Research Article
Statement of Financial Accounting Standard No.34 Applied in Recognition of Revenue in the North Jakarta Breakwater Construction Project by PT Mina Fajar Abadi
@INPROCEEDINGS{10.4108/eai.26-9-2020.2302684, author={Tommy Kuncara and Ibnu Haris Nasution}, title={Statement of Financial Accounting Standard No.34 Applied in Recognition of Revenue in the North Jakarta Breakwater Construction Project by PT Mina Fajar Abadi}, proceedings={Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICETLAWBE}, year={2020}, month={12}, keywords={revenue recognition settlement method psak no34}, doi={10.4108/eai.26-9-2020.2302684} }- Tommy Kuncara
Ibnu Haris Nasution
Year: 2020
Statement of Financial Accounting Standard No.34 Applied in Recognition of Revenue in the North Jakarta Breakwater Construction Project by PT Mina Fajar Abadi
ICETLAWBE
EAI
DOI: 10.4108/eai.26-9-2020.2302684
Abstract
Construction service companies have distinctive characteristics, where not all of the project work processes are completed in one accounting period, and the commencement of work cannot be ensured at the beginning of the year, depending on the contract of the agreed construction work contract. There are several methods that can be used by construction companies in recognizing their income, and we know that income is one of the components of profit formation. Revenue must be measured fairly and must be confirmed in accordance with revenue recognition and the principles of the Statement of Financial Accounting Standards. PT. Mina Fajar Abadi uses the basis of cash in recognizing her income, which is by recording income and expenses in the income statement when cash is received or paid, it is not in accordance with the Statement of Financial Accounting Standards on construction services. If the project is carried out the total revenue and contract expenses can be measured reliably, then the company should apply the percentage of completion method in recognizing its income, thus the income statement presented by the company will provide the right information for decision making for the company.
