Accounting Choice for Intangible Assets in Indonesia’s Entertainment and Media Entities

I'ana Umma; Piscabrian Boeny  Saputra; Muhammad  Ubaidillah; Muhammad Wildan  Sholih

doi:10.32534/jpk.v11i4.6652

Authors

I'ana Umma Accounting, Business and Finance Department, Vocational School, Diponegoro University
Piscabrian Boeny Saputra Accounting, Business and Finance Department, Vocational School, Diponegoro University
Muhammad Ubaidillah Accounting, Business and Finance Department, Vocational School, Diponegoro University
Muhammad Wildan Sholih Accounting, Business and Finance Department, Vocational School, Diponegoro University

DOI:

https://doi.org/10.32534/jpk.v11i4.6652

Abstract

A good understanding of the management and reporting of intangible assets is one of the efforts made by the entity to maintain its reputation, financial performance, and the trust of investors and stakeholders. The existence of gaps in accounting practices causes the emergence of differences in managers’ behaviour in preparing financial statements. This is what makes the income strategy related to intangible assets can be informative or opportunistic. By analyzing factors such as entity size, leverage, and sales compensation, this study aims to examine whether these strategies are informative or opportunistic. This study is a cross-sectional and time-series study with a quantitative design. The data collected were taken from the Annual Report of Entity of Entertainment and Media listed on the IDX with a period of 2021-2022. The size of the entity has a significant effect on income strategies that shows intangible assets reporting tends to be conservative by presenting informatively. Meanwhile, highly leveraged entities are more likely to adopt aggressive strategies; in other words, leverage influences opportunist behaviour in expressing income strategies regarding intangible assets. The impact of sales compensation on financial managers' income strategies for intangible assets is not consistent and can be influenced by various factors.

Keywords:

Accounting Choice, Intangible Asset, Informative, Opportunistic, Manager Behaviour

Downloads

Download data is not yet available.

References

Al-Asfour, F. (2024). Earnings Management: A Synthesis of a Century of Research. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4799791

Alfi, M. A. D. W., & Suwaidi, R. A. (2023). Analisis Nilai Perusahaan Pada Perusahaan Consumer Cyclicals Di Bursa Efek Indonesia. Jurnal E-Bis, 7(2), 647–658. https://doi.org/10.37339/e-bis.v7i2.1313

Aridyanto, R. M., & Marfiana, A. (2021). Pengaruh Keahlian Keuangan, Kompensasi Direksi, Profitabilitas, Pertumbuhan Perusahaan dan Kepemilikan Institusi Pada Penghindaran Pajak Perusahaan. Jurnal Manajemen STIE Muhammadiyah Palopo, 7(1), 31–47. https://doi.org/http://dx.doi.org/10.35906/jm001.v7i1.719

Bansal, M. (2024). Earnings management: a three-decade analysis and future prospects. Journal of Accounting Literature, 46(4), 630–670. https://doi.org/10.1108/JAL-10-2022-0107

Brown, A., Gregory, J., & Wunsch-Vincent, S. (2022, November 11). Intangible Assets Grew to USD 74 trillion. Which are the most Intangible-asset Intensive Firms? WIPO (Global Innovation Index).

Bui, T. H. (2024). Past, present, and future of earnings management research. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2023.2300517

Christian, N., & Julyanti, L. (2022). ANALISIS KASUS PT. ASURANSI JIWASRAYA (PERSERO) DENGAN TEORI DASAR FRAUD. Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi), 6(2), 153–165. https://doi.org/https://doi.org/10.31955/mea.v6i2.1982

Chung, D. J., Kim, B., & Syam, N. B. (2020). A Practical Approach to Sales Compensation: What Do We Know Now? What Should We Know in the Future? Foundations and Trends® in Marketing, 14.

Dancaková, D., Sopko, J., Glova, J., & Andrejovská, A. (2022). The Impact of Intangible Assets on the Market Value of Companies: Cross-Sector Evidence. Mathematics, 10(20). https://doi.org/10.3390/math10203819

Fadhilah, A., Iqbal, M., Wijaya, M. M., & Ihsan, S. H. (2023). Analisis Pengaruh Faktor Behavior Finance dan Pengungkapan Intangible Asset Terhadap Pengambilan Keputusan Oleh Investor. Jurnal Ilmiah Multidisiplin, 2(8). https://doi.org/https://doi.org/10.56799/jim.v2i8.1909

Faster Capital. (2024, June 12). Amortization of Intangibles: Monetizing Entertainment Rights for Success. https://fastercapital.com/content/Amortization-of-Intangibles--Monetizing-Entertainment-Rights-for-Success.html

Florin, B. (n.d.). DEVELOPMENT OF DECISION MAKING BY MANAGERS WITH FINANCIAL AND ACCOUNTING INFORMATION.

Global Innovation Index. (2022). INDONESIA (The Global Innovation Index (GII) ranks world economies according to their innovation capabilities).

Grzybek, O. (2023). Are accounting choices for intangible assets informative or opportunistic? Evidence from Poland. Journal of International Accounting, Auditing and Taxation, 51. https://doi.org/10.1016/j.intaccaudtax.2023.100549

Haryadi, D., Leon, H., & Ricky. (2023). Peran Direktur Wanita Dalam Pelaporan Keuangan Konservatif. SEIKO : Journal of Management & Business, 6(2), 336–346.

Hazan, E., Smit, S., Woetzel, J., Cvetanovski, B., Krishnan, M., Gregg, B., Perrey, J., & Hjartar, K. (2021). Getting tangible about intangibles The future of growth and productivity? www.mckinsey.com/mgi.

Heryitno, A. (2022). Pengaruh Motivasi Kerja dan Kompensasi Terhadap Kinerja Karyawan Pada PT Bentoro Adisandi Ivena Batam. In Skripsi. Program Studi Manajemen Universitas Putera Batam.

Holthausen, R. W. (1990). ACCOUNTING METHOD CHOICE Opportunistic Behavior, Efficient Contracting, and Information Perspectives*. Journal of Accounting and Economics, 12, 207–218.

Hussinki, H., King, T., Dumay, J., & Steinhöfel, E. (2024). Accounting for intangibles: a critical review. Journal of Accounting Literature. https://doi.org/10.1108/jal-05-2022-0060

Isdina, S. H., & Putri, W. W. R. (2021). Pengaruh Laba dan Arus Kas Terhadap Kondisi Financial Distress. Jurnal Ilmiah Akuntansi Kesatuan, 9(1), 147–158. https://doi.org/https://doi.org/10.37641/jiakes.v9i1.490

Jaya, E. P., & Kuswanto, R. (2021). PENGARUH RETURN ON ASSETS, DEBT TO EQUITY RATIO DAN PRICE TO BOOK VALUE TERHADAP RETURN SAHAM PERUSAHAAN LQ45 TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2016 –2018. Jurnal Bina Akuntansi, 8(1), 51–67. https://doi.org/https://doi.org/10.52859/jba.v8i1.136

Kullab, Y., & Yan, C. (2018). THE IMPACT OF INSTITUTIONAL OWNERSHIP ON INCOME ACCOUNTING STRATEGY: EVIDENCE FROM BAHRAIN. Academy of Accounting and Financial Studies Journal, 22(1). https://www.abacademies.org/articles/the-impact-of-institutional-ownership-on-income-accounting-strategy-evidence-from-bahrain-1528-2635-22-1-140.pdf

Muyasaroh, A., & Nurhayati, R. (2019). Analisis Tingkat dan Kualitas Pengungkapan Aset Takberwujud pada Perusahaan Berbasis Ilmu Pengetahuan atau Teknologi di Indonesia. Accounting and Business Information System Journal, 7(4), 1–14. https://doi.org/https://doi.org/10.22146/abis.v7i4.58864

Novy-Marx, R. (2020). Profitability Factor Details: Taxable Income is Tied to Future Profitability and Returns. Alpha Architect. https://alphaarchitect.com/2020/12/profitability-and-future-stock-returns/

Nyabakora, W. I. (2023). Earnings management in public companies: a bibliometric review. SN Business & Economics, 3(9). https://doi.org/10.1007/s43546-023-00546-w

Qureshi, M. J., & Siddiqui, D. A. (2021). The Effect of Intangible Assets on Financial Performance, Financial Policies, and Market Value of Technology Firms: A Global Comparative Analysis. Asian Journal of Finance & Accounting, 12(1). https://doi.org/10.5296/ajfa.v12i1.16655

Rahma, M., Wijaya, M., & Priyatama, T. (2021). Analisis Pengungkapan Modal Intelektual. Jurnal Ilmiah Universitas Batanghari Jambi, 21(3), 1232. https://doi.org/10.33087/jiubj.v21i3.1663

Riordan, M. H., & Williamson, O. E. (1985). ASSET SPECIFICITY AND ECONOMIC ORGANIZATION. International Journal of Industrial Organization, 3, 365–378.

Scott, W. R. (2015). FINANCIAL ACCOUNTING THEORY Seventh Edition. www.pearsoncanada.ca.

Sharma, A., Branch, B., Chgawla, C., & Qiu, L. (2023). Explaining Market-to-Book Explaining Market-to-Book The relative impact of firm performance, growth, and risk. University West of Georgia. https://www.westga.edu/~bquest/2013/MarketToBook2013.pdf

Siswantoro. (2020). Pengaruh faktor tekanan dan ukuran perusahaan terhadap kecurangan laporan keuangan. Jurnal Akuntansi, Keuangan, Dan Manajemen, 1(4), 287–300. https://doi.org/10.35912/jakman.v1i4.76

Susilowati, S., & Oktarina, D. (2021). PENGUNGKAPAN MODAL INTELEKTUAL. Jurnal Ecopreneur, 4(1). www.idx.co.id

Sutjiadi, A., Moeritty, K., Kurniawati, M., & Nitiwaluyo, R. (2014). THE INFORMATION PERSPECTIVE ON DECISION USEFULNESS.

Utomo, A. I. (2015). FAKTOR-FAKTOR YANG MEMPENGARUHI PENGUNGKAPAN MODAL INTELEKTUAL DAN DAMPAKNYA TERHADAP NILAI PERUSAHAAN. In Skripsi. Program Studi Akuntansi Universitas Diponegoro.

Wardhani, A. P., Kusumawardhani, A., & Ubaidillah, M. (2021). The Effect of Intangible Asset On Competitive Advantage and Firm Performance; Study on Budget Accommodation in Semarang City. SALAM: Jurnal Sosial Dan Budaya Syar-i, 8(2), 383–404. https://doi.org/10.15408/sjsbs.v8i2.19987

Watts, R. L., & Zimmerman, J. L. (1978). Towards a Positive Theory of the Determination of Accounting Standards. THE ACCOUNTING REVIEW, Lili(1).

Watts, R. L., & Zimmerman, J. L. (1986). Positive Accounting Theory. Prentice-Hall, Englewood Cliffs, N.J.

Wijaya, R. A., & Suganda, R. (2020). Pengaruh investment opportunity set, kinerja keuangan, dan intangible asset terhadap nilai perusahaan. AKUNTABEL, 17(2), 215–222. http://journal.feb.unmul.ac.id/index.php/AKUNTABEL

Zmijewski, M. E., & Hagerman, R. L. (1981). AN INCOME STRATEGY APPROACH TO THE POSITIVE THEORY OF ACCOUNTING STANDARD SETTING/CHOICE. Journal of Accounting and Economics, 3, 129–149.