THE IMPACT OF ACCOUNTING SYSTEM OF REPO ON FINANCIAL STATEMENT ACCURACY

Abstract

Repurchase agreement is a kind of financial thing that can bring up a company to have more financial support. This thing can become a good idea but without any detail and clear accounting regulation, it may bring the company’s financial performance decline or even bankrupt. Otoritas Jasa Keuangan (OJK), Indonesia financial regulator organization start to make repurchase agreement legal and official along with the regulation (POJK Number 9/POJK.04/2015 and GMRA Indonesia). The problem is, those regulations still not detail enough if we see from the accounting perspective. In addition, the characteristic of accounting record is different with accounting standard applied in Indonesia (PSAK that follows IFRS). Researcher aims to propose appropriate accounting regulation for repurchase agreement transaction in order to meet uniformity with other company and meet the PSAK characteristics. Exploratory method is used in this research. The researcher became non-participant observer in doing the observation. Hopefully the result will be considered by IAI (Ikatan Akuntan Indonesia).