Science Target Conference Systems, Ajman 4th International Environment Conference 2016

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Risk of Environmental Performance Decrease After Revocation of Financial Accounting Standard No. 32 For Forestry Accounting In Indonesia
Lindrianasari Amsir Saidi

Last modified: 2016-01-10

Abstract


This research generally aims to provide empirical evidence that there is an influence on environmental liability after revocation Statement of Financial Accounting Standards (PSAK) 32 on forestry by 15 Indonesian companies in period 2007- 2013. The motivation of this study is to demonstrate the existence of a risk to a reduction in environmental responsibility after regulatory changes in environmental accounting in forestry companies. For developing countries, such as Indonesia, needed powerful rules to limit and protect the forest from destruction as a result the company's activities. This study also wanted to show the need for caution in assessing the environmental studies corporate responsibility. When the researchers measured the corporate responsibility solely on what companies disclose, without further research how much the allocation of funds they had acquired to manage and anticipate the destruction to the environment, it seems the research results generated will provide misleading information.

The results shows that there is no difference and increase on the level of environmental disclosure after the lifting of PSAK 32 on forestry companies in Indonesia, and there is a difference and a significant reduction in the environmental cost allocation forestry companies in Indonesia after revocation of PSAK 32, Accounting for Forestry. These findings confirm that environmental disclosure could be increased, but not accompanied by an increase in the allocation of environmental costs, so the researchers wanted to prove despite increased level of environmental disclosure, but not accompanied by the allocation of environmental costs decreased after the change in regulations in Indonesia.