A comparison between PSAK 71 and PSAK 55 in the banking industry
Economic activities ascending from the use of PSAK 55 (Statement of Financial Accounting Standards) are alleged to be the cause of the Indonesian bank system instability when facing the global financial crisis in 2008. PSAK 55 results in CKPN (allowance for impairment losses) allocation on a procycl...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Kristen Satya Wacana
2021-04-01
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| Series: | Jurnal Ekonomi dan Bisnis |
| Subjects: | |
| Online Access: | https://ejournal.uksw.edu/jeb/article/view/4382 |
| _version_ | 1827788027741601792 |
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| author | Sunitha Devi I Gede Arya Wigarba Nyoman Trisna Herawati I Nyoman Putra Yasa |
| author_facet | Sunitha Devi I Gede Arya Wigarba Nyoman Trisna Herawati I Nyoman Putra Yasa |
| author_sort | Sunitha Devi |
| collection | DOAJ |
| description | Economic activities ascending from the use of PSAK 55 (Statement of Financial Accounting Standards) are alleged to be the cause of the Indonesian bank system instability when facing the global financial crisis in 2008. PSAK 55 results in CKPN (allowance for impairment losses) allocation on a procyclical nature. Therefore, it is expected that PSAK 71 implementation avoids procyclical CKPN that does not reflect sustainable financial performance. The current study is conducted to test the effectiveness of PSAK 71 implementation in hindering procyclical and credit crunch mitigation. The study’s population is the banking industry listed on the Indonesian Stock Exchange from 2008 to 2020. The data are then descriptively analyzed using descriptive analysis and the Wilcoxon Rank Test. The findings show that: 1) there is a significant difference in CKPN between PSAK 55 and PSAK 71 implementations, with no significant difference in the CAR and profit values, 2) there is no significant difference in the CKPN value applied based on PSAK 71 before and after entering the COVID-19 pandemic, and 3) there are significant differences in credit disbursement during the 2008 crisis and the 2020 crisis due to the COVID-19 pandemic. |
| first_indexed | 2024-03-11T17:01:15Z |
| format | Article |
| id | doaj.art-60d78f6024224974a3c640d22f53f7a5 |
| institution | Directory Open Access Journal |
| issn | 1979-6471 2528-0147 |
| language | English |
| last_indexed | 2024-03-11T17:01:15Z |
| publishDate | 2021-04-01 |
| publisher | Universitas Kristen Satya Wacana |
| record_format | Article |
| series | Jurnal Ekonomi dan Bisnis |
| spelling | doaj.art-60d78f6024224974a3c640d22f53f7a52023-10-20T08:40:18ZengUniversitas Kristen Satya WacanaJurnal Ekonomi dan Bisnis1979-64712528-01472021-04-0124117318810.24914/jeb.v24i1.43824681A comparison between PSAK 71 and PSAK 55 in the banking industrySunitha Devi0I Gede Arya Wigarba1Nyoman Trisna Herawati2I Nyoman Putra Yasa3Faculty of Eonomics, Universitas Pendidikan GaneshaFaculty of Eonomics, Universitas Pendidikan GaneshaFaculty of Eonomics, Universitas Pendidikan GaneshaFaculty of Eonomics, Universitas Pendidikan GaneshaEconomic activities ascending from the use of PSAK 55 (Statement of Financial Accounting Standards) are alleged to be the cause of the Indonesian bank system instability when facing the global financial crisis in 2008. PSAK 55 results in CKPN (allowance for impairment losses) allocation on a procyclical nature. Therefore, it is expected that PSAK 71 implementation avoids procyclical CKPN that does not reflect sustainable financial performance. The current study is conducted to test the effectiveness of PSAK 71 implementation in hindering procyclical and credit crunch mitigation. The study’s population is the banking industry listed on the Indonesian Stock Exchange from 2008 to 2020. The data are then descriptively analyzed using descriptive analysis and the Wilcoxon Rank Test. The findings show that: 1) there is a significant difference in CKPN between PSAK 55 and PSAK 71 implementations, with no significant difference in the CAR and profit values, 2) there is no significant difference in the CKPN value applied based on PSAK 71 before and after entering the COVID-19 pandemic, and 3) there are significant differences in credit disbursement during the 2008 crisis and the 2020 crisis due to the COVID-19 pandemic.https://ejournal.uksw.edu/jeb/article/view/4382psak 71ckpncredit crunch |
| spellingShingle | Sunitha Devi I Gede Arya Wigarba Nyoman Trisna Herawati I Nyoman Putra Yasa A comparison between PSAK 71 and PSAK 55 in the banking industry Jurnal Ekonomi dan Bisnis psak 71 ckpn credit crunch |
| title | A comparison between PSAK 71 and PSAK 55 in the banking industry |
| title_full | A comparison between PSAK 71 and PSAK 55 in the banking industry |
| title_fullStr | A comparison between PSAK 71 and PSAK 55 in the banking industry |
| title_full_unstemmed | A comparison between PSAK 71 and PSAK 55 in the banking industry |
| title_short | A comparison between PSAK 71 and PSAK 55 in the banking industry |
| title_sort | comparison between psak 71 and psak 55 in the banking industry |
| topic | psak 71 ckpn credit crunch |
| url | https://ejournal.uksw.edu/jeb/article/view/4382 |
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