Impact of Fair Value Measurement and Disclosure of Biological Assets Based on PSAK 69 on Agricultural Firm Value (2018-2022)

Fidelys Grecia Hutabarat; Retno Yuni Nur Susilowati; Liza Alvia; Widya Rizky Eka Putri

doi:10.62951/ijecm.v1i4.252

Authors

Fidelys Grecia Hutabarat Lampung University
Retno Yuni Nur Susilowati Lampung University
Liza Alvia Lampung University
Widya Rizky Eka Putri Lampung University

DOI:

https://doi.org/10.62951/ijecm.v1i4.252

Keywords:

fair value, biological assets, biological assets disclosure, PSAK 69, firm value

Abstract

The agricultural sector plays an important role in Indonesia's capital markets, making a significant contribution to the economy despite facing the challenges of the COVID-19 pandemic. The consistent growth of this sector, marked by an increase in contribution to GDP by 2.20% in 2020 and 12.4% in 2022, has attracted investor interest. To support better investment decisions, agricultural companies need to improve the quality of the financial information they present. The implementation of PSAK 69, which requires disclosure of the fair value of biological assets, is an important step in increasing corporate transparency and accountability. This research aims to empirically test the influence of the fair value of biological assets and disclosure of biological assets on firm value in the Indonesian agricultural sector for the 2018-2022 period. The research was conducted using multiple linear regression analysis. The research results show that disclosure of biological assets has a positive effect on increasing firm value, while the fair value of biological assets does not have a significant effect.

Downloads

Download data is not yet available.

References

Alexeyeva, I., & Mejia-Likosova, M. (2016). The Impact of Fair Value Measurement on Audit Fees: Evidence from Financial Institutions in 24 European Countries. International Journal of Auditing, 20(3), 255–266. https://doi.org/10.1111/ijau.12075

Alfarisyi, N., Diantimala, Y., Yahya, R., & Saleh, M. (2022). Biological Assets and Firm Value: Do Fair Value Measurement and Disclosure Matter? Jurnal Dinamika Akuntansi Dan Bisnis, 9(2), 205–222. https://doi.org/10.24815/jdab.v9i2.24694

Alfiani, L. K., & Rahmawati, E. (2019a). Pengaruh Biological Asset Intensity, Ukuran Perusahaan, Pertumbuhan Perusahaan, Konsentrasi Kepemilikan Manajerial, dan Jenis KAP Terhadap Pengungkpan Aset Biologis(Pada Perusahaan Agrikultur yang Terdaftar di Bursa Efek Indonesia Periode 2014-2017). Reviu Akuntansi Dan Bisnis Indonesia, 3(2), 163–178.

Argilés, J. M., Garcia-Balndon, J., & Monllau, T. (2010). Fair Value Versus Historical Cost-Based Valuation for Biological Assets: Predictibility of Financial Information. Revista de Contabilidad-Spanish Accounting Review, 14(2), 87–113.

Badan Pusat Statistik. (2020). Indikator Pertanian (Agricultural Indicators) 2020 (H. dan P. Direktorat Statistik Tanaman Pangan, Ed.). Badan Pusat Statistik.

Clarkson, P. M., Fang, X., Li, Y., & Richardson, G. (2013). The relevance of environmental disclosures: Are such disclosures incrementally informative? Journal of Accounting and Public Policy, 32(5), 410–431. https://doi.org/10.1016/j.jaccpubpol.2013.06.008

Danbolt, J., & Rees, W. (2008). An experiment in fair value accounting: UK investment vehicles. European Accounting Review, 17(2), 271–303. https://doi.org/10.1080/09638180701819865

djpb.kemenkeu.go.id/kppn/ketapang/id/data-publikasi/artikel/3081-perlakuanakuntansi-aset-biologis-menurut-sap-dan-sak.html

Domo, A., Resky, V., & Utami, W. (2022). The Effect of the Quality of Disclosure and the Fair Value of Biological Assets on Company Value. DIJMS (Dinasti International Journal Od Management Science), 4(2), 279–285. https://doi.org/10.31933/dijms.v4i2

Fadliyansyah, M. E. (2020, September 2). Tertolong Saham-saham Pertanian. IHSG Ditutup di Zona Hijau Naik 0,02%. Katadata.Co.Id.

Godfrey, J., Hodgson, A., Tarca, A., & etc. (2010). Accounting Theory (7th Edition).

Hadiyanto, A., Puspitasari, E., & Ghani, E. K. (2018). The effect of accounting methods on financial reporting quality. International Journal of Law and Management, 60(6), 1401–1411. https://doi.org/10.1108/IJLMA-03-2017-0022

Hayati, K., & Serly, V. (2020). Pengaruh Biological Asset Intensity, Growth, Leverage, Dan Tingkat Internasional Terhadap Pengungkapan Aset Biologis (Studi pada Perusahaan Agrikultur yang Terdaftar di BEI Tahun 2015-2018). Jurnal Eksplorasi Akuntansi, 2(2), 2656–3649. http://jea.ppj.unp.ac.id/index.php/jea/issue/view/22

Herrmann, D., Saudagaran, S. M., & Thomas, W. B. (2006). The quality of fair value measures for property, plant, and equipment. Accounting Forum, 30(1), 43–59. https://doi.org/10.1016/j.accfor.2005.09.001

Hidayat, M. (2018). Analysis Of Accounting Treatment Of Agricultural Activities In The Idx Targeted Plants Sector Companies Approaching The Im-Plementation Of PSAK 69. Measurement, 12(1), 36–44.

Huffman, A. (2018). Asset use and the relevance of fair value measurement: evidence from IAS 41. Review of Accounting Studies, 23(4), 1274–1314. https://doi.org/10.1007/s11142-018-9456-0

Ikatan Akuntan Indonesia. (2020). Agrikultur (PSAK No. 69). Jakarta: Penulis.

Khodijah, A. S., & Utami, E. R. (2021). The Role Of Biological Assets Disclosure In Agricultural Companies: A Study In Indonesia. Advances in Economics, Business, and Management Research, 176.

Luckyardi, S., Agustini, K., & Sari, M. (2021). The Impact Of Dividend Policy And Capital Structure On Firm Value In Agricultural Sector. In Jurnal Ilmu Keuangan dan Perbankan (JIKA (Vol. 11, Issue 1). www.idx.co.id

Marra, A. (2016). The pros and cons of Fair Value Accounting in a globalized economy: A never ending debate. Journal of Accounting, Auditing and Finance, 31(4), 582–591. https://doi.org/10.1177/0148558X16667316

Martanti, R., Lestari, E., Zarkasyi, W., Soepardi, E. M., & Farida, I. (2019). Accounting for Biological Assets: Data from Indonesia and Malaysia. International Journal of Innovation, Creativity and Change. Www.Ijicc.Net, 6(9). www.ijicc.net

Natsir, K., Bangun, N., & Ishlah, R. N. (2023). Firm Value Of The Agricultural Sector In Indonesia And Several Influencing Factors. Jurnal Manajemen, 27(2), 297–321. https://doi.org/10.24912/jm.v27i2.1113

Orens, R., Aerts, W., & Lybaert, N. (2009). Intellectual capital disclosure, cost of finance and firm value. Management Decision, 47(10), 1536–1554. https://doi.org/10.1108/00251740911004673

Owusu-Ansah, S. (1998). The Impact of Corporate Attributes on the Extent of Mandatory Disclosure and Reporting by Listed Companies in Zimbabwe. In The International Journal of Accounting (Vol. 33, Issue 5).

Putri Mas, N. P. A., Putri, I. G. A. M. A. D., Sari, M. M. R., & Wirajaya, I. G. A. (2023). Does firm growth moderate the effect of biological assets intensity on firm value? World Journal of Advanced Research and Reviews, 19(2), 700–709. https://doi.org/10.30574/wjarr.2023.19.2.1632

Rachmawati, Y., Oktriyani, A., & Ermina. (2019). Implementasi Perlakuan Akuntansi Aset Biologis Berbasis PSAK 69 yang Berlaku Efektif 1 Januari 2018 pada Perusahaan Perkebunan (Studi Kasus PT.PP London Sumatera Indonesia,Tbk). Akuntansi Dan Manajemen, 14(2), 130–145.

Rahmawati, D., & Apandi, R. N. N. (2023). Do Biological Assets And Disclosures Under Psak 69 Affect Company Value? Nur Klabat Accounting Review |, 4(1).

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374. http://qje.oxfordjournals.org/

van Biljon, M., & Scott, D. (2019). The importance of biological asset disclosures to the relevant user groups. Agrekon, 58(2), 244–252. https://doi.org/10.1080/03031853.2019.1570285

Wardhani, P. M. (2021). Analisis Perlakuan Akuntansi Aset Biologis pada Industri Perkebunan Berdasarkan PSAK 69 Agrikultur (Vol. 1).

Yurniwati, Y., Djunid, A., & Amelia, F. (2018). Effect of Biological Asset Intensity, Company Size, Ownership Concentration, and Type Firm against Biological Assets. The Indonesian Journal of Accounting Research, 21(1). https://doi.org/10.33312/ijar.338