The Implication of Misstatement to Retained Earning Based on SAK
DOI:
https://doi.org/10.18502/kss.v3i11.2855Abstract
This study examines the implications of misstatement to retained earnings based on Financial Accounting Standards (SAK). It takes manufacturing companies in Indonesia as case study. The study found several misstatements such as misstatements on receivables, taxes on prepaid rent, rent, depreciation, account payable, interest loan, and classification of loan. The results of the study found that the implications of misstatement is the decline in retained earnings by 26%. Misstatements that are not recorded will cause the financial statements to be unreliable. Accountants must update themselves to the development of SAK and the role of higher education is necessary to produce competent graduates who are able to identify and know the effects that will arise on the misstatement.
Keywords: misstatement, Financial Accounting Standards, retained earning
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