THE EFFECT OF IMPLEMENTATION PSAK 73 OF FINANCIAL PERFORMANCE ON PROPERTY AND REAL ESTATE INDUSTRIES BASED ON IDX 2017-2022

Abstract

Fixed assets are essential components of companies, although not all companies have the capability to purchase them. As an alternative, companies can lease these assets to reduce capital usage and depreciation costs. Regulations regarding leases, both operating leases and Financing leases, are governed by PSAK 73 on Leases, which became effective on January 1, 2020, replacing PSAK 30. Changes in lease regulations are believed to have an impact on companies' financial statements. Therefore, this study aims to analyze the impact of the adoption of PSAK 73 on the financial statements of property and real estate companies listed on the Indonesia Stock Exchange from 2017 to 2022. The financial performance of the companies' financial statements is proxied by financial ratios, including the current ratio, quick ratio, return on assets (ROA), and return on equity (ROE). The research findings indicate that the adoption of PSAK 73 on Leases has an impact on the financial performance of companies. The current ratio, ROA, and ROE increased after the adoption of PSAK 73 on Leases, while the quick ratio decreased. This indicates that companies experienced an increase in liquidity and financial performance after the adoption of PSAK 73 on Leases, but this was accompanied by a decrease in the company's ability to settle short-term liability using liquid assets.