Analisa Age Accounts Receivable Accounts Receivable Losses To Determine The Fair Presenting Financial Reports In Son PT.Thong JayaSentosa In Surabaya
CHAPTER I 1.1. Problem Background
With the development of the growing business world, the more complex are the problems facing the company An established company rather than just looking for a profit, but also to expand the company The larger a company, it will be more and more also face the problem that needs to be analyzed and later made a right decision and wise।In an effort to increase the volume of sales to consumers, companies can conduct the sale in cash and on credit. In cash sales is felt difficult, so most companies sell their products on credit. Consumers generally prefer if the company can make sales on credit, for which payment may be delayed. Credit sales will have consequences in the future payments, and will create a property company in terms of receivables. With the advent of receivables will bring risks to the company, if the receivables are not collectible or incurred by the debtor does not repay its debts on time.However, most companies pay less attention to the risks arising from credit sales made that possible losses if the debtor does
not pay its bills. The uncertainty of payment by the debtor's accounts receivable results in the morbidity of the value of receivables in the financial statements presented by the company, if accounts receivable are presented too
great and profits there is also too large, due to limited financial losses due to limited financial losses and the allowance for doubtful accounts for the absence of charge offs of accounts receivable receivables that have expired. At the time of credit given to the debtor in large quantities, should be evaluated once the prospective buyer who
will buy on credit. Evaluation of potential buyers include income, credit history in the past (if any) and other factors, to determine whether the loan application can be granted or not. Usually the credit when in large numbers only on a bona fide parties.To anticipate the things mentioned above, we need a control that can secure the assets of companies and can provide assurance that the policies applied are correct and not hurt. System of internal control is a
tool for management to evaluate and control the course of a company. Beside that, to maintain the viability of the company and maintain corporate assets, especially accounts receivable, it is necessary to the examination of
accounting, so the company can determine if accounts receivable are presented in the financial statements was fair or not fair.Based on the description above, in this case I will discuss some issues about how to present a reasonable financial report accompanied by a company's accounts receivable aging analysis. Thus the authors discuss the issue took the title "Age Analysis Accounts Receivable Losses To Determine The Fair Presenting Financial Reports In Son In PT.Thong Jayasentosa in Surabaya".
1.2. Problem formulation
Based on the background is set out in sub-section above, the problems facing the company can be formulated is
as follows:"How big is the aging analysis of accounts receivable to determine the losses in the financial statements fairly present the Son PT.Thong Jayasentosa in Surabaya".
1.3. Research Objectives Goals to be achieved from this research are:
A. To find out how big the accounts receivable aging analysis of accounts receivable to determine the losses in the financial statements fairly present the Son PT.Thong Jayasentosa?
2. To obtain a net value of accounts receivable are reported in the financial balance sheet, so that the resulting
financial statements are the financial statements in accordance with reasonable and generally acceptable accounting principles.
1.4. Benefits of Research
Benefits that can be donated from the results of this study are:
1.4.1. For Science
Adding libraries in the accounting area, which hopefully will be able to use a reference to the other studies to research from the side or the other perspective.
1.4.2. For Decision MakersThe decision makers can use research results as consideration for companies in the implementation of accounting audits of receivables that would be obtained either a reasonable financial statements.
1.4.3. For ResearchersFor the researcher's own thesis writing is useful as an application or the application of science that has been gained during the lecture, in particular giving a clear picture in determining the loss of receivables. It inin expand their horizons and provisions for future research.
CHAPTER II REVIEW REFERENCES
2.1. Examination of Accounting
2.1.1.Understanding Accounting Investigation
In the life of the business (business)auditing plays a very important, even the government and other private parties
view auditing as a useful thing. Auditing is a part of which deals with accounting principles, procedures and methods of how to obtain audit evidence of the various materials in order to provide a statement of opinion regarding the
appropriateness of the financial statements are assertions of management with established criteria.
Understanding of auditing according to Alvin. A. Arens and James Loebeckke (2006:4): "The accumulation and evaluation of evidence about information to determine and report on the degree of correspondence Between the information and Establish. Auditing should be done by competent, independent person.
"Understanding of auditing Sukrisno Agoes (2006:3): "An inspection conducted critically and systematically, by an independent party, to the financial statements have been prepared by management, as well as accounting records and supporting evidence, in order to be able to provide opinion about the fairness of those statements. "Understanding of auditing by Mulyadi (2009:9): "Auditing is a process sistemetis to obtain and evaluate evidence
objectively on the allegations about the activities and economic events, in order to establish the suitability of these statements with a predetermined criteria and delivering results to the user concerned.
"From the definition above, the examination of accounting (auditing) have statements or concepts as
follows:
a. Auditing is a systematic process. Systematic process related to an activity or activities which form the steps or prosedir purposeful, planned, structured and organized.
b. Gather and evaluate evidence objectively.
Activity or activities carried out is a process to obtain material evidence as the basis for stating audit opinion statement. Activity of collecting and evaluating the evidence audit conducted by the auditor, must be based on objectivity. Objective relates to the ability of auditors in expressing the facts as they are, no prejudice and swordfish siding.
c. Assertions-assertions about economic actions and events.Means a statement assertions related to economic events as a result of the accounting information prepared by management of an entity. Assertions can be financial statements prepared by management based on generally accepted accounting standards and other financial information.
d. Determine the degree of correspondence between the assertions by the criteria.In order to express an
opinion or the auditor's opinion can be interpreted uniformly by the user, it is used criteria that have been agreed upon. Established criteria will vary depending on the object of an audit conducted. To audit the financial statements
are used as criteria are generally accepted accounting principles (GAAP).
e.Delivering the results.The results of the audit are communicated through written reports of audit reports. In the audit of historical reports conducted by the Office of Public Accountants, the report of independent auditors' report.
f.Users are concerned.Interested users are decision makers who use the information as contained in audit reports. The users include management, investors and potential investors, shareholders, government, creditors.
2.1.2. Type or types of Audit
According to Kell and Boynton, credit generally classified into three categories:
a. Financial Statement Audit (Audit)
Audit of financial statements includes the collection and evaluation of evidence about an entity's financial statements in order to give an opinion (opinion), whether the financial
statements are presented fairly in accordance with generally accepted accounting principles (GAAP).
b. Compliance Audit (Compliance Audit)
Compliance audit includes collecting and evaluating evidence in order to determine whether certain operational and financial activities of an entity in accordance with the conditions, rules, and deregulation that have been determined.
c. Operational Audit (Audit Operations)
Operational audit involves gathering and evaluating evidence regarding the operational activities of the organization or entity in relation to achievement of the objectives of efficiency and effectiveness.
Operational audit objectives are:
─ Assess achievement
─ Identify opportunities for improvement
─ Make recommendations for the development and improvement
2.1.3 Differences Accounting and Auditing
Actually between the accounting and auditing have a pretty fundamental difference. Examination of accounting (auditing) is not a branch of accounting and not a continuation of accounting, but its existence can neither be separated from each other.
Differences in accounting and auditing are:
─ Accounting is the process of recording, classification and presentation of financial transactions peringkasan is then presented in the form of financial statements used as a basis for economic decision making.
─ Auditing (accounting examination) is an examination conducted in an objective for the company's financial statements for the purpose of determining whether such financial statements present fairly the financial condition and results of operations of the company.
So the examination of accounting (auditing) is not a continuation of accounting, because accounting investigation is not aimed at creating new information but rather is intended to enhance the credibility of a company's financial statements.
2.2. Receivables
2.2.1. Definition of Receivables
Sales of goods or services is a source of company revenue. In setting the sales to consumers, the company would have preferred if the sales transaction can be immediately used again to bring in next.In reality, the credit sales at most companies are usually much larger than cash sales. Sales of receivables or loans raises the bill. Accounts receivable is a future income earned within one cycle the company's activities, transactions involving at least two parties, namely: A. Creditors, is the party that sells goods or services and obtain receivables.Debtor, the party who made a purchase and make the debt.
Definition according to Zaki Baridwan receivables (2004: 124), accounts receivable indicates receivables arising from the sale of goods or services produced by a company in which the normal state of the company, usually accounts receivable will be repaid within a period of less than one year
Understanding receivable by Kieso (2007: 318) Receivable are claims held against customers and others for money, goods or services.Usually the bill is not made in a special agreement as provided by laws of force, thus giving the
possibility to be traded. Thus ensured the possibility of repayment.
2.2.2. Types of Receivables
In practice or in the presentation of the balance sheet, accounts receivable divided into two, namely:
a. Accounts receivable
Are receivables arising from sales of goods or services in the normal activities of companies
and are strongly associated with major operating companies. Generally, accounts receivable from one year old, so the balance sheet assets are included in the post lancer.
b. Non-trade receivables (other receivables)
Are receivables arising from sales of goods or services in the enterprise, such as non-trade receivables
categorized as long-term receivables, but if any part of that is due in less than one year are reported as assets lancer.In the balance sheet, accounts receivable after the asset is put before the lancer and fixed assets.
Receivables under SFAS No.9 (1994: 4), namely:
A. According to the sources, accounts receivable are classified into two categories:
o Accounts receivable
Include receivables arising from sales of products or rendering services within the framework of normal business activities of the company.
o Other receivables
1.Receivables arising from transactions outside the ordinary course of business enterprises
2. Receivables are strengthened by a process called a promissory note.
3. Accounts receivable, notes receivable and other receivables should be presented separately with a clear identification.
4. Receivables are stated at gross invoice amount less the estimated amount that can not be billed.
The gross amount of receivables on the balance sheet should continue to be presented followed by the provision for doubtful receivables, or the estimated amount that can not be billed.
5. Individual credit balances if the amount of material to be presented in the liabilities.
6. Amount of receivables as collateral must be disclosed in the notes to financial statements.
7. Contingent liabilities in connection with the sale of receivables with an agreement to repurchase (sale of accounts receivable / notes discounted with recourse receiveble) to a financial institution should be explained sufficiently.
2.2.3. Advantages and Disadvantages of Receivable
By providing accounts receivable at the time of the sale means the company does not receive money directly from the
sale of goods or services, but will be accepted later on.Implementation of credit sales that give rise to receivables is what can give advantages and disadvantages. Advantages of accounts receivable is:
a. The Company has increased sales results.
b. Can increase its profit.
c. Can win the competition.
Besides the benefits mentioned above, the company also bears the risk of loss which may arise sometimes cause business failure. Losses that may arise such as:
a. The risk of not getting paid all receivables.
b. The risk is partially paid receivables.
c. The risk of delay in paying off accounts receivable.
d. The risk embedded in the capital accounts.
Of the four risks above, the most serious risks for the company is wholly or partially unpaid receivables. Because this is a loss that can inhibit the activity of the company. If there is a risk of delay in payment of accounts receivable to pay off, this will only cause delays in the obligations of corporate money to be paid immediately, especially if capital is
invested in capital loan receivables. Thus the company always tried to keep the risks that may arise in the presence of these receivables, can be minimized so as not to cause congestion or loss of the company.
2.2.4. On Internal Control Accounts Receivable
Internal control is the actions of the companies with the aim to secure and protect company assets from loss due to corporate mistakes either intentional or unintentional, caused by waste and fraud.For a small company, it may be easier in a leader to supervise subordinates. But if the company gradually developed into a large company, it is difficult for a leader to supervise work of subordinates. Thus the need for a control system can work automatically so that everything that happens in the company can control.An internal control system is not intended to exclude all possibility of error or fraud malainkan to suppress the possibility of error or fraud within the limits
of decent, these restrictions are:
a. Conspiracy
With the existence of the conspiracy, the system of internal control that how good is of no use because of the existence of the conspiracy, each activity there is a segregation of duties within the company's plans and procedures are meaningless. In the system of internal control required to avoid the conspiracy as far as possible.
b.Cost
Internal control system not only has benefits in the control, but also must consider the cost and usefulness. The cost to control certain things may be beyond their usefulness.
c. Humand.
d.System of internal control is either not guarantee to avoid being broken because the executor is the man who has shortcomings.Factor determining the reliability of corporate financial statements is a good internal control structure. Therefore, before carrying out an examination of financial data company, an auditor must understand the company's
internal control structure. Existing internal control greatly affects the time and extent of examination procedures. The better the existing internal control, the more extensive sdikit examination to be conducted.In general, the
relationship between the extent of inspection and control system can be formulated as follows:
"The better the system of internal control, the more narrow the tests or fewer samples are selected, and vice versa weaker internal control systems, many examples are chosen."
While the Accounting Association of Indonesia (2003:47) with the standard auditingnya the second field work standard states that: "an adequate understanding of the internal control structure must be obtained to plan the audit and determine the nature, timing and scope of testing to be done."Internal control systems of the receivable can be done as follows:
A. Calculating the amount of risk borne by the company for loans, by way of reserve accounts receivable losses in each period.
2. Determine the minimum credit limit is very important for companies to prevent any risk of the company
suffered from too large to give credit, the debtor was not fulfilling its obligations properly.
3. Determining the credit period is the determination of the credit period to be granted, the debtor is not intended that it wants only to pay debts, as well as of the credit period given the company would know where
credit is due and what is not. If at maturity the debtor still has not paid, then the company can take the policy further.
4. providing penalties for borrowers who pay late.
To obtain a robust system of internal control over receivables, by Theodore M. Tuanakotta (1982:96) must meet the following requirements:
A. Functions performed by employees who handle the sales transaction must be separated from the bookkeeping function.
2. Receipt of the bills receivable functions should be separated from accounts receivable bookkeeping functions.
3. All credit transactions, administration cuts and the elimination of accounts receivable must be approved by certain officials.
4. Receivables should be recorded in the books of additional receivables.
Additional copies of this total balance must be matched with a big book in question, at least once a month sent a letter putang statement.
5. The list of accounts receivable by age
2.2.5. Credit Policy
There are so many things to consider in efforts to prevent and reduce the risk of giving accounts. In
addition to preventive efforts in the control, audit risk management techniques as well.One way to reduce credit risk is the company should be able to get a person or corporate entities (companies) are really honest and bona fide. But in practice it is not easy to do. However, by using a particular method selected will be better. One technique that can be used in selecting the company's prospects, which is a technique known as "5C" are:
A. Character (Character)
Related to the possibility of trying to fulfill subscription obligations. This factor is crucial because every loan transaction contains a promise to pay.
2. Capacity (ability)
Describes a subjective assessment of the ability of customers to pay accounts in the past coupled with the physical
observations of the factory or shop and business methods.
3. Capital (Equity)
Measured by the company's financial position in general as ditujukkan by financial ratio analysis, with special emphasis on the net value of the tangible business.
4. Collateral (Collateral)
Provided with a record of property on the customer as the promise of security loans.
5. Condition (state)
Linked to the impact of general economic trends on the company or related to specific developments in the field of economics that could affect the ability of customers to meet their obligations.
2.2.6. Assessment Receivables
In conjunction with the accounts, the Accounting Principles Indonesia books mentioned:
Accounts receivable are stated at gross invoice amount less the estimated amount that can not be accepted. It means to report the amount of receivables in the balance sheet will be invoiced amount is calculated by subtracting the estimated amount that will not be billed for the amount of receivables.If it is clear that receivables are uncollectible receivables then the removal done if there has been clear evidence that such bankrupt or debtor dies. All this is intended only to report the amount of receivables expected to be acceptable.
2.3. Registration Recognition and Accounts Receivable Losses
There are two ways to recognize the loss of receivables follows:
A. Direct Elimination Methods
Registration of new accounts receivable losses made when an account is actually declared uncollectible by the company anymore and there is clear evidence that such debtors fled, died, which led to bankruptcy should be the removal of accounts receivable. Elimination of receivables is a loss, recording a loss charged to the accounts receivable. At the end of the period there are no estimated losses are charged to accounts receivable losses but only recognized at the time known to exist that can not be billed receivables. For example there removal of a
debtor's accounts receivable, the journal as follows:
Receivable losses of Rp.xxxx
Receivables Rp. Xxxx
Sometimes the accounts that have been deleted can be paid back. Receipt of receivables that have been deleted will be credited to the account receivable as follows:
Cash Rp. xxxx
Receivables Rp. Xxxx
When the settlement of accounts receivable that have been deleted are not immediately accepted, then it is known that the receivables at the time would be paid back journal entries to record accounts receivable that have been deleted as follows:
Receivables Rp. xxxx
Receivable losses of Rp. xxxx
Receipt of the money journalized as follows:
Cash Rp. xxxx
Receivables Rp. Xxxx
2. Backup Methods
At each end of the period held that an assessment of the amount receivable is not collectible roughly and then charged to the period. Recording to make adjusting entries at the end of the accounting period are:
Receivable losses of Rp. xxxx
Loss reserves Receivable Rp. xxxx
The method accounts receivable reserves, each end of the assessment period the amount of loss carried receivables that will be charged to the period. There are two basis used to determine amounts receivable losses, namely:
1) The number of sales
If the losses associated with receivables that income measurement process under study, the calculation of the
loss of accounts receivable is the amount of sales (income approach - cost)
2)The balance of Accounts Receivable
If the receivables are used as the basis for calculating the loss of accounts receivable, then the direction is investigated
to assess the assets (asset approach - debt).Loss calculation on the basis of accounts receivable can be done by the end of the period of three ways:
A. Amount of reserves is raised to a certain percentage of the outstanding amounts.In this way the balance of receivables multiplied by a certain percentage, the result is a loss reserve account balance piutang.yang desired. To calculate the amount of the loss of receivables, the calculation was reduced or increased by the loss reserve accounts receivable balances. Judging from the reserve income statement, this method can not show how actual losses for that period, because the calculation is influenced by the calculation of loss reserves prior year receivables.
2. Reserves coupled with a certain percentage of the outstanding amounts. In this way the product of the percentage loss accounts receivable balance is the amount recorded as receivables and losses are credited to accounts receivable reserves without regard to the loss reserve accounts receivable balances. This method can link loss accounts receivable balances that period without being affected by the calculation of the loss reserve accounts the previous year, but viewed from the balance sheet, this method can not indicate the amount of receivables expected to be collected. Besides the use in this way will result in the imposition of double damages if the accounts receivable at the end of the period still exist receivables last year before the year is calculated loss account. This drawback can be eliminated if the percentage of accounts receivable losses multiplied only to accounts receivable arising in the period. 3. Amount of reserves is increased to an amount calculated by analyzing accounts receivable. This method is called the method of aging analysis of receivables. Subscriptions receivable each divided into two groups, ie not in arrears and arrears. The meaning is already overdue for a period exceeding the credit. Delinquent accounts receivable that are split in groups based on the length of time menunggaknya. Furthermore, from each of the delinquent amount that is based on the length of time specified percentage of delinquent accounts receivable losses. Amount receivable losses calculated in this manner after considering the balance of accounts receivable is the amount of the loss reserve accounts receivable losses. As an example of making aging analysis of receivables:
The aging of accounts receivable
At December 31,19xx
Separation of accounts receivable in each age group made of existing data in the accounts receivable ledger. Once the accounts of each subscription can be grouped by age, then the next step is determining the percentage loss accounts
for each age group. The calculation of the loss of accounts receivable for each age group done by a percentage determined by looking at the ability of the return of each subscription is structured as follows:
Provision for Accounts Receivable Losses
At December 31, 19xx
Journal to record the loss of accounts receivable and accounts receivable reserves, namely:
Receivable losses of Rp.xxxx
Loss reserves Receivable Rp. xxxx
Accounts receivable aging analysis method can indicate the amount of receivables that will be billed in accordance with the circumstances. Amount of receivables reported on the balance sheet will be more close to reality, because the accounts receivable aging analysis method performed an assessment for each of the debtor so that it more closely.
2.4.Financial Reports The Fair
According to Zaki Baridwan (2004: 17) "financial statement is a summary of the recording process, a summary of financial transactions that occurred during the year concerned. Financial statements prepared by management in order to account for the tasks assigned to it by the owner of the company, in addition to the financial statements can also be used to meet objectives other purposes, namely as a report to the parties outside the company. "According to Abdul Halim, the auditing fair words have meaning:
A. Free from doubts (free from bias and dishonesty)Bias-free means that the financial statements are reasonable is a report that is free from doubt
2. Complete information (full disclouser)Detailed information bias means that the financial statements are reasonable should be supported with complete information.In addition, the financial statements present fairly, teaching is considered the financial position and results of operations of an organization, in accordance
with accounting principles generally acceptable if it meets the conditions are:
A. Generally acceptable accounting principles used to prepare financial statements.
2. Changes in accounting principles generally acceptable from period to period have been quite clear.
3. Information in the records that support has been illustrated and described with enough in the financial statements.
2.5.Importance of Inspection Guide For Accounts Receivable Accounting
Conducted an audit of accounts receivable objectives, namely:
To check whether there is a pretty good internal controls over accounts receivable.
A. To check whether the method of valuation of accounts receivable in accordance with Financial Accounting Standard.
2. To check whether the accounts listed on the balance sheet really exists and is the right of the company at balance sheet date.
3. To check whether the system of recording accounts receivable in accordance with generally acceptable accounting principles.The importance of accounting receivable:
A. The existence of provisions to determine the accuracy of the benchmarking assessment revenue receivable by the relevant fee periodically.
2. The existence of provisions determining net income (net income) on a periodic basis as determined by the calculation of accounts receivable provision accounts receivable losses and expenses.
2.6. Inspection Testing In Accounting
According to Mulyadi, the examination carried out various tests (test) which can be broadly divided into three categories, namely:
A. Analytical Testing
Testing is done by studying the relationship between the data comparison and the one with the other data. This
test is intended to assist in keeping the client's business and find areas that require more intensive examination.
2. Testing Compliance (Compliance Test)
This test was primarily intended to get information about the frequency of the implementation of control procedures have been defined, the implementation of quality control procedures, and employees who carry out these control
procedures.
3. Substantive testing
This test was designed to find possible errors that directly affect the rupiah testing obligations of financial statements.Of
2.7. Examination procedures Receivables
Stages of the examination procedure starts from a detailed examination of the nature. Various audit procedures
carried out in five phases:
A. Initial audit procedures
Auditors perform the initial procedure with the reconciliation between the information listed in the accounts receivable balance in the accounting records that support it so that the auditor obtain reasonable assurance that the accounts receivable are included in the balance sheet supported by a reliable accounting.
2. Analytical procedures
Intended to assist the auditor in understanding the client's business and find areas that need more incentive audit. To that end, the auditors did some calculations with different ratio, namely:
Ratio
─ asset accounts by lancer
─Rate of return on net sales
─ loss ratio of accounts receivable to sales revenue
─loss ratio with the accounts receivable that is not really collectible.
3. Detailed testing of transactions
Constraints of the balance of accounts receivable is determined by the occurrence of the following transactions are debited and credited into the accounts receivable.Transaction details include:
─credit sales transactions
─ Transactions sales return
─ elimination of accounts receivable transactions
─ Transactions of the accounts receivable cash receipts
4.Detailed examination of the account balance
Detailed examination of the account balance in the revenue cycle focused on the balance of accounts receivable and
accounts valuation (loss reserve accounts receivable)
5. Verification of the presentation and disclosure of
To verify the testing and disclosure of receivables in the financial statements, the auditor perform several steps such as:
─ Comparing the presentation with the presentation of accounts receivable according to accounting principles generally acceptable.
─ Check the classification of receivables into groups of current assets and current assets.
REFERENCES
Agoes, Sukrisno, Auditing (Accountant's Examination) By Certified Public Accountants,Volume One, LPEE-UI, Jakarta, 2006, p. 3.
Arens, Alvin A. and James K. Loebbecke, Auditing and Assurance:an Integrated Approach, Eleventh Edition, Person Education, Inc., New Jersey, 2006, p. 4.
Baridwan Zaki,Intermediate Accounting, Edition 8, BPFE UGM Yogyakarta,2004.hal.17, 124.
Donalde.Kieso, Intermediate Accounting, Volume 2, grants, Jakarta, 2007,case 318.Indonesia Institute of Accountants, the Financial Accounting Standards, first edition,Four publishers Salemba, Jakarta, 2003, p 47.
Association Indonesia Accounting, Financial Accounting Standards, 1994.(Http://www.bloggerborneo.com/softcopy-psak)Mulyadi, Auditing, Matter-6, Salemba Four, Jakarta, 2009, p. 9.
Soemarso, An Introduction to Accounting, Salemba Four, Jakarta, 2005, p. 346.
Theodore M. Tuanakotta, Auditing, Third Edition, Publisher of FacultyEkonomiUniversitas Indonesia, Jakarta, 1982,
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