ANALYSIS OF THE IMPACT OF IMPLEMENTATION OF PSAK 72 ON COMPANY VALUE WITH PROFITABILITY MEDIATORS
Cici Wijayanti

University of Jember

Abstract

Competition between companies in the era of globalization is increasing so that companies are competing to increase the value of the company and provide the welfare of shareholders. The purpose of the company for the short term is to maximize profit, which the company can measure with the profitability ratio. In September 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) signed the Norwalk Agreement, which stated that they would eliminate the differences between US GAAP and IFRS and establish a set of high quality accounting standards. After one month, the FASB and IASB issued a Memorandum of Understanding (MOU) including a joint project on revenue recognition. In May 2014 the FASB and IASB finally issued Revenue From Contracts with Customers (IFRS 15) by changing several standards regarding revenue recognition under US GAAP and IFRS (Khamis 2016). PSAK 72 amends several PSAK and ISAK including PSAK 23 regarding Revenue- PSAK 34 concerning Construction Contracts- ISAK 10 concerning Customer Loyalty Program- ISAK 21 concerning Real Estate Construction Agreements- ISAK 27 concerning Transfer of Customer Assets- and PSAK 44 concerning Accounting for Real Estate Development Activities ((IAI) 2017). Khamis (2016) states that in general accountants and auditors in Egypt are still not ready to adopt and have insufficient knowledge of IFRS 15 and are even afraid that the new revenue recognition requirements will increase wisdom and professional judgment in revenue recognition and its impact on different sectors. This type of research is quantitative research. The population taken is the electricity company on the BEI. Furthermore, the research sample was taken from the population using the purposive sampling method.

Keywords: IFRS 15, PSAK 72, profitability

Topic: Accounting