Accounting Treatment for Financing Impairment on Sharia Banks in Indonesia

This research analyzes the accounting and calculation methods used in performing impairment on financing and aims to determine the accounting treatment used and the amount of impairment for each financing activities. The method used in this research is descriptive analysis. Data have been obtained through document analysis and observation. The results show that the PSAK 50/55 method used to perform impairment was only used in Murabahah financing, while other types of financing used the Financial Services Authority Regulation on Asset Quality Assessment of Sharia Commercial Banks and Sharia Business Units. The results of the calculations of impairment in Islamic banking showed that murabahah financing had the largest portion of financing compared to the total financing in Sharia banking in Indonesia, and the average value of impairment of murabahahh financing tends to be higher than other impairment methods others.