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Standard public accounting
Introductory Management Accounting (BUSI 294)
The University of British Columbia
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Accounting standards are an important issue in the profession and all users of financial reports. Therefore, the accounting standard setting mechanism must be regulated in such a way as to provide satisfaction to all interested parties. Accounting standards will continue to change and develop according to the developments and demands of society. Accounting standards are generally accepted as standard rules, which are supported by sanctions for any non-compliance (Belkaoui, 2006). One of the accounting standards is the Public Sector Accounting Standards.
The public sector financial accounting standards themselves in Indonesia are developing rapidly due to the implementation of government policies, namely regional autonomy and fiscal decentralization which focus on regional government. In addition, the rise of globalization which demands competitiveness in every country also demands competitiveness in each local government. In addition, the preparation of Public Sector Financial Accounting Standards also certainly has its own objectives to be achieved.
It is from this background that the author wants to make a paper entitled "UNDERSTANDING PUBLIC SECTOR ACCOUNTING STANDARDS" to discuss in more detail what public sector accounting standards are, their goals and their development.
1 Problem Formulation
Based on the background above, the formulation of the problem in the discussion of this paper is as follows:
What is the basis for the need for public sector financial accounting standards (SAKSP)?
What are the objectives of preparing SAKSP?
How is the development of SAKSP?
What are government accounting standards?
1 Purpose
Based on the formulation of the problem above, the purpose of writing this paper is as follows:
To find out how the basic needs of public sector financial accounting standards (SAKSP)
To find out what are the objectives of preparing SAKSP
To find out how the development of SAKSP
To find out how government accounting standards
1 Benefits Benefits For Readers
With this paper is expected to provide benefits to the community, especially the readers. With the aim of learning media and also as a medium to add insight to readers, especially in the field of public sector accounting, especially in understanding public sector accounting standards in public sector accounting. Benefits for Writers
With this paper can help writers in developing ideas and digesting existing information. Besides that, it can also be used to add insight or knowledge to the author and train writers in typing quickly.
2 Basic Needs of Public Sector Financial Accounting Standards
Basic Requirements for Public Accounting Standards Accounting standards are guidelines or principles governing accounting treatment in the preparation of financial reports for the purpose of reporting to users of financial statements, while accounting procedures are specific practices used to implement standards. To ensure that the established procedures are followed, the public sector accounting system must be equipped with an internal control system for the receipt and disbursement of public funds. Public sector accounting standards are also the accounting principles applied in compiling and presenting financial reports of public sector organizations. The Indonesian government sets accounting standards for government called government accounting standards (SAP).
The absence of adequate accounting standards will have negative implications in the form of low reliability and objectivity of the information presented, inconsistencies in financial reporting and difficulties in auditing. The process of setting and implementing public sector accounting standards is a serious matter for accounting practice, the accounting profession, and for interested parties. Making a standard may be beneficial for one party, but it can also
detrimental to the other party. There are several things that must be considered in setting accounting standards, including:
the private sector, and to harmonize financial reports between accounting and economic basis.
SAKSP was developed in accordance with standards that apply at the international level with the hope of achieving consistent and comparable financial information for all jurisdictions. Although in practice and the application of accounting and financial management principles to public sector entities it can occur both in entities with the same or different jurisdiction levels. It all depends on existing policies and practices.
So far, public sector activities have been managed with poor quality financial information. There is no information on assets and liabilities and only shows revenue items such as sales of business units or government assets. So that the information available is often unreliable, unaudited and can only be used as a decision consideration for the period after the reporting period.
The implementation of SAKSP will lead to a better government accounting and financial management system. So the resulting financial reports have better information and more reliable forecasting and budgeting as well as management of economic resources (Bastian, 2005:130-131).
2 Government Accounting Standards
According to the Government Regulation of the Republic of Indonesia Number 71 of 2010 concerning Government Accounting Standards Chapter I Article 1, states that Government Accounting Standards, hereinafter abbreviated as SAP, are accounting principles that are applied in preparing and presenting government financial reports.
The SAP preparation process began with the formation of a Committee by the Minister of Finance until mid-2004 which resulted in a draft SAP consisting of a conceptual framework and 11 standard statements, all of which had been prepared through due process. The process of preparation (Due Process) that is used is a process that is generally accepted internationally with adjustments to the conditions that exist in Indonesia. Adjustments are made, among others, due to consideration of urgent needs and the ability of users to understand and implement the standards set. SAP setup stages are as follows.
a. Identify Topics to Develop into Standards
b. Establishment of a Working Group (Pokja) within KSAP
c. Limited Research by the Working Group
d. SAP draft writing by Working Group
e. Discussion of the Draft by the Working Committee
f. Draft Decision Making for Publication
g. Launch of the SAP Publication Draft (Exposure Draft)
h. Limited Hearings and Public Hearings
i. Discussion of Feedback and Feedback on the Publication Draft
j. Standard Finalization
After experiencing a long process, Government Accounting Standards (SAP) which have been long awaited by various parties have been stipulated by Government Regulation Number 24 of 2005 dated 13 June 2005 concerning Government Accounting Standards (PP SAP). With the enactment of PP SAP, for the first time Indonesia has government accounting standards. Marking the Commencement of Implementation of Government Accounting Standards, the Vice President of the Republic of Indonesia launched Government Accounting Standards at the Vice Presidential Palace on July 6 2005. The event was marked by the submission of Government Accounting Standards to the Chairman of BPK, Minister of Finance, Minister of Home Affairs, Governor of DKI Jakarta, Regent of Toli-Toli and Mayor of Pangkal Pinang. In his remarks the Vice President stated that the implementation of SAP is mandatory for the central and regional governments.
SAP status
SAP positions are divided into two types:
Law Number 17 of 2003 concerning State Finance, SAP is stipulated by Government Regulation.
Each reporting entity of the central government and local government is required to implement SAP. In addition, it is also hoped that there will be efforts to harmonize various regulations both at the central government and regional governments with n SAP.
Basis for Needs of Public Accounting Standards Accounting standards are guidelines or principles governing accounting treatment in the preparation of financial reports for the purpose of reporting to users of financial statements while accounting procedures are specific practices used to implement standards.
The purpose of SAKSP is to provide accounting guidelines that are expected to be applied for recording financial transactions and are equipped with account classifications and recording procedures as well as standard journals that have been
in accordance with the cycle of local government activities that include budgeting, treasury, and reporting.
In 2012, the Indonesian Institute of Accountants-Public Sector Accounting Compartment (IAI-KASP) has developed a series of recommended accounting standards for use in public sector entities called Public Sector Financial Accounting Standards (SAKSP).
According to the Government Regulation of the Republic of Indonesia Number 71 of 2010 concerning Government Accounting Standards Chapter I Article 1, states that Government Accounting Standards are accounting principles that are applied in preparing and presenting government financial reports.
3 Suggestions
It is hoped that this paper can help readers understand the material content of public sector accounting standards. However, it is certain that the preparation of this paper is still far from being perfect due to limited knowledge, references and the structural grammar of the language from which this paper is made. Therefore, we will need constructive criticism and suggestions for this paper to improve the preparation of future papers.
Standard public accounting
Course: Introductory Management Accounting (BUSI 294)
University: The University of British Columbia
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