (CAP) and the number of employees (EMPLOYEE).
So the first hypothesis that larger capitalization companies tend to be faster in
applying PSAK 24 (2013) in interim financial statements and the second hypothesis the
company with larger number of employees tend to be faster in applying IAS 24 Revised 2013
in the interim financial statements is acceptable. Variable DER, ROE, and AUDITOR no
significant effect on the company's decision to determine the applicability of PSAK 24 (2013)
in interim financial statements, so the hypothesis third, fourth, and fifth is not proven.
In this research, also conducted a sensitivity test. Test sensitivity is done by issuing a
variable CAP. Sensitivity test results are shown in Table 4. The sensitivity of the test results
showed different results with the results of previous regression testing. The regression results
show that the sensitivity test variable EMPLOYEE and AUDITOR be significant. AUDITOR
variable becomes significant, when the variable CAP is issued. Variable AUDITOR and CAP
have a strong relationship, this is evidenced by the correlation test in SPSS, which the Auditor
and the CAP have a strong relationship, but the relationship is strong does not show
symptoms multicolinearity, it has also been proven in testing the regression model, where all
variables we tested did not have any symptoms multikolinearitas. The relationship between
the Auditor and the strong CAP may occur due to CAP and AUDITOR associated with firm
size. Companies that are likely to have large market capitalization and audited by public
accountant "Big 4".
Tabel 4 Hasil Uji Sensitifitas
Description
Q1
Q2
Q3
B
Sig
B
Sig
B
Sig
EMPLOYEE
0,137
0,000**
0,152
0,000**
0,135
0,000**
DER
0,002
0,962
-0,016
0,718
-0,013
0,730
ROE
0,001
0,935
-0,003
0,712
-0,005
0,565
AUDITOR
0,716
0,011**
0,393
0,097*
0,537
0,008**
Observasi
Prob>Chi-Square
N R-sq
487
487
487
0
0
0
13,50%
13,10%
11,7
20,20%
* Significant on level 10%; ** Significant on level 5%
In this research also analyzed the impact of the disclosure of the presentation of PSAK
24 (2013). The impact of adoption of PSAK 24 (2013) include the company must make the
restatement on the financial statements of previous years and the emergence of actuarial gain
or loss in other comprehensive income. Based on the analysis of the companies that already
implemented in Q1, Q2, and Q3 result, At companies that apply PSAK 24 (2013) in Q1 there
were 65 of the 72 companies that restated, while seven companies have not been restated, 7
companies that have not been restated its financial statements recently restated in Q2 and Q3.
Companies that apply PSAK 24 (2013) in Q2, as many as 43 companies have restated their
financial statements, companies that apply PSAK 24 (2013) in Q2 everything has restated its
financial statements. In Q3 as many as 45 companies have been restated, while 34 companies
have not been restated.
The application of PSAK 24 (2013) financial statements also give rise to actuarial
gains or losses in the statement of income and other comprehensive income. Companies that
apply PSAK 24 (2013) are generally split into two its comprehensive income items that are
classified in the income and items not classified in income in accordance with the rules in
PSAK 1 (2013). Revised actuarial gains or losses that arise will be in posts are not classified
in profit and loss. Of the 72 companies that apply PSAK 24 (2013) in Q1, as many as 41
companies halve its comprehensive income, while the rest do not make distributions on its
comprehensive income. In Q2 of 43 new companies to apply PSAK 24 (2013), as many as 37
companies to halve its comprehensive income. Of the 79 new companies to apply PSAK 24
(2013) in Q3, as many as 46 companies already halve its comprehensive income.
5. CONCLUSION
Based on the research results and the analysis conducted, it can be concluded that
there are still many companies that have not applied PSAK 24 (2013) in interim financial
statements, even until the third quarter (Q3) 2015. In Q1 there are 72 companies that have
applied and 415 companies not apply. In Q2 cumulatively there are 115 companies that have
applied, while 372 companies have yet to implement. In Q3 cumulatively There are 194
companies that have applied and 293 companies have not implemented. Despite the increase
of the company applying the PSAK 24 (2013) in an interim financial report in 2013, but the
company did not apply the amount still greater.
Market capitalization and number of employees have significant effect on the
application of PSAK 24 (2013) in the interim financial statements of 2015. The results of the
sensitivity test showed that the auditor has significant influence in the company's
consideration to apply PSAK 24 (2013) in interim financial statements, it is possible that the
influence of auditors offset by the effect of market capitalization in the first logistic
regression, because a strong relationship between the auditor and market capitalization related
to the size of the company. The impact of the adoption of PSAK 24 (2013) company must
restated (restatement) to the financial statements of previous years. The restatement resulted
in a change in particular in liabilities and equity reported by the company. The application of
PSAK 24 (2013) also resulted in the emergence of an actuarial loss or gain in the company's
income statement. Companies that apply that apply PSAK 24 (2013) should be disclosure
presentation correctly, but there are still many companies that do not yet precisely such
disclosures are not restated or not to do the classification of gains / losses are in the income
statement. The application of PSAK 24 (2013) also resulted in a decrease in the value of DER
and ROE.
This research has limitations that this research uses the number of companies listed
on the site Indonesia stock exchange until December 31, 2015, the addition of the company
after the date of December 31, 2015 are not included in the population and the measurement
of the application of PSAK 24 (2013) in the financial statements using the information
presentation in the report financial position, statements of income and other comprehensive
income, statement of changes in equity and notes to the financial statements. Measurement of
the implementation of PSAK 24 (2013) does not pay attention to whether the company uses a
defined benefit plan or a defined benefit, fearing they would extend the time of the study.
This research also provides empirical evidence to regulators, standard setters, and
users of financial statements that many companies listed on the exchange have not applied the
standards should be. Regulators should provide more oversight or, if necessary sanctions for
companies that do not implement the standard as appropriate, for the standard setters are
expected to be in conducting socialization and gather suggestions from companies, for users
of financial statements are expected to be more careful in reading and using the information in
interim financial statements.
REFERENCES
Ankarath,
Nandakumar.
(2012).
Memahami
IFRS:
Standar
Pelaporan
Keuangan
Internasional. Jakarta: PT. Indeks
Armstrong, C.S., M.E. Barth, A.D. Jagolinzer, and E.J. Riedl. (2010) “Market Reaction to the
Adoption IFRS in Europe” The Accounting Review 85.
Atkins, Allen B and Edward A Dyl. (1997). “Transaction Cost and Holding Periods for
Common Stocks.” Journal of Finance, vol. 52 (1).
Bae, G. S. & Lee, J. E. (2013). “Does Audit Firm Size Matter? The Effect of Audit Firm Size
Measured by Audit Firm Revenues, Number of Offices, and Professional Headcounts
on Audit Quality and Audit Fees.” Journal of Accounting Research.
Ball, R. (2006). “International Financial Reporting Standards (IFRS): Pros and Cons for
Investors.” Accounting and Business Research, International Accounting Policy
Forum.
Ball, R., A. Robin, and J. Wu. (2003). “Incentives Versus Standards: Properties of Accounting
Income in Four East Asian Countries.” Journal of Accounting and Economics 36.
Brooks, L., Cheng, C.S.A., Johnston, J. and Reichelt, K.J. (2011). “ When does Audit Quality
start to decline in Firm Audit Tenure? – An international analysis.” Working Paper,
Louisiana State University.
Chen H., Tan, Q., Jiang, Y., & Lin, Z. (2010). “The role of international financial reporting
standards in accounting quality: Evidence from European Union.” Journal of
international Financial Manaement and Accounting 21.
Choi, F., and Meek, G. 2011.International Accounting, 7th edition, New York: Pearson
Education.
Chua, Yi Lin, C. S. Cheong & G. Gould. (2012). “The Impact of Mandatory IFRS Adoption
on Accounting Quality: Evidence from Australia.” Journal of International
Accounting Research, vol. 8 (2).
Costello, Ann, Harriet F. Farney, Aurelle S. Locke. (1994). “Accounting for Postretirement
Benefits: Early Adopters of SFAS 106.” Benefits Quarterly. Fourth Quarter.
Daske, H., L. Hail, C. Leuz, and R.Verdi. (2008). “Mandatory IFRS Reporting around the
World: Early Evidence on the Economic Consequences.” Journal of Accounting
Research 46.
DeAngelo, L. E. (1981). “Auditor Size and Audit Quality.” Journal of Accounting and
Economics 3 (3).
Dhaliwal, D., Wen, H., Li, Y. and Pereira, R. (2013). “Does mandatory IFRS Adoption
Facilitate Financial Market Integration”, Consequences of IFRS Adoption, American
Accounting
Association,
Annual
Meeting
and
Conferences,
ANAHEIM,
CALIFORNIA.
Fasshauer, J., Glaum, M. and Street, D.L. (2008). “Adoption of IAS 19 by Europe’s Premier
Listed
Companies”,
research
report
no.100.
www.accaglobal.com/pubs/general/activities/research/research_archive/rr-100001.pdf, accessed 20 November 2015.
Ghozali, Imam. (2012). Aplikasi Analisis Multivarian dengan program IBM SPSS 20, edisi 6.
Semarang: Badan Penerbit Universitas Diponegoro
Hail, L., C. Leuz, and P. Wysocki. (2009) “Global Accounting Convergence and the potential
Adoption of IFRS by United States: An Analysis of Economic and Policy Factors.”
Independent Research to the U.S. FASB.
Harahap, Siti N. (2010). “Economic Motives of Adoption Timing Decision : The Case of The
Revised of The Indonesian GAAP 24 on Employee Benefits.” Asia Pasific Journal
of Accounting and Finance, Vol 1 (1) : 103 – 113.
Hasibuan, Melayu S.P. (2002). Manajemen Sumber Daya Manusia. Jakarta: Bumi Aksara
IFRS, Official Website, November 23, 2015 http://www.ifrs.org/
Ikatan Akuntan Indonesia, Official Website, November 23, 2015 http://www.iaiglobal.or.id/
Indonesia Stock Exchange, Official Website, January 3, 2016 http://www.idx.co.id/
International Accounting Standard No. 19 Employee Benefits (Revised 2011).
Kieso, D.E., Weygandt, J. J., & Warield, T.D. (2015). Intermediate Accounting IFRS Edition.
New Jersey : John Wiley & Sons Ltd.
Martani, Dwi. (2012). Dampak Implementasi IFRS Bagi Perusahaan. Depok : Jurnal
Akuntansi www.academia.edu
Martani, Dwi. (2015). PSAK 24 Imbalan Kerja – IAS 19 Employee Benefit. Depok : Jurnal
Akuntansi www.academia.edu
Neag, Ramona. (2014). The effects of IFRS on net income and equity: evidence from
Romanian listed companies. Procedia Economics and Finance, 15, 1787-1790.
Palea, Vera. (2013). :IAS/IFRS and financial reporting quality: Lessons from the European
experience.” China Journal of Accounting Research, 6, 247-263.
Pangabean, R. R. (2007). “Studi Banding PSAK dengan IFRS Menghadapi Penerapan IFRS
Secara Menyeluruh di Indonesia.” Tesis Pascasarjana Universitas Indonesia,
Jakarta.
Pernyataan Standar Akuntansi Keuangan No. 24 Imbalan Kerja (Revisi 2013).
Pernyataan Standar Akuntansi Keuangan No. 3 Laporan Keuangan Interim (Revisi 2010).
Ross, Stephen A., Westerfield, Randolph W. and Jordan, Bradford D. (1991). Corporate
Financial Fundamental, 7th edition. New York: McGraw-Hill Education International
Edition copyright 2006.
Sami, Heibatollah, Mary Jeanne Welsh. (1992). “Characteristics of Early and Late Adopters of
Pension Accounting Standards SFAS No.87.” Contemporary Accounting Research.
Scoot, T. (1991). In Langer and Lev, “Pension Disclosures under SFAS No.87: Theory and
Evidence.” Contemporary Accounting Research 8 (Fall), 1993.
Trombley, Mark A. (1989). “Accounting Method Choice in the Software Industry:
Characteristics of Firms Electing Early Adoption of SFAS No.86.” The Accounting
Review. LXIV, No.3.
Undang-undang Nomor 13 Tahun 2003 Tentang Ketenagakerjaan.
Wardhani, Ratna. (2009). “Pengaruh Proteksi Bagi Investor, Konvergensi Standar Akuntansi,
Implementasi Corporate Governance dan Kualitas Audit terhadap Kualitas Laba:
Analisis Lintas Negara di Asia.” Disertasi Program Studi Ilmu Akuntansi
Pascasarjana Fakultas Ekonomi Universitas Indonesia.
Weele, Marjolein L. van der. (2011). “Restatement Announcements: The Effects of Audit
Quality on The Market Reaction.” Master Thesis, Tilburg University.
Zehri, Fatma & Jamel Chouaibi. (2013). “Adoption determinants of the International
Accounting Standards IAS/IFRS by the developing countries.” Journal of Economics,
Finance and Administrative Science, 18.