Manajemen Laba Pt. Indofarma

Accounting is the methodical and full recording of financial transactions relating to a business, and it also denotes to the procedure of briefing, examining and evaluating these transactions to cross checking agencies and tax collection agencies. Accounting is one of the key purposes for nearly any company. It may be done by an auditor and accountant at small businesses or by substantial finance subdivisions with lots of employee’s at

This research paper will detail the modified accrual revenue recognition in State and Local Government (SLG) accounting. There will also be discussions on the guidance of governmental fund expenditure recognition, and how it is used in state and local governments. Certainly, there are differences between the fund and the government-wide financial statements, but there are some similarities. Within the paper, it will include the purpose as well as the content of the financial statements. While explaining the government-wide financial statements, the preparation using derived information in the conversion worksheets, will be presented. Lastly, in this research paper, I will explain the elements of a Comprehensive Annual Financial Report (CAFR).

There are three kind of financial statements for companies which the content reflected different information. Among them, the first is the balance sheet, this statement reflects the financial situation of enterprises. For example, some of the listed companies wants to reflect good financial position in the statement, they will want to increase total assets, decrease accrued total liabilities, and then of course increase owners ' equity, making investors mistakenly believe the company has great investment value, thereby misleading public opinion and investors. Beside the balance sheet the other two financial statements are the income statement and cash flow statement. These two statements reflect the business situation of enterprises. The income statement is an important indicator to measure the performance of listed companies, it is closely related to the allotment and the profit. Therefore, in order to increase the profits of listed companies, they will have to Increase revenue, earnings, decrease expenses, costs and losses (Temte, 73). It helped increase tax evasion, embezzlement and other economic criminal activities. A large number of cases being investigated, all related to the accountants making the fake accounting entries. Therefore, the accounting credibility loss has restricted the development of the market economy. In a business, accountant often times handle the tax problem, so if

Information based on accrual accounting has historically and empirically provided a better indication of a company’s ability to generate cash flows than information gathered under the cash method. If there is not inter-period allocation, then the information is not as meaningful and will result in a mismatching of economic benefits

This case study is the first of a two-part Earnings Management Case. The purpose of Part

prevent decrease in stock value, higher borrowing cost, evade corporate bankruptcy and non-financial motives are believed to be more powerful (p.286). Stallworth and Degregorio (2004) identified that most companies managed earnings for several reason, however the most common motivations is the pressure to meet the market and analyst expectations by prematurely or fictitiously recognizing revenue (p.55). Stallworth and Degregorio suggests that the internal auditor should be cautious of the indications to perform abusive earning management or motivation to commit fraud, such as personal benefits like prestige, extra compensation, bonuses, employee stock option and increased stock value as a reward when earning expectations are met or exceeded, while negative outcomes provide the same level of motivation like reputational damage or embarrassment, loss of employment, demotion or lowered compensation (p.56).

Audit opinions and fraudu- 21, 22 lent reporting. Earnings forecasts. Interpretation of ratios. 15, 16 23, 24, 25, 29 8 8 4, 5, 6 4, 5, 6 4, 5, 6 4, 5, 6 4, 5, 6 26, 27 8, 9, 10 4, 5, 6 4, 5, 6 25, 28 1 1 1 1 1 1 3, 5 3, 4 11 12 14

Tremendous pressure is placed upon accountants and executives to provide favorable financial conditions of their organization (Sherman & Young, 2001). As such, accounting practices are continually a source of question and concern for many organizations in reporting profits and corporate financial information to shareholders, stock markets, and government filings. Hence, the role of the ethical accountant and executives becomes crucial to the continued success and operation of the organization. Consequently, pitfalls or minefields of questionable accounting practices must be avoided.

Abstract. The article reviewed was Ethically Related Judgments by Observers of Earnings Management. The abstract emphasizes that the earning management is the major ethical issues in accounting. Regulators and investors examine professional judgment through legal books (p. 285).

There has been a significant debate focusing on costs and benefits of adopting accrual basis of accounting over cash basis of accounting. This paper illustrates the concepts of accrual basis of accounting, highlights the benefits of accrual basis of accounting posed by its advocates and also briefly discusses the disadvantages of adopting accrual basis accounting. The paper also briefly discusses the recent accounting scandal of Tesco Plc. which showed that profits of the company were overestimated by approximately 250 million and resulted in suspension of eight employees as well as an initiation of investigation by Serious Fraud Office (SFO) UK. The paper finally concludes that the substantial risks and costs associated with accrual basis are yet to be justified to encourage its adoption.

There are several acceptable ways of earning management which managers can use in smoothing their accounts though such can be very complex and confusing. However, the major aim of earning management is to facilitate the organization to achieve a pre-set target, which is more often than not the analysts ' consensus. The most successful and widely acceptable earning management techniques assume twelve categories. However, both are bound some common underlying concepts, GAAP requirements, the actual company cases that outline its accounting applications as well as the real numerical illustrations of the company. However, some of the most common earnings management techniques include cookie jar reserve techniques. This is a normal concept of GAAP anchored accrual accounting under which the company management must estimate as well as record all the obligations which have to be paid in future due to events or transactions in Each financial year. However, under this concept, since the future events may not be known for sure, during the time of estimation, the method provides a substantial uncertainty over the estimation process. This leads to a situation of a

With such incentives, it is naturally expected that directors manage earnings to meet analysts’ expectations. Directors have a range of methods that they can adopt, which makes the identification and measurement of earnings management more complicated. This essay splits the methods and reviews literature that has used different models to study earnings management.

Charles T., H., Walter T., H. and M. Suzanna, O. (2012). Accounting: Global Edition. 9th ed. United States of America: Pearson Education Limited, pp.27-39.

3) To evaluate the impact of Earnings Management on the decision making of external users of Financial Statement.

Lebih separuh populasi Sarawak dan 66% populasi Sabah terdiri daripada kaum bumiputera bukan Melayu. Mereka terbahagi kepada berpuluh-puluh kumpulan etnik tetapi memiliki budaya umum yang sama. Sehingga abad ke-20, kebanyakan daripada mereka mengamalkan kepercayaan tradisional tetapi kini telah ramai yang sudah bertukar kepada agama Kristian atau memeluk Islam. Selain itu, Malaysia juga mempunyai penduduk yang berasal daripada Eropah yang dikenali sebagai