3. Regulasi Akuntansi
o Pernyataan Standar Akuntansi Keuangan termasuk
Akuntansi Syariah
o IFRS dan standar lain untuk item yang tidak diatur
dalam PSAK
o PSAK berbasis IFRS sehingga berkembang dinamis
mengikuti perkembangan IFRS
o Ketentuan yang dikeluarkan oleh OJK (ketentuan
lama Bapepam)
4. Environmental Factors
Dewan Standar Akuntansi Keuangan
Generally Accepted Accounting Principles
Provide input to
Help set
Otoritas Jasa
Keuangan
( OJK )
IAPI
Investors
Accountants
Politicians
Lenders
Others
IAI
6. Laporan Keuangan Relevan dan Dapat Diandalkan
Kompeten
Kerangka
Konseptual
Independen
Standar
Akuntansi
Berkualitas
Laporan
Keuangan yang
Relevan dan
dapat
Diandalkan
Kualitas
Audit
• Pasar Modal yang
efisien
• Keputusan yang
tepat
Informasi yang
berkualitas
Dampak informasi
assimetri
1.Adverse selection
2.Moral hazard
Standar Audit
Manajemen
Corporate
Governance
7. Laporan Manajemen
• Pernyataan oleh manajemen kepada investor :
– Manajemen bertanggung jawab atas proses penyiapan
dan isi laporan keuangan
– Penyusunan laporan keuangan sesuai dengan standar
akuntansi yang berlaku umum
– Perusahaan mengelola sistem pengendalian internal
untuk menjaga pencatatan akuntansi yang akurat dan
asset yang dimiliki perusahaan.
8. Manajemen
Penanggung jawab keakuratan dan kewajaran laporan
keuangan
Menerapkan akuntansi yang mencerminkan aktivitas
bisnisnya.
Dalam akuntansi terdapat diskresi manajemen :
Penentuan estimasi
Pemilihan metode akuntansi
Banyak melakukan lobi dalam penyusunan standar
9. Audit
Set by International Accounting
Standards Board
Not currently accepted in U.S.
SEC under pressure to accept I
Bank, BI, Bapepam, perpajakan dan regulator yang lain
meninginkan Laporan Audit.
Auditor : memberikan opini kewajaran laporan keuangan
sesuai dengan standar akuntansi yang berlaku umum
Auditor tidak memberikan opini atas hasil kinerja
perusahaan
Auditor juga harus dipastikan memiliki kualitas dan
independensi yang tinggi. Jika tidak, maka opini yang
dihasilkan dapat bias.
Auditors
10. Opini Audit
Unqualified opinion (fairly presented)
wajar tanpa pengecualian
Qualified (except for) pembatasan opini
atau tidak sesuai standar untuk hal tertentu.
Disclaimer (no opinion) tidak memberikan
opini, jika auditor tidak independen atau
skope pemeriksaan dibatasi dengan sangat
material
Adverse tidak wajar tidak sesuai
dengan standar akuntansi dengan sangat
material
Auditors
11. o Komisaris Independen
o Komite Audit
o mengawasi proses akuntansi
o mengawasi pengendalian internal
o mengawasi peran auditor internal dan eksternal
o Internal Auditor
Corporate Governance
13. Alternative information sources
Voluntary Disclosure
Economic, Industry & Company News
o Impacts current & future financial condition and performance
Information Intermediaries
o Industry devoted to collecting, processing, interpreting &
disseminating company information
o Includes analysts, advisers, debt raters, buy- and
sell-side analysts, and forecasters
o Major determinant of GAAP
Motivation - Legal liability, Expectations Adjustment, Signaling,
Managing expectations
14. Desirable Qualities of Accounting Information
o Relevance - the capacity of information to affect a
decision
o Reliability - For information to be reliable it must be
verifiable, representationally faithful, and neutral.
o Verifiability means the information is confirmable.
o faithfulness means the information reflects reality, and
o neutrality means it is truthful and unbiased.
15. o Historical Cost - fair & objective values from arm’s-length
bargaining
o Accrual Accounting - recognize revenues when earned,
expenses when incurred
o Materiality - threshold when information impacts decision
making
o Conservatism - reporting or disclosing the least optimistic
information about uncertain events and transactions
Important Accounting Principles
16. First level
The "why"—purpose
of accounting
Second level
Bridge between
levels 1 and 3
Third level
The "how"—
implementation
ASSUMPTIONS
1. Economic entity
2. Going concern
3. Monetary unit
4. Periodicity
5. Accrual
PRINCIPLES
1. Measurement
2. Revenue recognition
3. Expense recognition
4. Full disclosure
CONSTRAINTS
1. Cost
OBJECTIVE
Provide information
about the reporting
entity that is useful
to present and potential
equity investors,
lenders, and other
creditors in their
capacity as capital
providers.
ELEMENTS
1. Assets
2. Liabilities
3. Equity
4. Income
5. Expenses
QUALITATIVE
CHARACTERISTICS
1. Fundamental
qualities
2. Enhancing
qualities
Accounting
Conceptual
Framework
18. Relation between Accounting Numbers and Stock Prices
Relevance of Accounting Information
Relevansi informasi akuntansi ditunjukkan dari seberapa besar
informasi dalam laporan keuangan terefleksi dalam harga saham.
19. Limitations of Accounting Information
o Timeliness - periodic disclosure, not real-time basis
o Frequency - quarterly and annually
o Forward Looking - limited prospective
information
20. Accruals-The Cornerstone
o Establish company and invest $700 equity
o Purchase plain T-shirts for $5 each
o Fixed screen cost of $100
o Variable print cost of $0.75 per T-shirt
o Sold 25 T-shirts at $10 each for cash
o Sold 25 T-shirts at $10 each on credit
Illustration - Case Facts
21. Receipts Assets
T-Shirt sales $250 Cash $275
Payments
T-Shirt purchases $500 Equity
Screen purchase 100 Beginning Equity $700
Printing charges 75 Less net cash outflow (425)
Total payments $(675) Total equity $275
Net cash outflow $(425)
Accruals- The Cornerstone
Case Illustration – Cash Accounting
Statement of Cash Flows Balance Sheet (Cash basis)
22. Revenues Assets
T-Shirt sales $500.00 Cash $275.00
T-Shirt inventory 337.50
Expenses Receivables 250.00
T-Shirts costs $250.00 Total assets $862.50
Screen depreciation 50.00
Printing charges 37.50 Equity
Total expenses (337.50) Beginning equity $700.00
Add net income 162.50
Net income $162.50 Total equity $862.50
Accruals-The Cornerstone
Case Illustration – Accrual Accounting
Balance Sheet (Accrual basis)Income Statement
24. Revenue Recognition – recognize revenues when
(1) Earned
(2) Realized or Realizable
Expense Matching – match with corresponding revenues
- Product costs
- Period costs
Foundations of Accrual Accounting
25. Relation between Cash Flows and Accruals
Operating cash flow (OCF)
-/+ Cash investment & divestment in operating assets
= Free cash flow (FCF)
+/- Financing cash flows (including investment &
divestment in financing assets)
= Net cash flow (NCF)
26. Short-Term and Long-Term Accruals
Short-Term Accruals : Yield current assets and current
liabilities (also called working capital
accruals)
Long-Term Accruals : Yield non-current assets and non-
current liabilities (arise mainly from
capitalization)
Note : Analysis research suggests short-term
accruals are more useful in company
valuation
27. Accruals and Cash Flows - Myths
o Myth: Since company value depends on future cash flows,
only current cash flows are relevant for valuation.
o Myth: All cash flows are value relevant.
o Myth: All accrual accounting adjustments are value irrelevant.
o Myth: Cash flows cannot be manipulated.
o Myth: All income is manipulated.
o Myth: It is impossible to consistently manage income upward
in the long run.
28. Accruals and Cash Flows - Truths
o Truth: Accrual accounting (income) is more relevant than
cash flow.
o Truth: Cash flows are more reliable than accruals.
o Truth: Accrual accounting numbers are subject to accounting
distortions.
o Truth: Company value can be determined by using accrual
accounting numbers.
29. Economic concepts of income
Economic income
Permanent income
Operating income
Economic income
o Measures changes in Shareholders wealth.
o Cash flows + Present value of expected future cash flows.
o Useful when the objective of analysis is determining the exact
return to the shareholder for the period.
o Less useful for forecasting future earnings potential.
30. Accounting concept of income
o Based on the concept of accrual accounting
o Main purpose is income measurement
o Two main processes –
o Revenue recognition
o Expense matching
31. Accounting Vs Economic income
Reasons for difference
o Alternative income concepts
o Historical cost
o Transaction basis
o Conservatism
o Earnings management
32. Fair value accounting
Asset and liability values are determined on the
basis of their fair values (typically market prices)
on the measurement date (i.e., approximately the
date of the financial statements).
34. Advantages & Disadvantages Fair Value
Advantages
o Reflects current information.
o Consistent measurement criteria.
o Comparability
o No conservative bias
o More useful for equity analysis
Disadvantages
o Lower objectivity
o Susceptibility to manipulation. Use of Level 3 inputs.
o Lack of conservatism.
o Excessive income volatility.
35. Implications for Analysis
o Focus on the balance sheet.
o Restating income.
o Analyzing use of inputs.
o Analyzing financial liabilities.
36. 36
Menilai Kualitas Laba
Kinerja operasional dinyatakan terlalu
tinggi?
Potensi melakukan earning
management
Adanya cadangan yang tersembunyi
Pendanaan dengan Off-balance Sheet
Kualitas Laba dan keterbatasan laporan
keuangan
37. Analisis Akuntansi - Accounting Analysis
Analisis akuntansi perlu dilakukan sebelum melakukan
analisis rasio karena :
Terdapat distorsi sehingga penyesuaian dilakukan
agar laporan keuangan mencerminkan keadaan
ekonomi yang sebenarnya.
Disesuaikan dengan tujuan khusus analisis laporan
keuangan.
Laporan keuangan disusun untuk tujuan
umum, sehingga jika ada tujuan khusus
dalam melakukan analisis maka perlu
dilakukan penyesuaian
38. Sumber Distorsi Akuntansi
Accounting Standards
Proses penyusunan standar dipengaruhi oleh unsur polik (tarik
menarik kepentingan)
Asumsi dalam prinsip akuntansi
Konservatism
Estimation Errors – estimasi harus dilakukan dalam akuntansi
berbasir akrual, padahal estimasi sangat subyektif
Reliability vs Relevance – penekanan pada satu aspek dapat
mengorbankan aspek yang lain.
Earnings Management – window dressing laporan keuangan untuk
tujuan khusus perusahaan atau manajemen.
39. Window Dressing
Window Dressing adalah praktik untuk menggunakan celah-
celah akuntansi untuk tujuan tertentu.
Window Dressing sering juga disebut sebagai praktik earning
management.
Tujuan Window Dressing dapat dibedakan menjadi dua yaitu:
Efisiensi
Opportunistik
40. Analysis Objectives
o Comparatives Analysis – demand for financial comparisons
across companies and/or across
time
o Income Measurement - demand for : (1) equity wealth
changes and (2) measure of
earning power. These correspond
to two alternative income concepts
(1) Economic Income (or
empirically, economic profit)
(2) Permanent Income (or
empirically, sustainable profit)
41. Economic Information Content
• Many measurements require subjective
estimates
• GAAP allows management to choose among
accounting policies for many items of financial
reporting
• Hence, informative disclosures are most
important
42. Evaluating Accounting Quality
Have to consider:
Economic faithfulness of measurements
Reliability of measurements
How well GAAP selections “fit” firm’s activities
Reasonableness of estimates
Quality and adequacy of disclosures
43. Quality of Earnings
Does an income statement item signal
1. an unexpected change in earnings for current
period?
2. a change in expected earnings for future
periods?
3. both?
44. Quality of Earnings
Other Comprehensive Income
• Persistent?
• Predictive?
• Examples include:
– Marketable Equity Securities
– Derivatives held as cash flow hedges
– Minimum pension obligations
– Investments in certain foreign operations
Impairment Losses
• Included in income from continuing
operations
• Firms not required to test every asset
every reporting period
• ARE required to test goodwill and other
intangibles with unlimited lives every
year
• May be separate line item, or disclosed
in notes
• Usually no cash flow effect
Restatement FS
• Firm must restate all years presented if It
decides in current year to discontinue
operations of a segment
• Can lead to comparability and ratio
computation problems!
Gain/Loss on other activities
• Included in income from continuing
operations
• Not sustainable
• So should be removed from earnings
Changes in Estimantes
• Financial statements entail many estimates
• Changes in estimates are not unusual
• Accounted for prospectively (in current and
future periods)
• Analyst should examine carefully, though
45. Earning Management
• Istilah umum (common label) yang sering digunakan oleh para
praktisi dan kalangan bisnis mengenai earnings management
antara lain creative accounting practices, income smoothing,
income manipulation, agresive accounting, financial numbers
game dan masih banyak istilah lainnya yang dapat digunakan
secara bergantian.
• Financial shenanigans, yaitu earnings management yang
kadarnya mulai dari tingkatan sopan dan tidak berbahaya
(benign) sampai dengan tingkatan kotor (penipuan) dan
membahayakan publik atau lebih dikenal dengan istilah
fraudulent financial statement (Howart Schilit, 2002).
46. Definisi
Menurut Scott (2000): Earnings management is the choice by a manager
of accounting policies so as to achieve some specific objectives. Karena
manajemen dapat memilih kebijakan akuntansi dari berbagai pilihan
kebijakan maka wajar jika manajemen akan memilih kebijakan akuntansi
untuk memaksimalkan utility-nya dan/atau untuk memaksimalkan nilai
perusahaan (value of the firm).
Menurut SEC dalam annual report reportnya tahun 1999, mengatakan :
During 1999 we focused on financial reporting problem attributable to
abusive earnings management by public companies. Abusive earnings
mangement involves the use of various forms of gimmickry to distort a
company’s true financial performance in order to achieve a desired result
(Washington DC, SEC, 1999 dalam C Mulford and E Commiskey, 2002).
Menurut C Mulford and E Commiskey (2002) : Earnings management is
the active manipulation of accounting results for the purpose of creating
an altered impression of business performance
47. Tujuan
• Tujuan dilakukannya earnings management adalah untuk memberikan
fleksibilitas kepada manajemen perusahaan untuk melindungi diri dan
perusahaannya dalam menghadapi keadaan yang tidak diinginkan
seperti kerugian bagi pihak-pihak yang terlibat dalam kontrak dengan
perusahaan (Jensen dan Meckling dalam tahun 1976 mengeluarkan
agency theory dan contracting theory yang menyebutkan bahwa
perusahaan adalah kumpulan kontrak atau nexus of contract, sehingga
manajemen cenderung melakukan tindakan yang menguntungkan
kepentingannya)
48. Motivasi
• Bonus scheme motivations ( bonus hypothesis)
• Debt covenant hypothesis
• Political atau size hypothesis
• Perpajakan (Taxation)
• Pergantian Management (CEO)
• Initial Public Offering (IPO)
• Regulatory motivations
Terbukti bahwa earning management dilakukan karena adanya
Motivasi Opportunistic dibandingkan motivasi efisiensi
49. 1. Share-price effects
Higher share prices
Reduced share-price volatility
Increased corporate valuation
Lower cost of equity capital
Increase value of stock options
Motivasi
50. 1. Borrowing cost effects
Improved credit rating
Lower borrowing costs
Less stringent financial covenants
2. Bonus plan effects
Increased profit-based bonuses
3. Political cost effects
Decreased regulations
Avoidance of higher taxes
Motivasi
51. Earning Management strategies:
o Increasing Income – managers adjust accruals to increase
reported income
o Big Bath – managers record huge write-offs in one period to
relieve other periods of expenses
o Income Smoothing – managers decrease or increase reported
income to reduce its volatility
Earnings Management – Frequent Source of Distortion
52. o Contracting Incentives - managers adjust numbers used in
contracts that affect their wealth (e.g., compensation contracts)
o Stock Prices – managers adjust numbers to influence stock
prices for personal benefits (e.g., mergers, option or stock
offering)
o Other Reasons - managers adjust numbers to impact
1) labor demands,
2) management changes, and
3) societal views
Earnings Management – Motivations
53. o Incoming Shifting:
Accelerate or delay recognition of revenues or expenses
to shift income from one period to another
o Classificatory Earnings Management:
Selectively classify revenues Earnings and expenses in
certain parts Management of the income statement to
affect analysis inferences regarding the recurring nature
of these items
Earnings Management – Mechanics
54. POLA DAN TEKNIK EARNINGS MANAGEMENT
Pola earnings management
Taking a bath atau big bath
Income minimization
Income smoothing
Cookie jar reserve
Abuse materiality
Revenue recognition
Teknik earnings management
Menurut Center for Financial Research & Analysis (CFRA)
terdapat 30 teknik earning managements (shenanigans) yang
selanjutnya terbagi tujuh kategori
MOORESTEPHENS
55. Shenanigan No. 1 :
Recording Revenue Too Soon or of Questionable Quality
Recording revenue when future services remain to be
provided
Recording revenue before shipment or before the
customer’s unconditional acceptance
Recording revenue even though the customer is not
obligated to pay
Selling to an affiliated party
Giving the customer something of value as a quid pro
quo Grossing up revenue
Financial Shenanigan
56. Shenanigan No. 2 :
Recording Bogus Revenue
Recording sales that lack economic substance
Recording cash received in lending transactions as revenue
Recording investment income as revenue
Recording as revenue supplier rebates tied to future re-
quired purchases
Releasing revenue that was improperly held back before a
merger
Financial Shenanigan
57. Shenanigan No. 3 :
Boosting Income with One-Time Gains
Boosting profits by selling undervalued assets
Including investment income or gains as part of revenue
Reporting investment income or gains as a reduction in operating
expenses
Creating income by reclassification of balance sheet accounts
Financial Shenanigan
58. Shenanigan No. 4 :
Shifting Current Expenses to a Later or Earlier Period Boosting
profits by selling undervalued assets
Capitalizing normal operating costs, particularly if recently
changed from expensing
Changing accounting policies and shifting current expenses
to an earlier period
Amortizing costs too slowly
Failing to write down or write off impaired assets
Reducing asset reserves
Financial Shenanigan
59. Shenanigan No. 5 :
Failing to Record or improperly Reducing Liabilities
• Failing to record expenses and related liabilities when
future obligations remain
• Reducing liabilities by changing accounting assumptions
• Releasing questionable reserves into income
• Creating sham rebates
• Recording revenue when cash is received, even though
future obligations remain
Financial Shenanigan
60. Shenanigan No. 6 :
Shifting Current Revenue to a Later Period
• Creating reserves and releasing them into income in a later
period
• Improperly holding back revenue just before an acquisition
closes
Shenanigan No. 7 :
Shifting Future Expenses to the. Current Period as a Special Charge
• Improperly inflating amount included in a special charge
• Improperly writing off in-process R&D costs from an acquisition
Financial Shenanigan
61. Fenomena Dasar Earning Management
• Dari ketiga puluh teknik earnings management (shenanigans)
tersebut diatas pada dasarnya dapat juga dikategorikan
menjadi lima fenomena dasar (C Mulford and E Commiskey,
2002), yaitu
– Recognizing Premature or Fictitious Revenue
– Aggressive Capitalization and Extended Amortization Policies
– Misreported Assets and Liabilities
– Getting Creative with the Income Statement : Classification and
Disclosure
– Problem with Cash-flow Reporting
62. Penelitian Earning Management
– Penelitian akuntansi juga menunjukan bahwa earnings
management biasanya dilakukan pada kuartal 4 (Q 4)
dalam periode pelaporan (reporting period) dan biasanya
dilakukan bersamaan dengan restrukturisasi perusahaan.
– Para analis harus lebih peka dan hati-hati dengan beberapa
istilah dalam bisnis yang terkait dengan huruf “R” seperti
Retructuring, Realign, Redeploy, Reconfigure, Resize, Right
Size, Rationalize, Reposition, Reingineer dan Reorganize.
63. Techniques for Detecting
• Quantitative Screening
– The steepest decline in cash flow from operation relative to
income
– The greatest year to year sales growth followed by declining or
negative sequential growth.
– The greatest growth in receivables relative to sales
– The largest bulge in inventory relative to sales and to cost of
sales
– The biggest of smallest deterioration in gross margins
– Big increases in soft assets
– Big increases in deferred revenue
64. Techniques for Detecting
• Qualitative Screening
– Change in accounting estimates or principles
– Offering customers financing or extended credit term
– Changes accounting policies or classification
– Change in auditor
– Extended payment terms and More liberal credit term
– Percentage of completion
– Unbilled receivables
– Bill and hold
– Insider stock sales
– Decline in backlog
– Non-monetary and related party transaction
65. Accounting analysis involves several inter-related processes
and tasks that can be grouped into two broad areas:
o Evaluating Earning Quality: Steps
1) Identify and assess key accounting policies
2) Evaluate extent of accounting flexibility
3) Determine the reporting strategy
4) Identify and assess red flags
o Adjusting Financial Statements:
Identify, measure, and make necessary adjustments to
financial statements to better serve one’s analysis
objectives.
Process of Accounting Analysis
