Abstract
This study aims to analyze (1) whether valuation of biological assets impacts a company’s discounted cash flow and (2) to discuss the basis of measurement for biological assets. A case study was conducted through data documentation and interviews. The problem occurred at PT.ABC in implementing PSAK 69 (the Indonesian International Financial Reporting Standards) as the new accounting standard. PSAK 69 was established in mid-2015, officially approved in December 2015, and became effective on January 01, 2018. Research results show that fair value from the Ministry of Trade has significantly impacted the company’s discounted cash flow, while fair value from Public Appraisal Services (KJPP) had no significant impact on the company’s discounted cash flow.
| Original language | English |
|---|---|
| Title of host publication | Accounting, Auditing, CSR, and the Taxation in a Changing Environment |
| Subtitle of host publication | A Study on Indonesia |
| Publisher | Nova Science Publishers, Inc. |
| Pages | 79-97 |
| Number of pages | 19 |
| ISBN (Electronic) | 9781536165180 |
| ISBN (Print) | 9781536162776 |
| Publication status | Published - 1 Jan 2019 |
Keywords
- Biological assets
- Discounted cash flow
- Measurement of biological assets
- PSAK 69