CHAPTER I

ACCOUNTANCY

1.1

The Historical Of Accountancy

The earliest accountancy records were found amongst the ruins of
ancient Babylon, Assyria and Sumeria, which date back more than 7,000
years. The people of that time relied on primitive accountancy methods to
record the growth of crops and herds. Because there is a natural season to
farming and herding, it is easy to count and determine if a surplus had
been gained after the crops had been harvested or the young animals
weaned. accountancy tokens made of clay, from Susa, Uruk period, circa
3500 BCE. Department of Oriental Antiquities, Louvre.
The invention of a form of bookkeeping using clay tokens
represented a huge cognitive leap for mankind. Globular token envelope
with a cluster of accountancy tokens. Clay, Susa, Uruk period (4000 to
3100 BCE). Department of Oriental Antiquities, Louvre. Economic tablet
with numeric signs. Proto-Elamite script in clay, Susa, Uruk period (3200
BC to 2700 BCE). Department of Oriental Antiquities, Louvre.
a. Accountancy in the Roman Empire
Part of the Res Gestae Divi Augusti from the Monumentum
Ancyranum (Temple of Augustus and Rome) at Ancyra, built
between 25 BCE - 20 BCE.

The Res Gestae Divi Augusti (Latin: "The Deeds of the

Divine Augustus") is a remarkable account to the Roman people of
the Emperor Augustus' stewardship. It listed and quantified his
public expenditure, which encompassed distributions to the people,
grants of land or money to army veterans, subsidies to the aerarium
(treasury),

building

of

temples,

religious

offerings,

and

expenditures on theatrical shows and gladiatorial games. It was not

an account of state revenue and expenditure, but was designed to
demonstrate Augustus' munificence. The significance of the Res
Gestae Divi Augusti from an accountancy perspective lies in the
fact that it illustrates that the executive authority had access to
detailed financial information, covering a period of some forty
years, which was still retrievable after the event. The scope of the
accountancy information at the emperor's disposal suggests that its
purpose encompassed planning and decision-making.
The Roman historians Suetonius and Cassius Dio record
that in 23 BC, Augustus prepared a rationarium (account) which
listed public revenues, the amounts of cash in the aerarium
(treasury), in the provincial fisci (tax officials), and in the hands of
the publicani (public contractors); and that it included the names of
the freedmen and slaves from whom a detailed account could be
obtained. The closeness of this information to the executive
authority of the emperor is attested by Tacitus' statement that it was
written out by Augustus himself.

Roman writing tablet from the Vindolanda Roman fort of

Hadrian's Wall, in Northumberland (1st-2nd century AD)
requesting money to buy 5,000 measures of cereal used for
brewing beer. Department of Prehistory and Europe, British
Museum.
Records of cash, commodities, and transactions were kept
scrupulously by military personnel of the Roman army. An account
of small cash sums received over a few days at the fort of
Vindolanda circa 110 CE shows that the fort could compute
revenues in cash on a daily basis, perhaps from sales of surplus
supplies or goods manufactured in the camp, items dispensed to
slaves such as cervesa (beer) and clavi caligares (nails for boots),
as well as commodities bought by individual soldiers. The basic
needs of the fort were met by a mixture of direct production,
purchase and requisition; in one letter, a request for money to buy
5,000 modii (measures) of braces (a cereal used in brewing) shows
that the fort bought provisions for a considerable number of
people.
The Heroninos Archive is the name given to a huge
collection of papyrus documents, mostly letters, but also including
a fair number of accounts, which come from Roman Egypt in 3rd
century CE. The bulk of the documents relate to the running of a
large, private estate is named after Heroninos because he was
phrontistes (Koine Greek: manager) of the estate which had a

complex and standarised system of accountancy which was

followed by all its local farm managers. Each administrator on
each sub-division of the estate drew up his own little accounts, for
the day-to-day running of the estate, payment of the workforce,
production of crops, the sale of produce, the use of animals, and
general expenditure on the staff. This information was then
summarized as pieces of papyrus scroll into one big yearly account
for each particular subdivision of the estate. Entries were
arranged by sector, with cash expenses and gains extrapolated from
all the different sectors. Accounts of this kind gave the owner the
opportunity to take better economic decisions because the
information was purposefully selected and arranged.
Simple accountancy is mentioned in the Christian Bible
(New Testament) in the Book of Matthew, in the Parable of the
Talents.
b. Islamic Accountancy and Algebra
The Islamic law of inheritance (Sura 4, ayah 11) defines
exactly how the estate is calculated after death of an individual.
The power of testamentary disposition is basically limited to onethird of the net estate (i.e. the assets remaining after the payment of
funeral expenses and debts), providing for every member of the
family by allotting fixed shares not only to wives and children, but
also to fathers and mothers. The complexity of this law served as
an impetus behind the development of algebra (Arabic: al-jabr) by

the Persian mathematician Muhammad ibn Ms al-Khwrizm

and other medieval Islamic mathematicians. Khwrizm's "The
Compendious Book on Calculation by Completion and Balancing"
(Arabic: Hisab al-jabr wal-muqabala, Baghdad, c. 825) devoted a
chapter on the solution to the Islamic law of inheritance using
linear equations. In the 12th century, Latin translations of alKhwrizm's "Book of Addition and Subtraction According to the
Hindu Calculation" (Arabic:Kitb al-Jam wa-l-tafrq bi-h isb alHind) on the use of Indian numerals, introduced the decimal
positional number system to the Western world. The development
of mathematics and accountancy was intertwined during the
Renaissance. Mathematics was in the midst of a period of
significant development in the late 15th century. Hindu-Arabic
numerals and algebra were introduced to Europe from Arab
mathematics at the end of the 10th century by the Benedictine
monk Gerbert of Aurillac, but it was only after Leonardo Pisano
(also known as Fibonacci) put commercial arithmetic, HinduArabic numerals, and the rules of algebra together in his Liber
Abaci in 1202 that Hindu-Arabic numerals became widely used in
Italy.
c. Luca Pacioli and Double Entry Book Keeping
Bartering was the dominant practice for traveling
merchants during the Middle Ages. When medieval Europe moved
to a monetary economy in the 13th century, sedentary merchants

depended on bookkeeping to oversee multiple simultaneous

transactions financed by bank loans. One important breakthrough
took place around that time: the introduction of double-entry
bookkeeping, which is defined as any bookkeeping system in
which there was a debit and credit entry for each transaction, or for
which the majority of transactions were intended to be of this form.
The historical origin of the use of the words debit and credit in
accountancy goes back to the days of single-entry bookkeeping in
which the chief objective was to keep track of amounts owed by
customers (debtors) and amounts owed to creditors. Debit, is
Latin for he owes and credit Latin for he trusts.
The earliest extant evidence of full

double-entry

bookkeeping is the Farolfi ledger of 1299-1300. Giovanno Farolfi

& Company were a firm of Florentine merchants whose head
office was in Nmes who also acted as moneylenders to the
Archbishop of Arles, their most important customer. The oldest
discovered record of a complete double-entry system is the Messari
(Italian: Treasurer's) accounts of the city of Genoa in 1340. The
Messari accounts contain debits and credits journalised in a
bilateral form, and contains balances carried forward from the
preceding year, and therefore enjoy general recognition as a
double-entry system.
Portrait of Luca Pacioli, attributed to Jacopo de' Barbari,
1495, (Museo di Capodimonte).

Luca Pacioli's "Summa de Arithmetica, Geometria,

Proportioni et Proportionalit" (Latin: "Review of Arithmetic,
Geometry, Ratio and Proportion") was first printed and published
in Venice in 1494. It included a 27-page treatise on bookkeeping,
"Particularis de Computis et Scripturis" (Latin: "Details of
Calculation and Recording"). It was written primarily for, and sold
mainly to, merchants who used the book as a reference text, as a
source of pleasure from the mathematical puzzles it contained, and
to aid the education of their sons. It represents the first known
printed treatise on bookkeeping; and it is widely believed to be the
forerunner

of

modern

bookkeeping

practice.

In

Summa

Arithmetica, Pacioli introduced symbols for plus and minus for the
first time in a printed book, symbols that became standard notation
in Italian Renaissance mathematics. Summa Arithmetica was also
the first known book printed in Italy to contain algebra.
Although Luca Pacioli did not invent double-entry
bookkeeping, his 27-page treatise on bookkeeping contained the
first known published work on that topic, and is said to have laid
the foundation for double-entry bookkeeping as it is practiced
today. Even though Pacioli's treatise exhibits almost no originality,
it is generally considered as an important work, mainly because of
its wide circulation, it was written in the vernacular Italian
language, and it was a printed book.

According to Pacioli, accountancy is an ad hoc ordering

system devised by the merchant. Its regular use provides the
merchant with continued information about his business, and
allows him to evaluate how things are going and to act accordingly.
Pacioli recommends the Venetian method of double-entry
bookkeeping above all others. Three major books of account are at
the direct basis of this system: the memoriale (Italian:
memorandum), the giornale (Journal), and the quaderno (ledger).
The ledger is considered as the central one and is accompanied by
an alphabetical index.
Pacioli's treatise gave instructions in how to record barter
transactions and transactions in a variety of currencies both being
far more commonplace than they are today. It also enabled
merchants to audit their own books and to ensure that the entries in
the accountancy records made by their bookkeepers complied with
the method he described. Without such a system, all merchants
who did not maintain their own records were at greater risk of theft
by their employees and agents: it is not by accident that the first
and last items described in his treatise concern maintenance of an
accurate inventory.
The nature of double-entry can be grasped by recognizing
that this system of bookkeeping did not simply record the things
merchants traded so that they could keep track of assets or
calculate profits and losses; instead as a system of writing, double-

entry produced effects that exceeded transcription and calculation.

One of its social effects was to proclaim the honesty of merchants
as a group; one of its epistemological effects was to make its
formal precision based on a rule bound system of arithmetic seem
to guarantee the accuracy of the details it recorded. Even though
the information recorded in the books of account was not
necessarily accurate, the combination of the double entry system's
precision and the normalizing effect that precision tended to create,
produced the impression that books of account were not only
precise, but accurate as well. Instead of gaining prestige from
numbers, double entry bookkeeping helped confer cultural
authority on numbers.
Double entry accountancy means that each transaction
requires the use of at least two accounts.
d. Accountancy In The Internet Era
In the IETF RFCs the act of accountancy is usually defined
as the act of collecting information on resource usage for the
purpose of trend analysis, auditing, billing, or cost allocation.
For example when a user uses a connectivity service paid
with a pay-per-view approach the accountancy process is based on
a metering of the resource usage by the user (usually time spent
with an active connection or the amount of data transferred using
that connection). The accountancy is hence the recording of this
connectivity service consumption for subsequent charging of the
service itself.

e.

Accountancy Scandals
The year 2001 witnessed a series of financial information
frauds involving Enron Corporation, auditing firm Arthur
Andersen, the telecommunications company WorldCom, Qwest
and Sunbeam, among other well-known corporations. These
problems highlighted the need to review the effectiveness of
accountancy

standards,

auditing

regulations

and

corporate

governance principles. In some cases, management manipulated

the figures shown in financial reports to indicate a better economic
performance. In others, tax and regulatory incentives encouraged
over-leveraging of companies and decisions to bear extraordinary
and unjustified risk.
The Enron scandal deeply influenced the development of
new regulations to improve the reliability of financial reporting,
and increased public awareness about the importance of having
accountancy standards that show the financial reality of companies
and the objectivity and independence of auditing firms.
In addition to being the largest bankruptcy reorganization in
American history, the Enron scandal undoubtedly is the biggest
audit failure. It involved a financial scandal of Enron Corporation
and their auditors Arthur Andersen, which was revealed in late
2001. The scandal caused the dissolution of Arthur Andersen,
which at the time was one of the five largest accountancy firms in
the world. After a series of revelations involving irregular

10

accountancy procedures conducted throughout the 1990s, Enron

filed for Chapter 11 bankruptcy protection in December 2001.
One consequence of these events was the passage of
SarbanesOxley Act in 2002, as a result of the first admissions of
fraudulent behavior made by Enron. The act significantly raises
criminal penalties for securities fraud, for destroying, altering or
fabricating records in federal investigations or any scheme or
attempt to defraud shareholders.
Another example of corporate fraud was the case of
Australian telecommunications company One-tel. The financial
manager, Jodee Rich was subsequently charged with fraud and
spent several years in jail after fraudulently stating the companies
financial position, to encourage investment by some of Australia's
richest people including James Packer and Lachlan Murdoch.
When it collapsed in 2001, One-tel lost its shareholders in excess
of 920 million dollars.
1.2

The Definition Of Accountancy

Accountancy is a process identification, measure, and to deliver
information economist to possible production to considers and taking over
decision that clear and certain by to wear information. Accountancy aims
to prepare accurate financial statement to be used by managers or others
interested parties, such as shareholders, creditors, or owners. Accountancy
is also known as the laguage of business because it is a means to convey
financial information to interested parties who need it. Better we

11

understand in managing our finances, to convey this information it is used

accountancy report or also know as the financial report.
From the perspective user, accountancy defined as a discipline that
provides information such as financial reporting required by the interested
parties concerned about the economic activities and conditional of the
company. In this sense, accountancy is a service activity that serves to
provide quantitative information of economic entities (enterprises),
espesially a financial nature inteded useful in making economic decision
and determining the choice among a series of alternative measures that
exist.
AICPA (American Institute of Certified Public Accountans) in
1941, defined accountancy as: "The art of record, classify and summarize
transactions and events finances are in a certain way and in the form of
units of money, and interpreting the results. "From this definition there are
three important aspects, namely:
1. Accountancy is a process, the process of recording, classifying
transaction.
2. Accountancy for processing financial transactions in a way that has
pattern (not any or disheveled) and using unit money as a measuring
device.
3. Accountancy is not just a process of recording, classifying and
summarizing, but includes also the interpretation of the results of
prosesproses them.
Another definition stated by the Accountancy Principles Board
(APB) in 1970: " Accountancy is a service activity. The function provides

12

information quantitative economic institutions, particularly for finance,

which aims to be useful in decision-making economical."
Definition according to the American Accountancy Association in
1966, is as the following: "The process of identifying, measuring and
communicating economic information to obtain the proper consideration
and decision by the user pertinent information. " This definition contains
1.

two terms:
Accountancy activities, that accountancy is a process that consists of

2.

identification, measurement and reporting of economic information.

Usefulness of accountancy, the economic information produced by the
accountancy is expected to be useful in the assessment and decision
making the entity concerned.
And the other is the definition according to George A. Mac
Farland: " Accountancy is an art of recording, classifying, presenting, and

1.

systematic interpretation of financial data or individual."

This definition can be drawn from the understanding that:
The procedures used in accountancy are recorded, classify, present and

2.

interpret.
The goal of accountancy is financial data or events that are

3.

financially.
Procedure notes,
must

be

classifying,

systematically

and

arranged,

presenting
so

it

can

financial
be

used

data
to

interpret and analyze the statements made.

While from the standpoint of activities, accountrancy is the process

classifying, summarizing, analyzing and reporting financial data of a
companys organization. Accountancy required by the various interested as

13

consideration for the economic decision-making both internal and external

parties conducting the activity of accountancy.
Deep as a estimate financial that happened long ago one period in
process deep class activity as to join :
a. Recording
Activity recorded financial transactions that occur in the document.
b. Classifying
Classification or clustering activities of corporate finance transactions
in the general ledger.
c. Summarizing
Financial transactions that have been classified on general ledger into
the balance sheet.
d. Reporting
Prepare financial statements:
a. Income statement
b. Owner capital statement
c. Balance sheet
d. Cash flow statement
1.3

The Principals Of Accountancy

Guidelines and procedures for recording public policies that benefit
all stakeholders. Accountancy principles in each country are not always
the same. Indonesian Accountancy Principles was first published in 1973,
was amended in 1984. Now Indonesia is no longer using the term
Indonesian Accountancy Principles, but of Financial Accountancy
Standards. Accountancy principles has two objectives:
1. General purpose, consisting of:
a. Provide reliable financial information about the assets, liabilities
and equity.

14

b. Provide reliable information about changes in net assets (net assets

of liabilities) of a company arising from the business makes a
profit.
c. Providing financial information to users of financial statements, so
as to estimate a company's ability to generate earnings.
d. Provide important information about changes in assets such as
information about the assets, financing, and investment.
e. Revealing the extent possible other information relating to the
financial statements that are relevant to the needs of users reports.

2. Qualitatif purpose
a. Relevant
b. Understandable
c. Can be verified
d. Neutral
e. Timely
f. Can be compared
g. Complete
1.4

The Kind Of Accountancy

1. Public Accountancy
Public accountants work for firms that provide various
accountancy services to corporations and individuals. They perform a
variety of tasks which include auditing, tax preparation, and
consulting. Moving up in the field almost always requires passing the
CPA exam and getting certified, after which public accountants can
open their own firms, move on to different types of accountancy, or
move up the corporate ladder in larger firms.
The career path for a public accountant in a large firm is fairly
predictable. Often, newly employed accountants will spend the first

15

year or so doing fairly menial work and getting adjusted to the office.
After that, he or she can move up to become a senior accountant. If the
promotions continue, a public accountant can hope to become a highlevel manager or even partner in the firm.
Public accountants who decide to open their own firms will have
to run a business and build an independent client base. But the
advantage of running your own firm is the flexibility and independence
to set your own hours and work from home.
A special area of public accountancy is forensic accountancy,
which investigates potential fraud and illegal financial activities.
Forensic accountants often work with law enforcement officials and
present their findings in court. With new government crackdowns on
public accountancy firms, these special accountants are becoming
increasingly in-demand.
2. Government Accountancy
A new accountant may choose to work for the local, state or
federal government, often for the Internal Revenue Service (IRS). A
government accountant maintains financial records for government
agencies or audits private businesses or individuals who are subject to
government regulations and taxation. Accountants in government
progress in their careers much in the same way as accountants in
private firms do, though their pay is slightly lower.
3. Internal Accountancy
Internal accountants keep their own company's financial records
accurate and in order. They evaluate their company's efficiency to
make sure that all of the numbers add up. Internal accountancy is

16

becoming increasingly important since the passing of the SarbanesOxley Act in 2002, which requires the chief executive and financial
officers of accountancy firms to sign off on and take responsibility for
their firm's business. With this increased pressure and accountability,
firms are hiring more internal accountants to ensure against
malfeasance. Internal accountants can also become certified as CIAs,
or Certified Internal Accountants. The requirements for this
certification are very similar to those for becoming a CPA. A bachelor's
degree, successful completion of a four-part exam, and experience are
required for both. Accountants may have multiple certifications and
designations, especially if they switch between the four different types
of accountancy throughout their careers.
4. Management Accountancy
Management accountants work internally for the company that
employs them, recording and analyzing financial information. What
differentiates them from internal accountants is that they are involved
in budgeting, managing costs, and evaluating the company's efficiency.
Management accountants often start their careers as internal auditors
and work their way up to full-fledged management accountants. The
process to become a Certified Management Accountant is similar to
those of a CPA or CIA and involves taking a four-part exam.

1.5

The Part Of Accountancy

Accountancy has several parts, among others :

17

1. Financial Accountancy
Accountancy is primarily related to financial and recording company
devoted primarily to the companys external parties such as investors,
creditors, goverment, customers, suppliers and communities.
2. Management Accountancy
Accountancy is a field that includes of financial accountancy and
financial data estimasian useful for managers to run the company day
by day operation of the plan for the future operation of the company.
3. Cost Accountancy
Is part the management accountancy related to recording and reporting
of corporate costs, cost accountancy is useful for management to plan
and control company expenses.
4. Taxation
Accountancy is a field related to the planning of the calculation,
recording and reporting of tax which becomes an obligations for
companies to be paid to the goverment under taxation act applies.
5. Examination of Financial Statement
Accountancy is a field related to the examination of the reasonables of
financial recording and reporting are complied and published by
corporate management.
6. Budgeting
Accountancy is a field association with the preparation of detailed plan
to achieve the targets set by the company such as sales, expenses,
assets and profits.
7. Design of Information Systems
Accountancy is a field that includes the identification of information
needs for internal and external interest that will help the management
to supervise and control the course of company operations.
8. Internal Inspection

18

Accountancy is a field inspection activities related to the efficiency

and effectiveness of company operations to ensure that employees anf
the parts of the company has implemented procedures and
management planing.
9. Goverment or Public Sector Accountancy
Accountancy is a field relating to recording and reporting of
goverment finance in the organization that provide public services.
10. Management Consulting
Ia a service that can be provided by accountans other than those related
to accountancy such os organizational structure, the analysis of
economic data and so forth.

1.6

The Utility Of Accountancy

1. Intern parties
Parties that are directly related to the daily operation of the company,
ie the company leadership. Its function is to take the policy.
2. External parties
Parties interested in the company but not related directly or indirectly
involved in making policy decisions and operations, namely:
a. The company owner / holder of the company / investor
b. Employees and unions
c. Creditors
d. Government agencies
e. Customer
f. Community

1.7

The Ethics of Accountancy

The standards set in the attitude of practical, realistic and idealistic
for members of the profession. Code of Conduct prepared by the
Indonesian Institute of Accountants profession, including:
1. Responsibility

19

An accountant should be responsible for the common good. Must

fulfill the general quality, thus providing a good service to the public.
2. Integrity
An accountant should carry out their duties with full honesty to
maintain public confidence.
3. Objective
An accountant can reveal the data as it is.
4. Independent
An accountant should be free from the influence, not on others control
and not depend on others.
5. Must have dignity and thoroughness in carrying out their duties.
6. In deciding the provision of services should be specific and should
consider other professional ethics.

20

CHAPTER II
FIXED ASSETS

2.1 The Definition Of Fixed Assets

Fixed assets are assets that have useful lives of more than one year
of the company, are used in the operations of the company and not for
resale.
Some understanding of fixed assets, according to some experts :

a.

Understanding Fixed Assets by Wikipedia :

Fixed asset in accountancy for intangible assets that are
held for use in the production or supply of goods or
services, for leased to others, or for administrative purposes,
and are expected to be used during more than one period.
Examples of fixed assets include: property, building,
factory, production equipment, machinery, motor vehicles,
furniture, office supplies, computers, and others.

b. Understanding Fixed Assets by Haryono Yusuf in his book

"Fundamentals of Financial Accountancy", that "fixed
assets are tangible assets used in the operation of the
company and are not intended for sale in the ordinary
course of the company's normal." (2001:153)

c.

Understanding Fixed Assets by Baridwan Zaki (2000; 22) :

"Fixed Assets are assets that can be used over a period, such
as land, buildings, machinery and equipment, furniture,
vehicles, and others."
21

d. Understanding Fixed Assets by Slamet Sugiri (2009; 137)

Fixed assets are tangible assets that:

1. Held for use in the production or supply goods or

services, for leased to others, or for administrative
purposes.

2. Expected to be used during more than one period.

e. Understanding Fixed Assets by Abdul Halim and Bambang
Supomo (2001:154) fixed assets is "fixed assets are assets
owned and used to operate and have a useful life in the
future more than one budget period, and are not intended

f.

for sale."
Understanding Fixed Assets By Arthur J Keown and has
been translated by D. Chaerul Djakman, in his book
"Fundamentals of Financial Management" (2001:82):
permanent or long-term assets (fixed or Long-term assets)
consist of equipment, buildings, land.

g. Understanding Fixed Assets According to IAS 16 (2004:

16.1) states that, "The fixed assets are tangible fixed assets
acquired in the form of ready-made or to be built first used
in the company's operations and more useful life of one
year."

h. Understanding Fixed Assets According to IAI with SFAS 16

(2004:16.2) suggested understanding the assets as follows,
"The tangible fixed assets are assets acquired in the form of

22

ready-made to be built first, which is used in the operation

of the company are not intended to be sold in order normal
activities of the company and have a useful life of more
than one year. "
i. Understanding Fixed Assets By Jerry J. Weygandt
(2007:566) are in charge translated by Ali Akbar Yulianto,
Wasilah, and Rangga Handika, said understanding the assets
as follows: "The fixed assets (plant assets) is a resource that
has three characteristics, it has a physical form, used in the
operations, and not for sale to consumers."
j. Understanding Fixed Assets According to Warren, Reeve
and Fess (2006:504) are in charge translated by Aria
farahmita, Amanugrahani and Taufik Hendrawan, said
understanding the assets as follows: "fixed assets (fixed
assets) are long-term assets or the assets of a relatively
permanent ."
k. Understanding Fixed Assets In H. Greuning in his book
"International Financial Reporting Standards: Practical
Guidelines" translated by Edward Tanujaya, explained that:
"The fixed assets are tangible assets held for use in the
production or supply of goods or services, such as rental to
others or for administrative purposes and were expected to

l.

be used during more than one period. " (2005; 170)

Understanding Fixed Assets by Wit & Erhans (2000: 82):
The fixed assets are intangible assets yan aged more than

23

one year that is owned by the company in order to be used

within the company and not for resale.
m. Understanding Fixed Assets by Soemarso SR in his book
An Introduction to Accountancy, states that: "Tangible
Fixed Assets (Tangible Fixed Assets) is intangible assets
useful life of more than one year, are used in the activities
of the company, owned not for resale in the normal course

n.

of the company, and the value is quite large. "(2005:20)

Understanding Fixed Assets by Mulyadi (2001; 591) in his
accountancy system, that "fixed assets is the wealth owned
company that has a form, have the economic benefit of
more than one year, and in the acquired company to carry
out the activities of the company, not to on sale again,
because it has a wealth of forms, often called the fixed

o.

assets in tangible fixed assets (tangible fixed assets). "

Understanding Fixed Assets by Horngren & Harison (1997:
502) is: "Assets that can be used in the long term and

p.

provide the physical form of the usefulness of the assets."

Understanding Fixed Assets by Hendi Somantri (2000:121)
"called plant assets or fixed assets are tangible assets held
for use in the business activities of the company, and have a

q.

useful life of more than one year".

Understanding Fixed Assets According to John J. Wild in
his book "Financial Statement Analysis", translated by S.
Yanivi "The fixed assets are not current tangible assets used

24

in the manufacture, sale or service to generate revenue and

cash flow for more than one period." (2005; 304)
2.2 The Characteristics Of Fixed Assets
Characteristics of fixed assets are :
1. Used for operations, meaning that the assets held for use not for resale.
2. Not a long-term investment
3. Have useful lives of more than one year, the company used over
several accountancy periods.
4. Have considerable material value.
2.3 The Kinds Of Fixed Assets
In general, assets are divided into two major groups, namely:
1. Tangible Fixed Assets, fixed assets are physically able to be used in
operations. Included are:
a. Assets that are subject to depreciation.
b. Assets that are subject to depletion. A reduction in the value of
natural resources where the land is used as an object or a certain
raw materials is reduced. niali natural resources such as gold
mines, coal mines, iron ore mines, kerosene mines, etc.
c. Assets not experienced depreciation and depletion.
2. Intangible Fixed Assets, fixed assets of a long age and provide
operational benefits to the company, but does not have a physical form.
Included are:
a. Patents, exclusive right granted by the government through the
directorate patents to individuals or entity to exploit a particular
invention. Include the cost of research, trial costs, development
costs, registration fees, etc.
b. Copy right, sole right granted to an individual or entity to
reproduce or sell goods or artwork intellectual work.
c. Branded goods. exclusive rights granted to peroeangan or an
enterprise to use a stamp, name, symbol effort.

25

d. Franchise. sole rights derived by an enterprise from other

companies to commercialize products, processes, techniques, or
particular recipes.
e. Goodwill. value owned by a company as a result of a good name, a
strategic location, a good manager, etc.
Recording of amortization of intangible assets in an adjusting entry is
(sample of patents) :
Patent amortization expense

Rp. xxx

Patent

Rp. xxx

2.4 The Using Of Fixed Assets Card

To facilitate the monitoring records of fixed assets carried on the
card. Fixed assets cards consist of :
a. Fixed assets holding card.
Serves to provide complete information about the company's fixed
assets. This information includes the accounts, the number and types of
fixed assets, year of manufacture, date of purchase, the percentage of
shrinkage, and the operation of the asset. vehicle for tangible fixed
assets can be coupled with information about the number plate, engine
number and chassis number.

Consider the example of fixed assets holding card.

Fixed Asset Master Card
Group of Assets
:
Type of Assets
:
No. Assets
:
Section
:
B

Year of

Ref

Date

Price

Value

Percentage
26

Desc

Brand
Manufacture

Acquisition

Acquisition

Residue

Depreciation

b. Exploitation card of fixed assets

This card contains information about the material exploitation include
maintenance expenses, repairs, depreciation, and taxes. If the leased
fixed assets, such as transport vehicles or buildings, the income from
fixed assets shall include the exploitation card. The purpose of
recording is to periodically do the analysis so that the level of
efficiency of fixed assets can be known. Can then decide whether the
assets will be sold or kept operated.
Consider the example below exploits card.
Exploitation Card of ____________
No. Assets
:
Asset Type
:
Brand Factory
:
Year of Manufacture
:
No. Police
:
Date

Ref

Mutation Expense
Description Amount

Date

Ref

Mutation Revenue
Description Amount

27

c. Inventory card list

Used to record the assets whose value is relatively small, but it has a
useful life of more than one year. Consider the example below the
card.
Inventory Card List
Inventaris
No.

e
Name

Date
Acquisition

Ref

Amount

Assets
Number

Section

Total

Desc

d. Depreciation card of fixed assets

This card contains information cost, depreciation each year and the
price of each book fixed assets. Examples of fixed assets depreciation
card is as follows :
Price
Year

Acquisitio

Accumulated
Depreciation

Depreciation Last

Book Value

Year

2.5 The Document Transactions Of Fixed Assets

28

Fixed assets can be acquired through a cash purchase transactions,

the purchase of credit and exchange transactions with noncash assets.
Therefore the transaction documents required for registration are as
follows :
1. Invoice as proof of purchase
2. Proof of payment of Value Added Tax (VAT)
3. Proof of cash expenditures, the evidence behind the name,
transportation costs installation costs and other costs associated with
the acquisition of fixed assets.
4. Evidence memorial, as evidence pengehentian and expenses of fixed
assets exchanged for other fixed assets.
Movements of fixed assets due cash purchase, purchase loans,
installment purchases, build your own, and receive gifts (donations), as
well as discovery.
2.6 The Identification Of Mutation In Fixed Assets
Determination of the cost of fixed assets. The cost of fixed assets is
all the costs incurred or incurred to acquire assets that are ready for use in
the operations of the company. hatga acquisition include:
a. Purchase price
b. Transport cost
c. Tax to be paid
d. Installation costs
e. Trial costs
f. Commission fees
g. Cost under the name
h. Insurance costs when transporting
The fixed assets of the company acquired in various ways,
including the following:
1. Purchase of cash

29

Fixed assets acquired from cash purchases are recorded in the books
with the amount of money spent. In the amount of money spent on
fixed assets including meperoleh invoice price and all costs incurred in
order that the assets are ready for use, such as transport costs, the cost
under the name of, and other costs. All these costs are capitalized as
the cost of fixed assets.
2. Purchase on deferred payment
If the assets acquired from the purchase of installment in the cost of
fixed assets should not include interest. Interest during installments
either clearly stated or not stated separately, should be excluded from
the acquisition cost and is charged as interest expense.
3. Acquisition by exchange
Lots of purchase of fixed assets carried out by way of exchange or
often called "exchange add", where the old assets are used to pay for
new assets, in whole or in part where the shortcomings are paid in
cash. In these circumstances, the cost principle should still be used.
That new assets are capitalized to the amount of the market price of the
old asset plus any money paid or capitalized by the market price of a
new asset received.
4. Acquisition by self construction
If the assets acquired by making your own, then the acquisition price
equal to all costs incurred until the asset is ready for use.
5. Acquisition by gift or discovery
If the assets acquired as a gift then the assets are recorded at market
price by crediting the capital account.
2.7 The Depreciation Of Fixed Assets
Depreciation is the allocation of the acquisition cost of fixed assets
as an expense in the accountancy period in its utilization.
Depreciation of fixed assets
Rp. xxx
Accumulated depreciation of fixed assets
Rp.xxx
Factors that determine the amount of depreciation of fixed assets
are:
a. Acquisition Price

30

That all expenses incurred / incurred to acquire fixed assets, so ready

to be used in the normal course of the company.
b. Recidual Value
That is the amount / value is expected to be acceptable if the assets are
sold or exchanged when the asset has been rendered unusable by
economist.
c. Economical Age
Estimated useful lives of the assets is calculated from the start to
operate until the fixed assets is expected to no longer profitable.
d. Depreciation method used aims to transform and determine the amount
of depreciation expenses for each accountancy period.
Depreciation Method Of Fixed Assets
1. Straight Line Method
Represents depreciation of fixed assets shall be the same every year.
Aquistion PrizeRecidual Value
Depreciation Of Each Year =
Economical Age

Depreciation Rate =

100
Economical Age

Depreciation Expense = Depreciation Rate x (AP RV)

2. Sum Of The Years Digit Method
An annual depreciation of fixed assets using their numbers decline.
(1+n)
xn
Sum Of The Year =
2
Sum To Be Depreciated = Acquisition Price Recidual Value
Depreciation

be

Remaining Life Of T h e AssetsUse

x Depreciated
Of T he Years
3. Double Declining Balance Method

31

According to this method annual depreciation of fixed assets is

determined based on the use of a specific presentation that is calculated
from the price book of the year.
Depreciation Rate = 2 x Depreciation By Straight Line Method
The method does not determine the amount of residual value. Each end
of the magnitude of the estimated residual value equal to book value.
4. Service Hours Method
Is the depreciation expense is based on hours of work that can be
achieved in the period.
Depreciation
Rate

Of

Service

Hours

Aquistion PrizeRecidual Value

Estimated Number Of Hours Worked
Depreciation Expense = Actual Working Hours x Charge Per
Hour

5. Productive Output Method

Depreciation expense is based on the number of units of product
produced in the period.
Depreciation
Rates

Per

Product

Aquistion PrizeRecidual Value

Estimated Number Of Unit Product
Depreciation Expense =
Number Of Units Product Produced x Depreciation Rates
Per Product

2.8 The Recording Of Ceasing Transaction In Fixed Assets

32

If the assets are less useful because of low economic life or

unsuitable continuous, ineffective and inefficient in its use, the asset must
be stopped long tersebur use. Grounds for termination of fixed assets:
1. Sale
Fixed assets are not depleted during its use as a thing sold. The
difference between the sale proceeds of the book sale of fixed assets
recorded as a gain / loss on sale of fixed assets.
2. Broken
If the assets disposed of or transferred, the cost to remove or dispose of
dismissal is recorded as a loss of fixed assets.
3. Exchanged for other assets
Fixed assets that have not expired use other assets exchanged for a new
one, while the lack of a new fixed asset price paid in cash. This
transaction is called a trade-in. The transaction cost of fixed assets
received is its market price. The difference between the book value of
fixed assets are turned over to the exchange rates are recorded as
income / loss exchange of fixed assets.
4. Expiration of its use
Fixed assets are depleted during use will be treated as follows:
a. Sale
b. In rid
c. Dismissed its use but not removed.
2.9 The Fixed Assets Report
Fixed asset management activities to ensure data on fixed assets
should generate data on assets that are subject to be reported to
management. other types of fixed assets report include:
1. Statements fixed assets in poor condition

2.
3.

Statements fixed assets are being repaired

Statements fixed assets used

33

4.

Depreciation reports
Recording

of

amortization

of

intangible

fixed

assets

future use of all types of intangible assets will be depleted because it is

restricted by law. So in the end of intangible assets no longer benefit.
Therefore the cost of intangible assets recorded in the books must be
amortized, meaning allocated to accounting periods during the life of its
benefits.

Recording and methods of amortization of intangible assets in

general are as follows:
a. Amortization method, commonly used straight-line method with no
residual value memperhitungkann presence.
b. Amortization expense for each period, recorded a debit to an expense
account and credited directly to the amortization of intangible assets
accounts are concerned.
Presentation of fixed assets in the balance sheet.
Principles to be considered in the presentation of fixed assets in the
balance sheet are as follows.
a. Each type of fixed assets should be separately stated in the balance sheet or
detailed in the notes to the financial statements.

b. Fixed assets are stated at cost, and depreciation expressed as a reduction in

the cost of fixed assets.

c. Each type of intangible fixed assets must be stated in the balance sheet should
be stated separately
d. Intangible assets in the balance sheet are stated at the remaining benefits.

34

CHAPTER III
THE JOB TRAINING PROGRAM
3.1 The Historical Of Dinas Perhubungan Balikpapan
Long before the existence of human civilization in the world,
human beings are after require for the purposes of road traffic; traffic as it
is very simple, especially overland traffic, then man was born and grew up
across the globe by all human activities require good road from a place to
another for a purpose.
To set the order, smoothness, safety and security of road users
since the Dutch colonial era, around 1933, the Dutch Government has
made Oendang-Oendang The way through department-verkeer weg en
water staat (weg verkeer Ordinance) Gazette number 86 in 1933 with PPL
( The Road Traffic government Determination No. 451 of 1936) as the
technical instructions made Pen-LP (Government Decision No. Traffic
10.1/9/2 dated 26 September 1936) 18 years later no improvement
Oendang-Oendang The Road Traffic Oendang-Oendang the numbers 1
1957 30 January 1951 gazette number 42. In 1965 Oendang Oendang
traffic-the path of substance has changed so much that the traffic is
traveling from one place to another to bring something in the form of
goods transported either by motorized vehicles or non-motorized vehicles,
then in 1965 was enhanced Oendang Oendang number 3 on traffic and
35

road transport (LLAJR). 27 years later enacted Law No. 14 year 1992
(State Gazette of the Republic of Indonesia in 1992 number 49) and 17
years later revised by Law No. 22 of 2009 number 96), both these laws
that regulate the traffic and transport road.
The first period of the laws governing local government, the Law
number 51 of 1957, Government Regulation No. 16 of 1958 concerning
the delivery of road freight traffic matters to the Regional Government and
Law No. 5 of 1974 on the Principles of Governance in the Region . The
mandate of the law it issued Government Regulation No. 22 of 1990
regulating the delivery of the government's affairs in the field of traffic and
transport roads to the area level I and level II. The creation of the
department created by a presidential decree number 44 of 1974 on the
subject of the principal departments of the organization, and then changed
again with the presidential decree number 15 of 1984 on the organizational
structure as last amended by Presidential Decree number 58 tahun1933,
the Department of Transportation has adjusted its organization at the
provincial level to provincial office of the Department of Transportation
according to the decision of the Minister of Communications Decree.

36

91/OT.002/Phb.80 on the Organization Department of Transportation as

the change last by the Minister of Transportation number 58 in 1991.
The second period Act number 22 of 1999 on Regional
Government in the implementation of government run emphasized on
Provincial Government and District / city government in accordance with
Government Regulation No. 39 of 2001 on the implementation of
deconcentration.
Third period with Law No. 32 of 2004 on Regional Government
(State Gazette of the Republic of Indonesia in 2004 an additional 125
numbers Republic of Indonesia in 4437). As amended several times; latest
by Law No. 12 of 2008 concerning changes to the two, the Law No. 32 of
2004 on Regional Government (State Gazette of the Republic of Indonesia
in 2008 number 59, Additional State Gazette of the Republic of Indonesia
Number 4844); third period to further clarify the organization of
government decentralization and deconcentration in the area; article 8,
paragraph 1 of Government Regulation number 38 year 2007 concerning
the affairs of the division between Government,
Dinas Perhubungan Balikpapan is one of the government agencies
engaged in services. Transportation agencies are more likely to address the
issue of traffic, both means of transportation and infrastructure facilities,
as well as order and making signs trafficked.
37

In his journey Dinas Perhubungan to further improve its

performance in improving the quality of transportation in Indonesia. Such
conduct decisive action for the perpetrators of traffic, especially public
transport. Decisive action is carried out solely for general users tools
transport feel safe and comfortable in use and that the feasibility of
transportation can be controlled. This causes frequent communication
Balikpapan Office conducted a raid on the feasibility of running public
transport. And the results of the field studies was very surprising, it turns
out most of the public transport vehicles that operate on the highway can
not be declared roadworthy. It is used as a motivation for the Department
of Transportation to be able to finish.
To find a feasible way of transportation or not, the Dinas
Perhubungan imposed a rule for every public transport vehicles and freight
to perform periodic testing of the vehicle every 6 months in the UPT-PKB.
Test vehicles are often called KIR, where for every vehicle carrying KIR
required to pay administrative expenses and charges subscription parker.
PAD (local revenue) Dinas Perhubungan is not only just from
parking charges subscription but also from various other services such as
curbside parking fees, terminal, harbor Speedboat, examination motorized
vehicles, terminal, route permit, and vehicle rental route.

38

Dinas Perhubungan is divided into several areas, such as areas of

transportation, sea transportation field, the field of air transport, post and
telecommunications fields of transportation.
1. Secretariat
Secretariat shall carry out coordination of programming and
management of financial affairs, personnel, home office,
equipment,

protocol,

public

relations,

filing

and

correspondence, as well as evaluation and reporting. Affair

human resources consisting of civil servants, local salaries,
casual labor, auxiliary power, and park interpreter. The
secretariat has operational facilities include: operational car,
crane car, official car, motorcycle service, operational motors,
and motors service.
2. Land Transportation Sector
The main duties of this field is carry out its responsibilities
in the field of land cover management, traffic analysis, areas
prone to traffic accidents and traffic monitoring and control of
operations and one of its functions is the implementation of the
provision of public transportation service license permits
transport

route

serving

the

city

and

route

permit

39

recommendation or permits transport operations within the

province.
Transportation agencies are equipped with the area traffic
control system (ATCS), which has benefits include improving
traffic safety monitoring of the condition or status of a
centralized intersections, minimize the time so as to provide
smooth stop for emergency vehicles such as fire engines,
ambulances and more. Besides Affair has traffic signs as
follows: warning signs, prohibition signs, signs orders and
guidance signs. Means provided by the Transportation
Department include: the crossing (zebra Cross), ribbon booster,
traffic islands, bus stops, school zones safe, bike lane, and
pedestrian paths.
3. Field of Sea Transportation, air, postal & Telecommunications
3.2 The Vision And Mission On Dinas Perhubungan Balikpapan
a. Vision On Dinas Perhubungan Balikpapan is :
1. Realization of East Kalimantan Transportation Services For A
Reliable And Professional.
2. Realizing Balikpapan city as livable city towards Madinatul
Faith.
b. Mision On Dinas Perhubungan Balikpapan is :
a) Improving the Quality of Human Resources
b) Improving Safety and Security in bertransportasi
c) Developing, Improving and Maintaining transportation
infrastructure

40

d) Improve coordination, guidance, supervision and control in the

field of transport
e) Improving the quality and management of transportation services
f) Improving the Quality of User Services Personnel and
Transportation
g) Developing Management and Transportation Engineering.
h) Encourage the availability of environmentally friendly
vehicles.
i) Rating equitable public transport services.

41