Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari

The Global Risk Report 2023 reveals that the domination in global risks shifts from economic risks towards environmental risk. Indonesia is exposed to significant environmental risk partly due to its natural landscape. Indonesia has great concern in promoting a sustainable environment demonstrated b...

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Main Author:	Perwitasari, Widya
Format:	Thesis
Language:	English
Published:	2024
Subjects:	Investment capital formation speculation Investment, capital formation, speculation
Online Access:	https://ir.uitm.edu.my/id/eprint/107091/1/107091.pdf
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id	my-uitm-ir.107091
record_format	uketd_dc
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Mohamed, Norazida Mahmud, Radziah Mita, Aria Farah
topic	Investment capital formation speculation Investment, capital formation, speculation
spellingShingle	Investment capital formation speculation Investment, capital formation, speculation Perwitasari, Widya Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari
description	The Global Risk Report 2023 reveals that the domination in global risks shifts from economic risks towards environmental risk. Indonesia is exposed to significant environmental risk partly due to its natural landscape. Indonesia has great concern in promoting a sustainable environment demonstrated by actively participating in global initiatives. Statistics indicates that Indonesia is exposed to significant forest resource exploitation and forest crimes. The Corruption Eradication Commission (CEC) in 2015 uncovered a significant amount of timber production is unreported due to allegedly illegal logging activities, indicating a significant amount of government revenue loss. Previous studies suggested that accounting is valuable in addressing forest crimes by promoting transparency, accuracy, and accountability in financial transactions related to forestry activities. However, previous studies show inconsistent accounting policies by forestry companies, which can lead to a lack of standardized reporting and comparability. The CEC in 2015 uncovered that monitoring and enforcement of regulations and financial reporting standards for logging companies are inadequate due to insufficient resources, corruption, or weak governance. This may lead to unreliable financial performance reporting. There is limited research on the application and the challenges of Indonesian FRS 69: Agriculture. Furthermore, limited research shows the role of financial reporting in government monitoring mechanisms. Therefore, further research is required to examine the implementation and the challenges of the Indonesian FRS 69: Agriculture, and the government monitoring mechanism in evaluating the financial performance of logging companies. The research attempts to present evidence in the current practice and the challenges of accounting for non-bearer plants, and the government monitoring mechanism related to financial performance evaluation. The research adopts qualitative methodology and acquires primary data from interviews with accounting officers of logging companies, external auditors, case company officers, and government officers. The research acquires secondary data from the professional guidelines, existing government regulations, and other various documents. Therefore, the findings of the research are a mix of the present professional guidelines and regulations, present practices, respective roles, and perceptions pertaining to the issues in the measurement, valuation, and reporting of non-bearer plants in Indonesia. Based on the research findings, it is concluded that five factors may have contributed to the deficiency in Indonesia forest management. First, awareness, capability, and enforcement of the government. Second, capability and compliance of the logging companies. Third, awareness and capability of investors. Fourth, the lack of guidance. Fifth, the lack of benchmarking practices. The research provides practical recommendations for the identified problems normatively. The research contributes to the theory by presenting a comprehensive study incorporating different perspectives from people representing important group of interests. The research contributes to the methodology by presenting rich information and evidence on the current practice and challenges encountered by logging companies in Indonesia. The research contributes to the practice by presenting current practice as a benchmark for logging companies while at the same time providing recommendations for improvements to the policy maker and financial reporting standard setting body in Indonesia.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Perwitasari, Widya
author_facet	Perwitasari, Widya
author_sort	Perwitasari, Widya
title	Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari
title_short	Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari
title_full	Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari
title_fullStr	Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari
title_full_unstemmed	Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari
title_sort	investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in indonesia / widya perwitasari
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Accounting Research Institute (ARI)
publishDate	2024
url	https://ir.uitm.edu.my/id/eprint/107091/1/107091.pdf
_version_	1818588204855459840
spelling	my-uitm-ir.1070912024-12-03T08:50:18Z Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari 2024 Perwitasari, Widya Investment, capital formation, speculation Government securities. Industrial securities. Venture capital The Global Risk Report 2023 reveals that the domination in global risks shifts from economic risks towards environmental risk. Indonesia is exposed to significant environmental risk partly due to its natural landscape. Indonesia has great concern in promoting a sustainable environment demonstrated by actively participating in global initiatives. Statistics indicates that Indonesia is exposed to significant forest resource exploitation and forest crimes. The Corruption Eradication Commission (CEC) in 2015 uncovered a significant amount of timber production is unreported due to allegedly illegal logging activities, indicating a significant amount of government revenue loss. Previous studies suggested that accounting is valuable in addressing forest crimes by promoting transparency, accuracy, and accountability in financial transactions related to forestry activities. However, previous studies show inconsistent accounting policies by forestry companies, which can lead to a lack of standardized reporting and comparability. The CEC in 2015 uncovered that monitoring and enforcement of regulations and financial reporting standards for logging companies are inadequate due to insufficient resources, corruption, or weak governance. This may lead to unreliable financial performance reporting. There is limited research on the application and the challenges of Indonesian FRS 69: Agriculture. Furthermore, limited research shows the role of financial reporting in government monitoring mechanisms. Therefore, further research is required to examine the implementation and the challenges of the Indonesian FRS 69: Agriculture, and the government monitoring mechanism in evaluating the financial performance of logging companies. The research attempts to present evidence in the current practice and the challenges of accounting for non-bearer plants, and the government monitoring mechanism related to financial performance evaluation. The research adopts qualitative methodology and acquires primary data from interviews with accounting officers of logging companies, external auditors, case company officers, and government officers. The research acquires secondary data from the professional guidelines, existing government regulations, and other various documents. Therefore, the findings of the research are a mix of the present professional guidelines and regulations, present practices, respective roles, and perceptions pertaining to the issues in the measurement, valuation, and reporting of non-bearer plants in Indonesia. Based on the research findings, it is concluded that five factors may have contributed to the deficiency in Indonesia forest management. First, awareness, capability, and enforcement of the government. Second, capability and compliance of the logging companies. Third, awareness and capability of investors. Fourth, the lack of guidance. Fifth, the lack of benchmarking practices. The research provides practical recommendations for the identified problems normatively. The research contributes to the theory by presenting a comprehensive study incorporating different perspectives from people representing important group of interests. The research contributes to the methodology by presenting rich information and evidence on the current practice and challenges encountered by logging companies in Indonesia. The research contributes to the practice by presenting current practice as a benchmark for logging companies while at the same time providing recommendations for improvements to the policy maker and financial reporting standard setting body in Indonesia. 2024 Thesis https://ir.uitm.edu.my/id/eprint/107091/ https://ir.uitm.edu.my/id/eprint/107091/1/107091.pdf text en public phd doctoral Universiti Teknologi MARA (UiTM) Accounting Research Institute (ARI) Mohamed, Norazida Mahmud, Radziah Mita, Aria Farah

Investigating discretionary management decision on accounting policy and government monitoring mechanism of non-bearer plant: the case of a stateowned logging company in Indonesia / Widya Perwitasari

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