ACCOUNTING TREATMENT OF FIXED ASSETS BASED ON PSAK NO. 16/2018 AT UNION METAL INDUSTRY MEDAN

Union Metalindo Jaya Medan is a company engaged in construction services for buildings, roads, parks, residential areas (real estate), and electrical installations or can also be declared a general contractor. To achieve the company’s goals that have been set, companies need various production factors to support and facilitate operational activities, namely fixed assets. This study aimed to determine whether the accounting treatment of fixed assets at Union Metalindo Jaya Medan followed the Statement of Financial Accounting Standards No. 16 of 2018. In writing this research, the nature of the research used is a case study. With this method, the facts regarding the accounting treatment policy for tangible fixed assets are obtained by observing and analyzing a research object problem that occurs in a research location on the existing suitability and then drawing conclusions from the problems studied. After conducting research, the authors concluded that the company in the accounting treatment of fixed assets is still not following PSAK No. 16 2018. Therefore, companies must consider many things in making policies on recording the acquisition price of fixed assets and expenditures after the acquisition of fixed assets. , Depreciation of fixed assets, as well as the presentation of fixed assets in the financial statements.


Introduction
Every company is founded indeed has one common goal: to gain profit for the company to prosper the Human Resources (HR). Goals are essential because they guide behavior and affect performance level (Ioniţă, 2013). Profit maximization or maximizing the company's market value is seen as the company's fundamental goals (Adamikova & Corejova, 2021). Nevertheless, the factors that influence a company's success in daily operational activities do not only come from one source. One of the most influential factors is the existence of assets in the company the bigger the company, the more assets the company have for the smooth operation of the company (Jannah & Diantimala, 2018). One of the assets that influence the company activities is fixed assets because the fixed assets owned by the company support the company in achieving the success of the company activities (Sitepu & Silalahi, 2019). However, in the procurement of fixed assets, companies must have careful planning because if not, careful planning can harm the company activities and affect the company.
Recognition of property, plant and equipment begins when the cost of property, plant and equipment has been recorded in the company records until the asset is written off (Firdaus, 2010). Assets also include natural resources, human resources, a network of relationships, education, expertise, technology, arts and culture, a good reputation, and public trust, among others (Dewi, Jannah, & Jumaryadi, 2018). Fixed assets can be obtained in several ways, such as through purchases (cash, credit or instalments), capital leases, exchanges (securities or other assets), equity participation, grants or gifts, and own development (Fahmi, 2012;Indonesia, 2009).
Financial accounting standards (PSAK) No. 16 regulates the treatment of property, plant and equipment, including recognition, acquisition cost, measurement of the acquisition cost, depreciation, and derecognition of property, plant and equipment (Hidayati, Rizal, & Taufiq, 2019). Statement of financial accounting standards is a standard or norm that is used to create financial statements for which the corporation is accountable to the public (Heykal & Siagian, 2014). Moreover, regardless of the importance of fixed assets and the amount of capital required to purchase fixed assets, good and correct accounting treatment for each fixed asset possessed by the company is required (Ruata, Tinangon, & Mawikere, 2018).
In Union Metal Industry, the fixed assets owned by the company are recorded in the table of the list of fixed assets with the total acquisition price and the total depreciation expense of all these fixed assets. There is no specific grouping of fixed assets owned by the company in the description above. The researcher is interested in conducting research by taking the title "Accounting Treatment of Fixed Assets based on PSAK No. 16 2018 on Union Metal Industry".

Research Location and Time
The research will be conducted within 3 (three) months, starting from April 1, 2014, to July 1, 2014. The research will be carried out at Union Metal Industry, which is engaged in constructing buildings, bridges, roads, parks, residential areas (Real Estate), installation of machinery installations, etc. This company is located at Jl. New Dompak Km. 8 Complex D'Green City Block A No.1-5 Tanjungpinang-Riau Islands.

Nature of Research
The nature of research is broadly divided into two types, namely: a. Case study method, namely researching a case intensively and indepth. b. The survey method (sample survey) researches part of the population or conducts tests on samples.
In this study, a case study will be used, namely by obtaining facts regarding accounting treatment policies for tangible fixed assets by observing and analyzing a research object problem that occurs in a research location on the existing suitability and then concluding the problems studied.

Data source
In preparing this research, secondary data will be used, namely data obtained from documents related to discussions from outside the company such as books or other references that support this writing.

Method of collecting data
To obtain the best possible information with the assumption that the goals in writing can be achieved, the authors will use the following research methods (Sugiyono, 2019): a. Observation, namely data collection by conducting direct observations at the location to obtain accurate data. b. Interview, namely data collection by asking questions directly to the leaders and employees of Union Metal Industry. c. Documentation, namely data collection by collecting company documents and company archives related to the issues to be discussed.

Data analysis method
After the necessary data is collected, the author will analyze the data using descriptive analysis with a qualitative approach to provide an overview of the application of accounting to fixed assets owned by the company and its presentation in the financial statements of the Union Metal Industry (Moleong, 2021).

Data Analysis Model
The model used in data analysis is as follows: a. The data taken is the 2013 financial report. b. Documents required are a Statement of Financial Position (Balance Sheet), Profit and Loss Statement, and a detailed list of Depreciation of fixed assets. c. The company's acounting policies regarding the accounting treatment of property, plant and equipment. Union Metal Industry is a company engaged in selling goods/services for building construction, roads, parks, construction of residential areas (real estate), installing electrical installations, or being declared a general contractor.

Research result
Based on the data obtained, the authors will try to analyze how the accounting treatment of fixed assets within the company, the accounting treatment includes:

a. Fixed Asset Recognition
The company recognizes Mitsubishi cars as fixed assets because these cars are included in the vehicle group. Besides that, Mitsubishi cars can also provide economic benefits in the future because they will be used as company operational vehicles to transport sand, stones, and other materials needed in construction.
Meanwhile, the Statement of Financial Accounting Standards No. 16 of 2018 states that the Cost of property, plant and equipment is recognized as an asset if and only if: 1) It is probable that the company obtain economic benefits from the asset in the future; and 2) The Cost of the asset can be measured reliably. To further clarify the analysis of the comparison of the recognition of fixed assets of Union Metal Industry with PSAK No. 16, we can see in the table below: Table 1 Economic benefuts based on PSAK number 16

PSAK Number 16
Union Metal Industry Appropriate / Not Appropriate a. The company will probably obtain future economic benefits from these fixed assets.
The company recognize Mitsubishi cars as fixed assets because these cars can provide economic benefits for the company naamely as operational vehicles in transporting sand, stones, and other materials.
Appropriate b. Cost can be measured reliably.
The company recognize Mitsubishi cars as fixed assets because to acquire these cars, the company incurs quite a lot of costs.

Appropriate
To obtain fixed assets in the form of Mitsubishi cars, the company incurs a reasonably high cost. In addition, the Mitsubishi car also has a useful life of more than one period. Thus, recognizing the assets purchased by the company fixed assets is following PSAK No. 16.

b. Determination of the Acquisition Price of Fixed Assets
The company requires fixed assets in two ways, namely by cash purchases and instalment purchases (Jusup, 2012). To get a Mitsubishi car, the company purchases in instalments through the bank.
On October 31, 2013, the company has an instalment purchase of 2 Mitsubishi cars as office operational vehicles used by the company to transport sand, stone, wood, and other materials for project construction The following is a breakdown of the costs for purchasing 1 unit of Mitsubishi Car: Price OTR 1 (one) Unit Mitsubishi FE 74 HDV 125 PS + Dump Rp 332.000.000,-(*Price includes 10% VAT + mail processing fee + dump truck) 30% down payment from IDR 332,000,000,-IDR 99,600,000 Bank fees consist of: *First Installment IDR 11,029,400,-* Rp 238.526.800,-Meanwhile, when the fixed assets are recognized, the company records the acquisition cost at the value stated on the tax invoice, which is Rp. 235,000,000-per unit. And the value of Rp. 235,000,000 -is included in the fixed-assets list as the acquisition price of 1 unit of Mitsubishi From the journal, it can be seen that the company recorded the acquisition cost of Mitsubishi's fixed assets, excluding the value of VAT, Mitsubishi dump trucks, and mail processing costs (Ismawati, 2013). The value of VAT listed on the tax invoice is IDR 47,000,000 by the company recorded as input VAT which will be credited at the end of the reporting month for the VAT Period SPT.
As for the costs related to the bank as the initial process in purchasing instalments, the company capitalized them with a 30% down payment which was issued by the company on October 28, 2013, with the details as stated above. At the time of payment of the advance, the company recorded in the journal: Cash proof no: 00-K28101302 28/10 (D) Uang Muka-DP 30% mitsubishi 2 units Rp 238.526.800,-(K) Kas-DP 30% Mitsubishi 2 units Rp 238.526.800,-Meanwhile, when the fixed assets are recognized, the company records the acquisition cost at the value stated on the tax invoice, which is Rp. 235,000,000-per unit. And the value of Rp. 235,000,000 -is included in the fixed-assets list as the acquisition price of 1 unit of Mitsubishi FE74HDV/R: MHMFE74P5DK105701. The company records it in the following journal: Bukti journal no: 00-cc011113 01/11 (D) Fixed assets-Mitsubishi FE74HDV Rp 235,000,000,- From the journal above, it can be seen that the company recorded the acquisition cost of Mitsubishi's fixed assets, excluding the value of VAT, Mitsubishi dump trucks, and mail processing costs. The value of VAT listed on the tax invoice is IDR 47,000,000 by the company recorded as input VAT which will be credited at the end of the reporting month for the VAT Period SPT.
As for the costs related to the bank as the initial process in purchasing instalments, the company capitalized them with a 30% down payment which was issued by the company on October 28, 2013, with the details as stated above.

c. Expenditure on Fixed Assets After Acquisition
The company classifies expenses after the acquisition of fixed assets into expenses because any expenditure on fixed assets after the acquisition of these fixed assets by the company is recorded as maintenance costs of fixed assets. These costs include periodic service fees, purchase of vehicle components, engine oil replacement and other costs deemed to maintain the useful life of a fixed asset. The com company never recorded expenses incurred on fixed assets into adding value to these fixed assets or recorded them as capital expenditures.
On November 27, 2013, the company add eight pieces per to the Mitsubishi lorry, the recording of the purchase per was recorded in the journal: Cash Proof no: 00-K27111305 27/11 (D) By fixed asset maintenance-BP9839&9840-Per 8 pieces Rp 1.800.000,-(K) Kas-By service BP9839&9840 Rp 1.800.000,-In this case, the com company complied with PSAK No. 16. Only when recording the costs incurred as fixed asset maintenance costs the company should estimate asset maintenance costs per group of fixed assets. For example, for the Cost of maintaining fixed assets on vehicles, an estimate of "vehicle asset maintenance costs" is made so that the company sees the costs incurred for certain fixed assets and can estimate the costs that will arise in the next period. In addition, companies can also find solutions so that the costs incurred are minimized by finding the source of why these costs often occur and are there a way to prevent these costs from appearing repeatedly.

d. Decreasing asset
Fixed assets used for office operational activities cannot always provide maximum benefits in their use. Therefore it is necessary to estimate the depreciation of fixed assets. With the systematic recording of Depreciation of fixed assets, the company finds out the remaining value of the benefits given to these fixed assets after being used for several periods. The company records depreciation of property, plant and equipment starting when the asset has an acquisition price, and the asset is also ready to be used in the companypany'serational activities. If an asset is not used at all within a certain period, the recording of the Depreciation of the fixed asset will still be carried out every month. The companypanycords the depreciation expense of fixed assets every month by recording the entire amount of depreciation expense on existing fixed assets. The depreciation method used by the company is the straight-line method.
The company records depreciation expense on fixed assets at the end of each month using the adjusting entries as follows: Journal evidence no: 00-AJP111302

30/11 (D) Depreciation cost-Nov'13
Rp 10,801,505,-(K) Accumulated depreciation-Nov'13 Rp 10,815,520,-Based on the list of fixed assets of Union Metal Industry above, it can be seen that the company recorded Depreciation on fixed assets did not follow PSAK No. 16. This is because PSAK No. 16 is required to classify the recording of depreciation expense on an asset according to a particular group.
Companies should keep records of fixed assets following their respective fixed asset groups. The Accumulated Depreciation of fixed assets can also be grouped based on their respective fixed asset groups.
More details on whether the Union Metal Industry in recording the Depreciation of fixed assets following PSAK No. 16 can be seen in the table below: has a high cost to the total cost of all assets must be depreciated separately.
The company did not separate the depreciation expense from each property group, plant and equipment.
Inappropriate b. Depreciation expense for each period is recognized in profit or loss.
The company records depreciation expense is in the income statement.
Appropriate c. The depreciable amount of an asset is allocated on a systematic basis over its useful life The company records depreciation expense on fixed assets until the asset's useful life expires and the asset's book value is zero.
Appropriate d. Depreciation methods include the straight-line method, the declining balance method, and the units of production method.
The depreciation method used by the company is the straight-line method.

Appropriate
Based on the comparison above, it means that the Union Metal Industry, in recording the depreciation expense of its fixed assets, is not following PSAK No. 16

e. Termination and Disposal of Fixed Assets
Fixed assets that are used and have been depreciated after their useful life has expired and have no book value are still included in the list of fixed assets but are no longer depreciated. The Cost of all fixed assets will still be considered as company inventory.
More details on whether the Union Metal Industry in derecognition of fixed assets following PSAK No. 16 can be seen in the table below: Table 4 Comparative of Derecognition of Fixed Assets by Union Metal Industry based on PSAK No. 16 The Union Metal Industry's fixed assets derecognition does not follow PSAK No. 16.

f. Presentation of Fixed Assets in Financial Statements
Fixed assets in the financial statements prepared by Union Metal Industry are presented by capitalizing all asset values contained in the list of fixed assets. There is no classification regarding a particular group of fixed assets in the financial statements. The company asumes that the list of fixed assets attached to the financial statements is sufficient to represent in detail the fixed assets owned by the com company is not following PSAK No. 16. This treatment is complicated for readers of financial statements because readers of financial statements do not know the number of fixed assets from certain groups and cannot see the depreciation value of fixed assets for each group of fixed assets.
Meanwhile, PSAK No. 16 requires a grouping in recording fixed assets and in accumulating Depreciation on these fixed assets so that the recording is presented as follows:

Conclusion
The following are some conclusions that can be drawn from research and discussion of the accounting treatment of property, plant and equipment based on the statement of financial accounting standards No. 16.
In terms of the recognition of an asset that is categorized as fixed assets, Union Metal Industry has complied with the Statement of Accounting Standards No. 16 because every purchase of assets that are included in fixed assets is an asset that can provide benefits to the company the companypany'serational activities that can increase income for the companypanyd at a cost that is considered quite material.
The company determining the acquisition price of a fixed asset does not follow PSAK No. 16, recording all values and costs associated with the property, plant, and equipment until the asset is ready for use.
The com company recorded expenses after the acquisition of fixed assets following PSAK No. 16, entering any expenditure on fixed assets after acquiring fixed assets into the Cost of maintaining fixed assets. These costs include costs that are considered to maintain the useful life of a fixed asset.
The recording of depreciation expense by the company is not following PSAK No. 16 because the company do not classify fixed assets according to particular groups, so the recording of depreciation expense is also carried out by combining all depreciation expenses into one estimate. This will also make it difficult for readers of financial statements to obtain information about the value of a group of fixed assets owned by the company.
In the retirement and disposal of property, plant and equipment, the com company does not comply with PSAK No. 16 because, according to PSAK No. 16, the carrying amount of property, plant and equipment is derecognized when it is disposed of or when no future economic benefits are expected from its use or disposal. At the same time, the company recognizes the carrying amount at Cost into the estimated fixed assets in the company's financial statements.
The presentation of property, plant and equipment in the financial statements is not following PSAK No. 16 because the records are not separated based on a particular group of fixed assets but are recorded by combining the entire value of fixed assets and depreciation expense on fixed assets in one fixed asset estimate. The presentation of Fixed Assets in the balance sheet is stated at book value, i.e. Cost less accumulated decreasing asset.

Reference
Appropriate b. Each type of asset, such as land, buildings, vehicles, office inventory and so on, must be stated in a separate or detailed balance sheet.
The company records the entire value in the fixed asset register made by the companypanyd does not detail the fixed asset group.
Inappropriate c. Depreciation is recognized in profit or loss The company records depreciation expense on fixed assets in the income statement.
Appropriate d. Accumulated Depreciation is recorded at the end of the period The company cumulates depreciation expense at the end of the period Appropriate