ACCOUNTING TREATMENT FOR REVENUE CYCLE IN PEER TO PEER LENDING COMPANY

Abstract

This research wants to propose accounting treatment for revenue cycle in peer to peer lending by creating the journalization for peer to peer lending transaction. Indonesian new accounting standard, PSAK 72 doesn’t cover about the journalization for revenue from contract with customer in peer to peer lending company. The lack of the previous standard could cause several peer to peer lending company to treat their revenue incorrectly. This is qualitative research using data of foreign and Indonesian peer to peer lending. As a result, a new revenue account is made to represent the amount of fees that charged to the customer as transaction fees or servicing fees after the entity completes its performance obligation. This revenue recognition is using the concept of IFRS 15 Revenue from Contract with Customer. This research is limited only to journal entries for Indonesian peer to peer lending company’s transaction.