EVALUATION OF PSAK 71 AND PSAK 72 IMPLEMENTATION ON SPORTS INDUSTRY IN THE PERIOD OF COVID-19 PANDEMIC

This research aims to evaluate the implementation of PSAK 71 and PSAK 72 inthe preparation of 2020’s financial statements by entities, the impact of theCOVID-19 pandemic in the preparation, and the mitigation effort. A case study approach was used and directed to the sports industry, based on the pandemic impact, with PT XYZ as the object. Primary data were collected through interviews, while secondary data were obtained from the entity’s financial statements and annual reports. The results showed that the football club experiences difficulties implementing PSAK 71 and PSAK 72, due to the complexity of the new arrangements brought up by the two PSAKs and to the flexibility of the business execution in PT XYZ. The combination between PSAK71 and PSAK 72 implementation and the pandemic that canceled the football league in Indonesia gave a significant effect on the preparation of financial statements for the year 2020. This was related to a larger loss allowance for trade receivables and the significant recognition of contract liability.