Equity Analysis of Local Government: A Case Study of Deli Serdang Regency, North Sumatra Province, Based on Government Financial Reports and IFRS Principles
DOI:
https://doi.org/10.62951/ijecm.v2i4.986Keywords:
Equity Analysis, Fiscal Sustainability, IFRS, Local Government Finance, Public Sector AccountingAbstract
This study provides a detailed equity analysis of the Deli Serdang Regency local government by evaluating its financial statements from 2020 to 2023 and interpreting results through the lens of International Financial Reporting Standards (IFRS) and public sector accounting principles. The analysis examines trends in assets, liabilities, and equity, computes key financial ratios, and discusses implications for fiscal sustainability, transparency, and governance. The study combines quantitative ratio and trend analyses with a qualitative review of notes to the financial statements and a reconciliation exercise mapping local government reporting (SAP/APBD disclosures) to IFRS/IPSAS concepts. Findings (illustrative data) show a positive but modest growth in equity, persistent dependence on intergovernmental transfers, and opportunities to improve asset valuation and liability recognition practices. The paper concludes with practical recommendations for policy-makers and local finance managers and suggests a road map for incremental IFRS-aligned reporting in the local government context.
Downloads
References
Alessa, N. (2024). Exploring the effect of International Public Sector Accounting Standards adoption on national resource allocation efficiency in developing countries. Public and Municipal Finance, 13(1), 1–13. https://doi.org/10.21511/pmf.13(1).2024.01
Al-Kharabsheh, F. I. (2021). The effect of adopting International Public Sector Accounting Standards (IPSAS) on financial performance in the Jordanian public sector. Academy of Accounting and Financial Studies Journal, 25(2), 1–12.
Anam, K. (2023). Implementasi penerapan konvergensi IFRS di Indonesia. Jurnal Ekonomika, 14(2), 115–128.*
Anggraeni, R. N. (2023). An impact analysis of IFRS adoption on financial reporting quality: Enhancing transparency and corporate governance. International Journal of Accounting and Finance, 1(3). https://doi.org/10.61194/ijat.v1i3.475
Caperchione, E., & Emilia, R. (2016). The challenge of harmonization. In Public Sector Accounting Standards (pp. 1–15). Springer.
Diptyana, P. (2019). Pengaruh faktor keuangan pemerintah daerah terhadap kualitas Internet Financial Reporting. Jurnal Riset Akuntansi dan Keuangan, 7(3), 513–530.
El Rayess, M., Halstead, A., Harris, J., Ralyea, J., & Tieman, A. (2019). Indonesia’s public wealth: A balance sheet approach to fiscal policy analysis. IMF Working Papers, 19(81), 1–38. https://doi.org/10.5089/9781498303798.001
Ferry, L., & Eckersley, P. (2015). Budgeting and governing for deficit reduction in the UK public sector: Act three ‘accountability and audit arrangements.’ Public Money and Management, 35(3), 203–210. https://doi.org/10.1080/09540962.2015.1027496
Inata, L. C., Saraswati, E., & Ghofar, A. (2022). Financial statements disclosure on Indonesian local government: IPSAS and PSAP disclosure approach. Jurnal Reviu Akuntansi dan Keuangan, 12(3), 611–625. https://doi.org/10.22219/jrak.v12i3.20938
Juanda, A., Setyawan, S., & Inata, L. C. (2023). Analysis of local government accounting disclosure based on International Public Sector Accounting Standards (IPSAS). Journal of Accounting and Investment, 24(2), 245–260.
Konvergensi IFRS di Indonesia: Analisis dampak terhadap laporan keuangan pemerintah daerah. (2025). Jurnal TEAR, 9(1), 45–60.*
Laporan Keuangan Deli Serdang. (2022). Laporan Keuangan Pemerintah Daerah Kabupaten Deli Serdang. www.deliserdangkab.go.id
Maayah, E. I., Amin Abu Aqoula, B. M., & Barhoom, F. N. (2025). The role of IPSAS in enhancing transparency and accountability in the public sector of Jordan: A literature review. International Journal of Academic Research in Accounting, Finance and Management Sciences, 15(1), 413–424. https://doi.org/10.6007/ijarafms/v15-i1/24937
Mediaty, Pontoh, G. T., Nagu, N., Rahmawati, H. S., Mas’ud, A. A., & Aziz, R. H. A. (2025). Human competencies: Amplifying financial reporting quality in Indonesian local government. Journal of Risk and Financial Management, 18(8), 424. https://doi.org/10.3390/jrfm18080424
Perkembangan standar akuntansi pemerintahan dan implementasi di Indonesia. (2025). ResearchGate. https://www.researchgate.net/publication/
Sunday, O., & Ovuakporaye, D. E. (2020). IPSAS implementation, accountability and transparency in public sector organizations in Bayelsa State, Nigeria. Journal of Accounting and Financial Management, 6(3), 20–29. www.iiardpub.org
Suprianto, E. (2024). The effect of local government wealth on internet financial reporting disclosure. International Journal of Public Sector Accounting, 2(1), 55–66.
Tawiah, V. (2023). The impact of IPSAS adoption on corruption in developing countries. Financial Accountability and Management, 39(1), 103–124. https://doi.org/10.1111/faam.12288
The World Bank. (2022). Strengthening financial transparency and public sector reporting in Indonesia. Washington, DC: World Bank Publications.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 International Journal of Economics, Commerce, and Management
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
