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Kelas 7D-D-IV Akuntansi Reguler STAN 2013Accounting TheoryNini Dewi HandayaniNolaristiNuni Tejo SariRaja Andreas SilabanRino AfriantoroRiski Prasetyo PutroPROFIT

What is Profit?John Hicks :A persons profit : maximum value the person can consume during a week and still expect to be as well off at the end of the week as at the beginning.Barton :Business profit (income) : after removing the effects of any additional capital contributions or withdrawls by owners from the initial capital investments, the increase in net wealth is the income of the period.Business Profit Terminal CaseAssume : business is to be terminatedBeginning : Owner invest : $1000Buy furniture and fixture : $1000Buy inventory : $2000 on account2nd day :Sell inventory that cost $1000 : $1500 on accountDuring the year :Remainder inventory is sold for $1500The furniture and fixtures are sold for $900Business Profit Terminal Case (cont..)What is the profit of the firm? It is the total cash receipts less the total cash outlays.

Cash received :Sale of inventory$3000Sale of furniture and fixtures 900Total3900Cash paid :Purchase of furniture and fixtures1000Purchase of inventory2000Total3000Profit$ 900Business Profit Terminal Case (cont..)Capital (beginning)Capital (ending)Invested by owner$1000Capital received :Receivebles collected andinventory cash sales$3000Furniture and fixturessold 900Total3900Cash paid :Liabilities2000Net cash$1900Capital, end of the year$1900Capital, beginning 1000Profit$ 900Business Profit Certainty of future cash1 January Year 1 :Year 1Year 2Prospective cash receipts,to be received at end of year1000012000Prospective cash outlays,to be paid at end of year60007000

Business Profit Certainty of future cash (cont..)First YearReceivable or payable value on 1/1/Y112% increaseDecrease in receivables or payablesReceivables, Year 1$ 8929$ 1071$ 10000Receivables, Year 2 9566 1148184952219Payables, Year 15357643$ 6000Payables, Year 2 5580 670109371313$ 7558$ 906$ 4000Business Profit Certainty of future cash (cont..)Journal entries for Year 1 :

1/1/Y1 :

Receivables$18495Payables$10937Capital7558

31/12/Y1:

Receivables$2219Revenue$2219

Expense$1313Payables$1313Cash$10000Receivables$10000

Payables$6000Cash$6000

Revenue$2219Expense$1313Profit and Loss Summary906

Profit and Loss Summary$906Capital$906

Capital$4000Cash$4000Business Profit Certainty of future cash (Conclusion)Increase in value of the total assets that concurrently increases capital during a given period revenue for the period.Increase in value of the total liabilities that concurrently decreases capital during a given period expense for the period.Profit for period = increase in the value of capital, as measured at the beginning and the end of the period.All values increase at predetermined rate. So, revenue is the interest earned on total asset, expense is the interest incurred on total liabilities, and profit is the interest of the investment (capital)

Profit is not equivalent to net cash receipts for a period.Profit is the increase in the value of capital, the difference between the values of assets and liabilities at the beginning and the end of the reporting period.Cost and ValueCost = Value

Cost = the present value of the cash related to the benefits = saat pembeli dan penjual yakin akan adanya nilai benefit masa depan, dengan tingkat pengembalian yang masuk akal Cost = value pada saat tanggal terjadinya transaksiCost Value Historical cost tidak sama dengan current value = karena nilai selalu berubah bergantung pada waktu perubahan dari ekpektasi masing-masing individu

Profit under uncertaintyTHE IDEAL CASE = didukung oleh penganut Current Value Fokus pada perubahan nilai dari aset dan liability menggunakan accrual accounting

THE TERMINAL CASE = didukung oleh penganut H.Cost Fokus pada kas yang diterima dan dikeluarkan , perbedaan dari cash inflow dan cash outflow Biasanya digunakan pada bisnis jangka pendek, kapan berakhinya bisnis tersebut diketahui Accrual & Defferal digunakan apabila bisnis jangka panjang, dan informasi tentang profit ingin diketahui sebelum bisnis tersebut berakhir.Sesuai dengan asumsi going concern, apabila perusahaan dianggap mampu mempertahankan kesinambungan perusahaan maka penghitungan digunakan accrual basic , apabila perusahaan dianggap tidak mampu mempertahankan kelangsungan hidupnya maka laporan keuangan entitas tersebut wajib disusun berdasarkan asumsi likuidasi dengan basis nilai realisasi. 11Profit vs earningsPROFIT sesuai dengan konsep capital maintanance : hanya kelebihan jumlah inflow of assets yang digunakan untuk mempertahankan modal yang diakui sebagai profit. Perubahan dari wealth approach pada ideal and terminal case = perubahan tingkat kesejahteraan dari suatu entitas bisnis FASB = > profit = comprehensive income : perubahan modal dari suatu entitas diantara dua periode waktu, tidak termasuk perubahan investasi dan distribusi kepada pemilik. Dimana modal menggambarkan nilai pada periode tertentu berdasarkan given scale

EARNING Komponen dari laba komprehensif (profit) earning digunakan untuk mengukur performance dalam suatu periode= a measure of performance

VALUEPREFERENSI MASING-MASING INDIVIDU

VALUE SIFATNYA PERSONAL UANG SEBAGAI STANDARD COMMODITY

Ekspektasi Keuntungan Masa Depan dari kepemilikan suatu bendaSi A bisa menganggap barang Z sangat berguna dan bernilai, sedangkan si B bisa menganggap barang Z tidak berguna1 Anggur = 2 Jeruk1 Anggur = 3 Apel1 Anggur = 5 PisangAtau sering dikenal sbg Exchange Price & menggunakan ratioSDM diukur dari nilai uang melalui harga, dimana rasio dalam bentuk uang/SDM lain dapat bertukar13A Structure of pricePAST PRICESCURRENT PRICESFUTURE PRICESDigunakan untuk mengungkapkan nilai relatif dari suatu komoditasFuture Replacement /current costFuture Exit PriceReplacement /current costExit PriceCalculated Present ValueHistorical CostAkuntan setuju bahwa future prices ga bisa digunakan dalam pelaporan, karena sifatnya yang TIDAK OBJEKTIFIdeal value yang digunakan adalah Present value, untuk beberapa item moneter yang digunakan. Walaupun untuk beberapa item jangka pendek discounted rate ga dipake Untuk item non moneter, nilai yang dipakai historical cost, current cost/replacemen cost, exit price. Ato kombinasi dari ketiganya.Akuntansi Konvensional mendukung = H.COST ;; AARF mendukung Ccost Accounting14ValueAAS 25/AASB 1023: Assets of a defined contribution plan and a defined benefit plan are measured at their net market values as at the reporting date.IAS 41/AASB 141: The valuation method adopted for forests and other biological assets is the fair value.IAS 16/ AASB 116: Allows for the use of either a cost model (the traditional historical cost approach) or revaluation model where defined classes of assets are revalued to a fair market value.IAS 36/ AASB 136: Requires the comparison of the recoverable amount of an asset with the carrying value where there is an indication than an asset may be impaired.Accounting Theory Monograph No. 10(Measurement in Financial Accounting)Relative Current Value AccountingAssets and Liabilities are remeasured at each reporting date to their value to the entity.Profit: the change in the relative value of assets and liabilities for a defined period.The changes in wealth from operating and holding net assets are incorporated into the concept of profit, which flows on to residual equity.CapitalCapital = net assets = the difference between the sums of the total assets and total liabilities.Profit - the beginning amount of capital is maintained - the costs are recovered.Two different views of Capital:Financial CapitalPhysical CapitalFinancial CapitalFocuses on the owners contributions to the entity that financed the assets.Capital = cash invested by owners + profits reinvested by retention in the businessFinancial capital maintenance the ability to invest the same amount of money at the end as at the beginning of the period.Profit = the amount of cash received by the firm over the cash (or cash equivalent) investment by owners into the firm.Physical CapitalFocuses on the ability of the firm to generate goods or services.Physical capital maintenance = the ability to achieve the same physical level of production at the end of the period as the beginning.Productive Capacity:The same physical non-monetary assets that the entity possessed at the beginning of the period.The volume of production.The volume of sales.

Holding gain or Capital maintenance adjustmentFinancial Capital = changes in the values of assets and liabilities are holding gain or losses.Physical Capital = increases in the prices of items that a firm must have if it is to continue in business are capital maintenance adjustmentPhysical Capital = decrease in current cost should be a holding loss in the income statement unless it can be offset against an existing amount of capital maintenance adjustmentKritik-kritik terhadap kedua pandanganCAPITAL MAINTENANCEKritik terhadap pandangan Financial CMProfit is overstatedHolding gain cant distributed as dividendInvestor predictions may be misleadingHigher cost of replacing assetKritik-kritik terhadap kedua pandanganCAPITAL MAINTENANCEKritik terhadap pandangan Physical CMMaintenance is management function not accountantMaintenance of the present physical capacity is not necessarily advantageous to the owners

SCALENominal DollarPurcashing Power of the DollarScale (skala) adalah pemberi arti pada angka hasil measurement (pengukuran)Akuntansi konvensional menganggap bahwa value dari dolar dapat di ekspresikan secara sederhana sebagai kuantitas walaupun waktu terus berjalan, namun yang lainnya meanggap bahwa yang terpenting adalah kualitas dimana purchasing power dari dolar harus samaSCALE23 SCALE : nominal dollar- Used in conventional accounting- The system is simple- Dollar in different time is the same- The quantity can be subtracted or added all the time period- Meaningfull of quantity of dollar is in its quantity of dollar- Uncomplicated- Too simplistic24 SCALE : purcashing power of dollarConstant dollar accountingSame currency domain, Through time, the value of money changes as its demand and supply functions change due to variations in peoples expectations and other causes.Dollar of different year are all expressed in term of the current year1993 => es teh manis + bakwan = Rp50 2013 => es teh manis + bakwan = Rp3.00025 Confusion between price level adjustment and current costNominal Dollar Scale :

Sales$220.000Cost in 2000$100.000 -Gain$120.000Purcashing Power ScaleSales 2012$220.000Cost restated 2012:$100.000 x150/100$150.000 -Gain (real)$70.000Sometimes, current cost and exit price accounting system are described as inflation accounting system. This description is not entirely accurate. Inflation is the change in specific priceCurrent cost accounting and exi price accounting changes in specific price of assets.Eg: land purchase in 2000 for $100.000 when the general price index is 100. and sold in 2012 for $220.000 when the general price index is 15026 www.themegallery.comIPIReflect changes in investment good priceSelection of IndexGDP Implicit DeflatorComprehensive index for all goods and service produced in economyCPIIndex that restricted only to consumer goodsObjections to price level adjustment:UK ASC in 1973 historical cost must adjusted to the general price level:It is abandoned cause:Being confusion it caused (1975) cost of implementation general index is nor perfect reresentationInformation is not usefull to users Reason the change in purchasing power have been ignored by accouting profession

Monograph No.10 summary on page 21Purchasing power accountancy ignoredThere is no completely satisfactory measure of the value of monetary unit in any countryThere is significant difficulty in deciding on the appropriate measure for a multinational operator, especially if most of the entitys activities are conducted abroadThe consequences of recognizing money in the value of the monetary unit have immediate implications for the whole system of financial contracts and taxationsMeasurement of Change in Value Accountants Vs Economists Contra to Recognising Unrealised Gains:- Superannuation Industry- Insurance Industry- Banking Industry- Critics

Evidence of Usefulness of Price Level Adjusted DataFinancial Analysts were given 3 types of information:1. Conventional (Unadjusted) Reports 2. Conventional (Unadjusted) + Adjusted Reports 3. Adjusted Reports only

Inflation adjusted information can influence investment evaluations, but not strongly

Dyckman ResearchBenston & Krasney ResearchDirect PlacementOfficer:

GAAP 89%ReplacementCost 9%Constant Dollar 2%Common Stock Investment Officers

GAAP 89%ReplacementCost 9%Exit Price 6%Constant Dollar 2%

No one wanted present valueInflation Accounting (FASB 33)A range of accounting systems designed to correct problems arising from historical cost accounting in the presence of inflation

SFAS No. 33 was quietly rescinded in 1986Kesimpulan

Alasan yang Mendukung Price Level Adjusted Data

Laporan keuangan yang tidak disesuaikan dengan perubahan tingkat harga umum, akan terdiri dari berbagai jenis asset dan klaim, yang disajikan dalam nilai uang dengan daya beli yang berbeda.Akuntansi biaya historis konvensional tidak mengukur income secara memadai akibat penandingan nilai uang dari besar (size) yang berbeda pada laporan laba rugi.Akuntansi tingkat harga umum relatif mudah diterapkan.Memberikan informasi yang relevan untuk digunakan bagi manajemen dan untuk evaluasi.

Alasan yang Menolak Price Level Adjusted Data

Sebagian besar studi-studi empiris menunjukkan bahwa relevansi informasi tingkat harga umum itu lemah atau tidak berterima.Perubahan tingkat harga umum hanya menjelaskan perubahan pada tingkat harga umum dan tidak menjelaskan perubahan pada tingkat harga spesifik.Dampak inflasi akan berbeda pada setiap perusahaan, sehingga tidak komparatif,Biaya untuk menerapkan akuntansi tingkat harga umum melebihi keuntungannya.Terima Kasih