Factors Affecting The Selection of Fair Value Methods for Investment Property
Keywords: Leverage, Profitability, Asymmetric Information, Fair Value Difference, Fair Value Method Selection
Abstract
The purpose of this study is to analyze the effect of leverage, profitability, information asymmetry, and the gain on the fair value difference on the selection of the fair value method for investment property by PSAK 13. The population of this study is all companies listed on the Indonesia Stock Exchange for the period 2016-2018. The sample selected by purposive sampling amounted to 53 companies. The data processing technique uses the STATA 14.2 program. Logistic regression is used to analyze the hypothesis. Findings. The results of this study indicate that leverage, profitability, and information asymmetry do not affect the selection of the fair value method for an investment property. However, the gain on fair value difference negatively affects the choice of the fair value method for an investment property.
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References
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Wahyuni, E. T., Soepriyanto, G., Avianti, I., & Naulibasa, W. P. (2019). Why Companies Choose The Cost Model Over Fair Value For Investment Property?. International Journal of Business and Society, Vol. 20 No 1, 161-176.
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Farahmita, A., & Siregar, S. V. (2014). Faktor-Faktor yang Mempengaruhi Kemungkinan Perusahaan Memilih Metode Nilai Wajar untuk Properti Investasi. Simposium Nasional Akuntansi, 14-17; 20-21.
Fields, T.H., Lys, Thomaz Z., Vincent, Linda (2001). Empirical Research on Accounting Choice. Journal of Accounting and Economics, 31, 255-307.
Hasan, D. M., Abdullah, D. S., & Hossain, D. S. (2014). Qualitative Characteristics of Financial Reporting. The Pakistan Account, 23-31.
IAI, (2011). PSAK 13. Jakarta: Dewan Standar Akuntansi
Keuangan. IAI, (2007). PSAK 16. Jakarta: Dewan Standar Akuntansi Keuangan.
Ishak, Hani Soraya, Tahir, Henny Hazliza M., Ibrahim, M. Kamil, Wahab, Ware A.E., (2012). Determinants of Accounting for Investment Property (FRS 140) in the Property sector: Evidence from Malaysia. Research paper presented at 3rd International Conference on Business and Economic Research, March 2012, Bandung, Indonesia.
Landsman, W. R. (2007). Is Fair Value Accounting Information Relevant And Reliable? Evidence From Capital Market Research. Accounting and Business Research.
Pangestu, M. E. (2016, April 14). Industri Jasa Memiliki Potensi Besar terhadap Peningkatan Ekonomi Indonesia. (K.R. Indonesia, Interviewer) Retrieve from https://ristekdikti.go.id/industri-jasa-memiliki-potensi-besar-terhadap-peningkatan- ekonomi-indonesia/
Pratiwi, M. W., & Tahar, R. S. (2017). Analisis Pengaruh Tingkat Hutang, Ukuran Perusahaan, Informasi Asimetri, Selisih Keuntungan Nilai Wajar, dan Kepemilikan Saham Terhadap Pemilihan Metode Nilai Wajar pada Properti Investasi. Media Riset Akuntansi, 113-117.
Quangli, A., Avallone, F. (2010). Fair Value or Cost Model? Drivers of Choice for IAS 40 in the Real estate Industry. European Accounting Review, Vol. 19, No. 3, 461-493.
Seng, D., & Su, J. (2010). Managerial Incentives Behind Fixed Asset Revaluation,
International Journal of Business Research, Vol. 10, No. 2.
Wahyuni, E. T., Soepriyanto, G., Avianti, I., & Naulibasa, W. P. (2019). Why Companies Choose The Cost Model Over Fair Value For Investment Property?. International Journal of Business and Society, Vol. 20 No 1, 161-176.
Watts, R. L., & Zimmerman, J. L. (1990). Positive Accounting Theory: A Ten Year Perspective.The Accounting Review. Vol, 65, No, 1. January 1990pp, 131-156
Weisesa, I. (2018). Faktor-Faktor Yang Mempengaruhi Pemilihan Metode Nilai Wajar Untuk Properti Investasi Pada Perusahaan Jasa Sektor Non-Properti, Thesis Bina Nusantara, unpublished
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Financial Accounting: Tools for Business Decision Making. Seventh Edition. Hoboken, NJ: John Wiley & Sons, Inc.
Published
Jun 2, 2021
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How to Cite
Setijaningsih, H. T., Handoyo, S. E., & Sundari, N. (2021). Factors Affecting The Selection of Fair Value Methods for Investment Property . Jurnal Organisasi Dan Manajemen, 17(1), 111–121. https://doi.org/10.33830/jom.v17i1.1052.2021
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