Kemungkinan Pemilihan Metode Nilai Wajar Bagi Perusahaan Yang Melaporkan Properti Investasi

Abstract

This study aims to examine the factors that affect the likelihood companies choose the method of fair value for investment properties. Factors in this research consisted of debt levels, the size of the company, information asymmetry and companies in the property industry (control variables). The population of this research is company publicly traded listed on the Indonesian Stock Exchange 2010-2015 period. The sample selection using purposive sampling, the type of data used is secondary data obtained from the official website of the Stock Exchange. The hypothesis tested using a binomial logit regression models. The results of this study indicate that the level of debt significantly influence the possibility of the selection method for the fair value of investment property. This suggests that the high or low levels of debt may affect the selection of the fair value method. The size of the company, information asymmetry and companies in the property industry did not significantly affect the possibility of the selection method for the fair value of investment property. This suggests that the high or low of company size, and information asymmetry in the property industry has no impact on the possibility of the selection method for the fair value of investment property

Opportunistic motivation on fair value accounting of investment properties: Does corporate governance matter in Indonesia?

“…The theory used in previous studies is PAT (Chen et al, 2020;Farahmita & Siregar, 2014;Mita & Siregar, 2019;Mulyanti et al, 2020;Setijaningsih et al, 2021;Wahyuni et al, 2019). Watts and Zimmerman (1990) stated that PAT emerged for three reasons: changes in business flow, technological advances, and criticism of normative accounting theory.…”

“…The use of fair value for investment properties is based on assumptions and hypotheses, which are fundamental elements of PAT. These ideas-that capital markets work well, investors are smart, information is a good thing to have, and people act in their own best interests-help us come up with hypotheses about what makes it important to use a fair value for investment properties (Angelo & Nuryani, 2021;Kadri et al, 2020;Mäki, 2020;Mita & Siregar, 2019;Mulyanti et al, 2020;Sasongko & Marhamah, 2014;Watts & Zimmerman, 1990).…”

“…Several early studies (Black, Chen, & Cussatt, 2022;Farahmita & Siregar, 2014;Mita & Siregar, 2019;Mulyanti et al, 2020;Setijaningsih et al, 2021;Wahyuni et al, 2019) used these three hypotheses to figure out how to choose the fair value use on investment properties. For example, Farahmita and Siregar (2014) stated that corporates with higher debt levels are less likely to choose fair value methods to protect against creditors by using more conservative accounting policies, in line with the debt covenant hypotheses in the PAT framework.…”

“…Indonesian financial accounting standards (IFAS) 13, which pertains to investment properties, offer alternatives for measurement using fair value or cost after acquiring such properties (Setijaningsih, Handoyo, & Sundari, 2021;Yennisa, Juwiyato, & Budiarto, 2020). The use of fair value provides relevant information for investment decisionmaking because it reflects the true market value of properties (Mäki, 2020;Mulyanti, Darmayanti, & Yunilma, 2020;Sasongko & Marhamah, 2014;Yennisa et al, 2020). This approach is often adopted for its efficiency, ability to reduce political costs, and safeguarding of creditors through conservative accounting practices (Acaranupong, 2017;Mulyanti et al, 2020).…”

“…The use of fair value provides relevant information for investment decisionmaking because it reflects the true market value of properties (Mäki, 2020;Mulyanti, Darmayanti, & Yunilma, 2020;Sasongko & Marhamah, 2014;Yennisa et al, 2020). This approach is often adopted for its efficiency, ability to reduce political costs, and safeguarding of creditors through conservative accounting practices (Acaranupong, 2017;Mulyanti et al, 2020). Corporates that opt for fair value measurement are typically characterized by dispersed…”