Analisis Pengaruh Penerapan Fair Value Option Berdasarkan PSAK No.55 (Revisi 2006) Terhadap Volatilitas Earnings Pada Bank-Bank Di Indonesia Periode Q1 2010-Q2 2011
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Institusion
STIE Indonesia Banking School
Author
Yuliana, Indah
Subject
HF5601 Accounting
Datestamp
2024-07-22 04:24:23
Abstract :
Several parties argued that financial statements designed under an accounting model that measuring financial instruments at fair value would not fairly demonstrated a bank?s business model. Moreover, the existence of Fair Value Option (FVO) as the way out to designate fair value based on PSAK No. 55 (Revised 2006) is acknowledged inducing earnings volatility in banks where financial instruments are the largest portion on their financial statements This paper analyzes whether intention of reducing accounting mismatch associated with application of FVO and also FVO implementation towards financial liabilities induce different levels of earnings volatilityduring the time period from January 2010 until June 2011 using a sample of 68 banks. I find evidence that application of the FVO with the intention of reducing accounting mismatch significantly influences earnings volatility. Further, implementation of FVO towards financial liabilities significantly effects earnings volatility as well Overall, the findings suggest that the broadly disputes about FVO and its consequences on earnings volatility should be assessed based on the intention of the FVO application. Keywords: Fair Value Option, Earnings Volatility, Banks, PSAK No. 55 (Revised 2006)
Several parties argued that financial statements designed under an accounting model that measuring financial instruments at fair value would not fairly demonstrated a bank?s business model. Moreover, the existence of Fair Value Option (FVO) as the way out to designate fair value based on PSAK No. 55 (Revised 2006) is acknowledged inducing earnings volatility in banks where financial instruments are the largest portion on their financial statements This paper analyzes whether intention of reducing accounting mismatch associated with application of FVO and also FVO implementation towards financial liabilities induce different levels of earnings volatilityduring the time period from January 2010 until June 2011 using a sample of 68 banks. I find evidence that application of the FVO with the intention of reducing accounting mismatch significantly influences earnings volatility. Further, implementation of FVO towards financial liabilities significantly effects earnings volatility as well Overall, the findings suggest that the broadly disputes about FVO and its consequences on earnings volatility should be assessed based on the intention of the FVO application. Keywords: Fair Value Option, Earnings Volatility, Banks, PSAK No. 55 (Revised 2006)
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