Firm characteristics and Biological Asset Disclosure on Agricultural Firms

Carolina, Anita; Kusumawati, Fariyana; Chamalinda, Khy'sh Nusri Leapatra

doi:10.9744/jak.22.2.59-71

Cited by 9 publications

(35 citation statements)

References 70 publications

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“…This shows that enterprises in the sector may not depend on profit gains created in the course of their operation to successfully and efficiently manage the business. The findings are also compatible with the findings of Carolina, Kusumawati and Chamalinda (2020). ( 2020).…”

Section: Discussion Of Findingssupporting

confidence: 92%

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Evaluation of Financial Determinants of Biological Assets of Agricultural Companies in Nigeria

Nnajieze

2022

ijafr

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This study examined the financial determinants of biological assets of agricultural companies in Nigeria. The specific objectives were to examine the effect of leverage, profitability, and firms size on the biological assets of quoted Agricultural firms in Nigeria. The study adopted ex-post facto research design and made use of secondary data collected from annual reports and accounts of the sampled agricultural firms for a period of ten (10) years (2011-2020). Ordinary Least Squares (fixed effect model) were applied to evaluate the determinants (leverage, profitability, & firm size) of biological assets of quoted agricultural firms in Nigeria. The result of the analysis showed that leverage has a significant effect on the biological assets of quoted agricultural firms in Nigeria. The other variables which include profitability measured by return on assets and firm size have an insignificant effect on biological assets. The implication is that only leverage can cause a significant increase or decrease in the biological assets of agricultural firms in Nigeria. The study conclude that leverage is the only financial determinant that have significant effect on biological assets of agricultural firms in Nigeria.

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Section: Discussion Of Findingssupporting

confidence: 92%

“…According to the study's conclusions, agricultural firms in Nigeria must minimize the rate at which they utilize leverage to finance their activities. The findings do not match those of Carolina, Kusumawati, and Chamalinda (2020). ( 2020).…”

Section: Discussion Of Findingscontrasting

confidence: 70%

Evaluation of Financial Determinants of Biological Assets of Agricultural Companies in Nigeria

Nnajieze

2022

ijafr

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“…Below are the variables used in the research provided in table 1. Determined by comparing the company's biological assets with the company's total assets (Carolina et al, 2020).…”

Section: Methodsmentioning

confidence: 99%

“…Agency theory claims that disclosure can be considered as a procedure to control the performance of managers, meaning that disclosure is the right method to monitor the performance of agents and the credibility of the company can be increased in the eyes of shareholders (Mirović et al, 2019). The intensity of biological assets is defined as the proportion of investment which can show the amount of money the entity invests in its biological assets (Alfiani & Rahmawati, 2019;Carolina et al, 2020) Total assets that have changed, either increasing or decreasing also reflect the company's growth (Brigham & Houston, 2014;Cindy & Madya, 2018). Auditing can bridge the presentation of the company's financial statements where conflicts of concern often occur.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This result is in line with agency theory. Agricultural companies place biological assets as the main assets so the size of biological assets in financial statements has an impact on company owners in making decisions according to agency theory (Carolina et al, 2020). With the increasing value of biological assets, there is a tendency for companies to disclose more information about biological assets to convey more transparent information, so company owners know the condition of their biological assets, so that owners can evaluate the company's potential and determine business strategies that must be improved in the future.…”

Section: Effect Of Biological Asset Intensity On Biological Asset Dis...mentioning

confidence: 99%

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Biological Asset Disclosure in Indonesia

Aminah

Suhardjanto

Rahmawati

et al. 2022

ijtc

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The development of companies in the agricultural sector is supported by the availability of information, which is also a consideration for decision-making by company owners or company management. As a result, the company's annual report must include as much information as possible. Agricultural companies are required to disclose their biological assets under PSAK 69. However, many agricultural companies have not fully disclosed their biological assets. The focus of the research is to observe how biological assets, company growth, auditor type, and public ownership influence biological assets disclosure. Plantation & crops companies listed on the Indonesia Stock Exchange (IDX) are the population for this study, with a total of 25 entities. 13 out of 25 companies became the research sample taken using a purposive sampling method. The research technique uses panel data regression in Eviews 10. The findings of this study are biological assets intensity and auditor type have a significant positive impact on biological assets disclosure. Company growth has an insignificant positive effect on the disclosure of biological assets, public ownership has an insignificant negative effect on the disclosure of biological assets.

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Factors influencing biological asset disclosures in agricultural companies in Indonesia

Ika

Susetyo

Pribadi

et al. 2022

IOP Conf. Ser.: Earth Environ. Sci.

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This study examines to what extent biological asset reporting is corresponding to the Indonesian Statement of Financial Accounting Standard 69 (PSAK 69) among Indonesia Stock Exchange-listed agricultural firms. In their annual report, such companies should report how they recognize and measure the fair value of the living plants or animals’ assets. This study also examines factors that might impact the extent of disclosure of biological assets. The examined factors are biological asset intensity, concentrated ownership, audit committee effectiveness, profitability, and size. Biological asset disclosures were measured by a checklist derived from PSAK 69 and International Accounting Standard (IAS) 41 on Agriculture. This study uses 53 firm-year observations of the listed agriculture companies from 2017 to 2020. Multiple regression analysis findings indicate that biological asset intensity and firm size affect favorably the amount of biological asset disclosures. The results indicate that the greater the living plants or animals owned by a company and the larger the firm, the greater the commitment of a company to disclose its biological assets in its annual report. The study sheds light on the capital market authority agency’s current policy to strengthen factors that may impact agricultural companies’ disclosure of their biological assets.

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Firm characteristics and Biological Asset Disclosure on Agricultural Firms

Cited by 9 publications

References 70 publications

Evaluation of Financial Determinants of Biological Assets of Agricultural Companies in Nigeria

Evaluation of Financial Determinants of Biological Assets of Agricultural Companies in Nigeria

Biological Asset Disclosure in Indonesia

Factors influencing biological asset disclosures in agricultural companies in Indonesia

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