SEMINAR AKUNTANSI

EARNING MANAGEMENT
 Our Topics Today...
• Agency Theory
• Type of Earning management
• Tehnique of Earning management : The Effects
and why people do this
• Example and another interesting topics in
Earning management
 Pop Quiz
What is the difference
between FFR and EM?
Which is ethically?
 
 Introduction
• Managers have better information about their firm’s current and
future performance than do external parties.
• The study show that managers have incentives to disclosure such
information voluntarily.
• Benefit of enhanced disclosure may include :
1. lower transaction costs in trading of the firm’s securities,
2. greater interest in the company by financial analysts & investors,
3. increased share liquidity, and
4. lower cost of capital

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  Voluntary disclosure level are increasing in both
highly developed and emerging market countries.
 But it’s widely recognized that financial reporting
can be imperfect mechanism for communicating
with outside investors WHEN manager’s incentives
are NOT perfectly aligned with the interest of all
shareholders.
 (Healy & Palepu, 1993) Argue for imperfect
communication :
1. Mgr have superior information
2. Mgr incentives are not perfectly aligned with
shareholders interest
3. Acc rules & auditing are imperfect
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 • Evidence strongly indicates that : corporate
managers often have strong incentives to
delay the disclosure of adverse news;
• Manage their FR to convey a more positive
image of the firm; and
• Overstate their firm’s financial
performance and prospects
• Contracting mechanism can reduce this
conflicts
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 Agency Theory
• Tujuan dilakukannya earnings management adalah
untuk memberikan fleksibilitas kepada manajemen
perusahaan untuk melindungi diri dan perusahaannya
dalam menghadapi keadaan yang tidak diinginkan
seperti kerugian bagi pihak-pihak yang terlibat dalam
kontrak dengan perusahaan. (Jensen dan
Meckling,1976) mengeluarkan agency theory dan
contracting theory yang menyebutkan bahwa
perusahaan adalah kumpulan kontrak atau nexus of
contract, sehingga manajemen cenderung melakukan
tindakan yang menguntungkan kepentingannya.
 Definisi EM
• Davidson, Stickney dan Neil (1987) : • Scott (2009) :
“Managing earnings is the process of “Earning management is the choice by
taking deliberate steps within the a manager of accounting policies, or
constraints of generally accepted actions affecting earnings, so as to
achieve some specific reported earnings
accounting principles to bring about
objective”.
a desired level of reported earnings.”
• Healy and Wahlen (1999) :
 
”Earnings management occurs when
• Schipper (1989) : managers use judgment in financial
”…purposeful intervention in the reporting and in the structuring
external financial reporting process transactions to alter financial reports to
with the intent of obtaining some either mislead some stakeholders about
private gain, as opposed to, say, the underlying economic performance of
the company, or to influence contractual
merely facilitating in the neutral
outcomes that depend on reported
operation of the process.”  accounting numbers.”
 MOTIVASI EARNINGS MANAGEMENT

 Bonus scheme motivations ( bonus

hypothesis)
 Debt covenant hypothesis
 Political atau size hypothesis
 Perpajakan (Taxation)
 Pergantian Management (CEO)
 Initial Public Offering (IPO)
 Regulatory motivations

Terbukti bahwa earning management

dilakukan karena adanya motivasi
Opportunistic dibandingkan motivasi efisiensi
 Earnings Management Model
• Healy Model (1985) ==> EM is a systematic model
• DeAngelo Model (1986) ==> based on last period
• Jones Model (1991) ==> simplify for nondiscretionary accrual
• Dechow & Sloan Model (1991)  Industry Model
• Modification Jones Model (1995) ==> ∆revenue compare with
∆AR
• Dechow & Dichev Model (2002) ==> focus on error estimation
• Kothari Model (2005)  ∆ROA as performance control
• Stubben Model (2010)  focus on revenue as manager
discretion
• New Approach Model by Dechow et. al (2011) ==> reversal
effect
• Akrual secara teknis merupakan selisih antara laba dan kas
• Akrual muncul karena adanya kebijakan/prinsip akuntansi
• Akrual diskresi (discretionary accrual) vs Akrual non
diskresi (non discretionary accrual).
• Akrual terikat dengan fenomena ekonomik
• Akrual non diskresi adalah bagian akrual yang variasinya
dapat dijelaskan oleh variasi fenomena ekonomik
perusahaan.
• Akrual diskresi adalah bagian akrual yang tidak dapat
dijelaskan oleh fenomen ekonomik perusahaan
 ADJUSTING ENTRIES

Adjusting entries
– required each time financial statements
are prepared

•Adjusting entries are classified as

• Prepayments (prepaid expenses and
unearned revenues) OR
• Accruals (accrued revenues and
accrued expenses)
 TYPES OF ADJUSTING ENTRIES

Accruals

• Accrued Revenues
revenues earned but not yet received in cash or
recorded
• Accrued Expenses
expenses incurred but not yet paid in cash or
recorded
• Contoh 1: Bila perusahaan XYZ memiliki piutang Rp. 20
Miliar dan cadangan kerugian piutang 10%. Berapa yang
harus dicadangkan? Bagaimana juga bila piutang
perusahaan saat ini menjadi naik/turun?

• Contoh 2 : Kasus Luscent Technologies. Pada TW-1 2002

perusahaan membuat cadangan kerugian piutang
sebesar $192 juta. Padahal periode yang sama tahun
2001 perusahaan mencadangkan sebesar $750 juta.
Kondisi perekonomian saat itu masih belum membaik
pasca kasus Enron. Apakah ini akrual diskresi atau non
diskresi
 The Effects of EARNINGS MANAGEMENT

1. Share-price effects
 Higher share prices
 Reduced share-price volatility
 Increased corporate valuation
 Lower cost of equity capital
 Increase value of stock options
2. Borrowing cost effects
 Improved credit rating
 Lower borrowing costs
 Less stringent financial covenants
3. Bonus plan effects
 Increased profit-based bonuses
4. Political cost effects
 Decreased regulations
 Avoidance of higher taxes
POLA DAN TEKNIK EARNINGS MANAGEMENT

3.1. Pola earnings management

 Taking a bath atau big bath
 Income minimization
 Income smoothing
 Cookie jar reserve
 Abuse materiality
 Revenue recognition

3.2. Teknik earnings management

 Menurut Center for Financial Research & Analysis (CFRA)
terdapat 30 teknik earning managements (shenanigans)
yang selanjutnya terbagi tujuh kategori

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Shenanigan No. 1 :
Recording Revenue Too Soon or of Questionable Quality

 Recording revenue when future services remain to be provided

 Recording revenue before shipment or before the customer’s
unconditional acceptance
 Recording revenue even though the customer is not obligated to pay
 Selling to an affiliated party
 Giving the customer something of value as a quid pro quo Grossing up
revenue

Shenanigan No. 2 :
Recording Bonus Revenue

 Recording sales that lack economic substance

 Recording cash received in lending transactions as revenue
 Recording investment income as revenue
 Recording as revenue supplier rebates tied to future re­quired purchases
 Releasing revenue that was improperly held back before a merger
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Shenanigan No. 3 :
Boosting Income with One-Time Gains

 Boosting profits by selling undervalued assets

 Including investment income or gains as part of revenue
 Reporting investment income or gains as a reduction in operating expenses
 Creating income by reclassification of balance sheet accounts

Shenanigan No. 4 :
Shifting Current Expenses to a Later or Earlier Period Boosting profits by
selling undervalued assets

 Capitalizing normal operating costs, particularly if recently changed from expensing

 Changing accounting policies and shifting current expenses to an earlier period
 Amortizing costs too slowly
 Failing to write down or write off impaired assets
 Reducing asset reserves

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Shenanigan No. 5 :
Failing to Record or improperly Reducing Liabilities

 Failing to record expenses and related liabilities when future obligations

remain
 Reducing liabilities by changing accounting assumptions
 Releasing questionable reserves into income
 Creating sham rebates
 Recording revenue when cash is received, even though future obligations
remain

Shenanigan No. 6 :
Shifting Current Revenue to a Later Period

 Creating reserves and releasing them into income in a later period

 Improperly holding back revenue just before an acquisition closes

Shenanigan No. 7 :
Shifting Future Expenses to the. Current Period as a Special Charge

 Improperly inflating amount included in a special charge

 Improperly writing off in-process R&D costs from an acquisition
Dari ketiga puluh teknik earnings management (shenanigans) tersebut
diatas pada dasarnya dapat juga dikategorikan menjadi lima fenomena
dasar (C Mulford and E Commiskey, 2002), yaitu
 Recognizing Premature or Fictitious Revenue
 Aggressive Capitalization and Extended Amortization Policies
 Misreported Assets and Liabilities
 Getting Creative with the Income Statement : Classification and
Disclosure
 Problem with Cash-flow Reporting

Penelitian akuntansi juga menunjukan bahwa earnings

management biasanya dilakukan pada kuartal 4 (Q 4) dalam
periode pelaporan (reporting period) dan biasanya dilakukan
bersamaan dengan restrukturisasi perusahaan. Para akuntan
harus lebih peka dan hati-hati dengan beberapa istilah dalam
bisnis yang terkait dengan huruf “R” seperti Retructuring,
Realign, Redeploy, Reconfigure, Resize, Right Size,
Rationalize, Reposition, Reingineer dan Reorganize.
 MOORE STEPHENS
Kasus-kasus yang terjadi di Indonesia

 Terdapat beberapa riset akuntansi yang dilakukan di pasar modal Indonesia

untuk membuktikan apakah terdapat praktek earnings management di pasar
modal Indonesia. Penelitian yang dilakukan oleh Gumati (2001) menunjukkan
bukti adanya upaya manajemen perusahaan untuk menaikkan tingkat
keuntungan pada periode dua tahun sebelum go public. Penelitian ini
menggunakan pendekatan total accrual terhadap 39 perusahaan yang
melakukan IPO antara tahun 1995 dan 1997. Selanjutnya penelitian Gumati
diperkuat dengan peneltian Saiful (2004) dan Feliana Yie Ke & Mochtar
Hendra yang melakukan tahun penelitian 1994 -2000.

 Dalam tahun 2000 – 2005, paling tidak terdapat beberapa skandal akuntansi
yang menjadi sorotan publik dan media masa yang terjadi di Indonesia antara
lain kasus Kimia Farma, Indofarma, Bank Global, Great River, dan PT.
Kereta Api Indonesia dan mungkin masih banyak lagi yang belum terungkap
di permukaan.

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EARNINGS MANAGEMENT GOOD OR BAD ?

Ringkasan penting hasil survey dapat dilihat dari kutipan berikut ini :

 Financial professionals are generally in agreement on when earnings

management crosses the line between the exercise of the legitimate
flexibility inherent in GAAP and abusive or fraudulent financial reporting.
However, a nontrivial subset of professionals appears to understate the
potential seriousness of certain earnings management actions.

 Financial professionals agree that earnings management is common, that it

has increased over the past decade, and that the SEC campaign against
abusive earnings management is necessary.

 The major objectives of earnings management are to reduce earnings

volatility, sup­port or increase stock prices, increase earnings-based
compensation, and meet consensus earnings forecasts of analysts.
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 MOORE STEPHENS

 The major categories of earnings-management action in order of frequency, are the

timing of expense recognition, big bath and cookie jar reserves, the timing of revenue
recognition, and real actions. While not in conflict with GAAP, real actions still could be
used to produce misleading results.

Trend analysis (analytical review), analysis of high-likelihood conditions and

circumstances, footnote review, days statistics, and the proximity of actual to estimated
results are the most frequently mentioned earnings-management detection techniques.
Earnings management is viewed as more likely to be harmful than helpful.

Harmful earnings management effects are seen to include the distortion of financial
performance, inflation of share prices, and potential damage to firm performance.
Possible helpful effects from earnings management include a reduction in earnings
volatility and share-price volatility, the potential for management to signal its private
information, and helping to meet forecasts and rationalize expectations.

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 MOORE STEPHENS
TANGGUNG JAWAB MANAJEMEN DAN AKUNTAN PUBLIK DALAM
MENDETEKSI ADANYA EARNINGS MANAGEMENT ATAU FINANCIAL FRAUD

 Earning management yang bersifat abbusive dapat dikategorikan merupakan

tindakan kecurangan (fraudulent) dan dapat diklasifkasikan sebagai tindak
pidana, yang berakibat akan dikenakan sanksi pidana. Manajemen perusahaan
yang melakukan kecurangan dalam penyusunan Laporan Keuangan
perusahaan dapat dikenakan sanksi pidana ex Pasal 263 KUHP (pemalsuan surat)
atau Pasal 378 KUHP (penipuan). Selanjutnya, perusahaan yang melakukan
kecurangan dalam penyusunan Laporan Keuangan perusahaan dan memberikan
“clean opinion” (misalnya wajar tanpa pengecualian, wajar dengan “emphasis
paragraph” dsb.) dapat dikenakan sanksi pidana ex Pasal 263 ayat (2) KUHP
(memakai surat palsu dalam melakukan pemeriksaan), pasal 55 (melakukan atau
menyuruh melakukan atau turut serta melakukan perbuatan), Pasal 56 dan 57
KUHP (membantu kejahatan).

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 TANGGUNG JAWAB MANAJEMEN DAN AKUNTAN PUBLIK
MOORE DALAM
STEPHENS
MENDETEKSI ADANYA EARNINGS MANAGEMENT ATAU FINANCIAL
FRAUD

Dasar pandangan universal menyatakan

bahwa manajemen perusahaan
mempunyai tanggung jawab utama untuk :
 Menyajikan laporan keuangan secara benar, sesuai
dengan standar akuntansi keuangan (GAAP) yang
diterapkan secara taat asas;
 Memberikan keterangan yang benar kepada auditor
(dilarang melakukan misrepresentasi) ;
 Menciptakan lingkungan pengendalian intern yang handal
untuk mengurangi terjadinya kecurangan, dan memberikan
peringatan dini apabila kecurangan masih juga terjadi.

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Tanpa landasan pemikiran universal mengenai tanggung
jawab manajemen sebagaimana disebutkan diatas, maka

 Tidak ada satu auditorpun di dunia yang

dapat melaksanakan fungsi auditnya.
 Tidak ada satu bursa efek di dunia yang
dapat berjalan sebagaimana mestinya.
 Tidak ada satupun badan pengawas
(Bapepam, SEC, OJK, FSA, dsb) dapat
menjalankan pengawasan.

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