Treatment of Fixed Assets Based on Psak No. 16 qt the Makassar City Drinking Water Company (PDAM): JEL Classification: M41, M48, H83, L95, M40

Dessy Fitriani; Aryanti Inayah; Jumriani Jumriani

doi:10.37899/mjdm.v3i3.394

Authors

Dessy Fitriani Field of Interest In Financial Accounting Accounting Study Program Sekolah Tinggi Ilmu Ekonomi Indonesia Makassar, Indonesia
Aryanti Inayah Field of Interest In Financial Accounting Accounting Study Program Sekolah Tinggi Ilmu Ekonomi Indonesia Makassar, Indonesia
Jumriani Field of Interest In Financial Accounting Accounting Study Program Sekolah Tinggi Ilmu Ekonomi Indonesia Makassar, Indonesia

DOI:

https://doi.org/10.37899/mjdm.v3i3.394

Abstract

This study aims to identify and analyze the accounting treatment of fixed assets at Perumda Air Minum (PDAM) Makassar City in accordance with the statement of Financial Accounting Standards (PSAK) No. 16 cocerning Fixed Assets. The research focuses on five key aspects: recognition, measurement, depreciation, derecognition, and presentation of fixed assets. This study uses a qualitative descriptive method whit data collected through documentation, interviews, and literature review. The results indicate that their accounting treatment of fixed assets at PDAM Makassar City is generally in accordance with PSAK No.16. fixed assets are recognized when future economic benefits are probable and the acquisition cost. Followed by the cost model for subsequent measurements. Depreciation is applied using the straight-line and double-declining balance method. Depends on the asset type and useful life. The derecognition of assets is supported by appropriate documentation and the presentation of fixed assets in the financial statement is accommodated by adequate disclosure in the notes to the financial statement.

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