Optimizes financial performance

Oct 13, 2025 by talynt.org 19 views

Introduction

In the world of accounting, depreciation of fixed assets plays a crucial role in a company's financial statements. It is a process of allocating the cost of a tangible asset over its useful life, which is a key component in determining a company's profitability and financial performance. However, the accounting for depreciation of fixed assets can be complex, especially when it comes to the differences between Financial Accounting Standards (SAK) and tax law. This article aims to discuss the differences in accounting for depreciation of fixed assets according to SAK and tax law, as well as the impact of these differences on the financial statements of PT. Hexasetia Sawit Medan.

Research Purpose

The primary purpose of this study is to provide a clear understanding of the differences in accounting for depreciation of fixed assets between SAK and tax provisions in force at PT. Hexasetia Sawit Medan. Specifically, the formulation of the problem raised is:

What is the effect of the difference in the depreciation accounting according to SAK and taxation provisions on financial statements?
What is the management policy in correcting profits arising from differences in profit calculation according to SAK and taxation provisions?

Types of Data Used

In this study, the data used is secondary data, which is obtained directly from the research object. The data includes the organizational structure, a general description of the company, and data regarding the company's fixed assets.

The Role of Depreciation Expenses

The depreciation expense of fixed assets is one of the accounts that has a significant impact on the financial statements. Differences in the depreciation accounting method between SAK and taxation law can cause significant differences in accounting and fiscal profit. Commercial accounting profits resulting from financial statements are often different from fiscal profit, which is the basis for tax calculation.

Depreciation Accounting Methods

There are several depreciation accounting methods, including the Straight-Line Method, the Declining Balance Method, and the Units-of-Production Method. Each method has its own advantages and disadvantages, and the choice of method depends on the type of asset and the company's accounting policy.

Fiscal Correction

As a result of the differences in depreciation accounting methods, fiscal correction is essential. This correction aims to adjust the recognized income and costs according to taxation provisions. The right correction can help companies to ensure tax compliance and avoid sanctions from the authorities.

Importance of Fiscal Correction

Fiscal correction is crucial in ensuring that a company's financial statements accurately reflect its financial performance. It also helps to prevent tax evasion and ensures that the company is in compliance with tax laws and regulations.

Research Results

The results of the study show that the difference between accounting profit and fiscal profit is a temporary difference. This difference is caused by the use of different depreciation methods. It is essential to note that the fiscal correction process has been carried out well by the company.

Suggestions for Companies

The author recommends that PT. Hexasetia Sawit Medan considers the use of other depreciation methods that are more in line with SAK. In addition, the grouping of fixed assets must be adjusted to the Decree of the Minister of Finance (KMK) No.520/KMK. To ensure proper fiscal correction, knowledge about tax inspection techniques is also needed for employees who are responsible for taxation matters.

Conclusion

Differences in the depreciation accounting between SAK and Taxation Law have a significant impact on financial statements at PT. Hexasetia Sawit Medan. By understanding this difference, companies can be better in planning taxation and accounting strategies, as well as in managing fixed assets. Management needs to adopt a policy that allows the suitability between accounting and taxation recognition to optimize the company's financial performance.

Recommendations for Future Research

Future research should focus on the impact of depreciation accounting methods on a company's financial performance. Additionally, research should be conducted on the effects of fiscal correction on a company's tax compliance and financial statements.

Limitations of the Study

This study has several limitations, including the use of secondary data and the limited scope of the research. Future research should aim to overcome these limitations by using primary data and conducting a more comprehensive study.

References

[1] Financial Accounting Standards (SAK)
[2] Tax Law
[3] Decree of the Minister of Finance (KMK) No.520/KMK
[4] PT. Hexasetia Sawit Medan's financial statements

Note: The references provided are a sample and may not be actual references used in the study.

Introduction

In our previous article, we discussed the differences in accounting for depreciation of fixed assets between Financial Accounting Standards (SAK) and tax law, as well as the impact of these differences on the financial statements of PT. Hexasetia Sawit Medan. In this article, we will answer some of the frequently asked questions (FAQs) related to this topic.

Q&A

Q1: What is depreciation of fixed assets?

A1: Depreciation of fixed assets is the process of allocating the cost of a tangible asset over its useful life. It is a key component in determining a company's profitability and financial performance.

Q2: What are the differences between SAK and tax law in accounting for depreciation of fixed assets?

A2: The main differences between SAK and tax law in accounting for depreciation of fixed assets are:

Depreciation method: SAK allows the use of different depreciation methods, such as the Straight-Line Method, the Declining Balance Method, and the Units-of-Production Method. Tax law, on the other hand, requires the use of the Straight-Line Method.
Depreciation period: SAK allows the use of different depreciation periods, such as 5-10 years. Tax law requires the use of a depreciation period of 5-10 years, depending on the type of asset.
Depreciation rate: SAK allows the use of different depreciation rates, such as 10-20%. Tax law requires the use of a depreciation rate of 10-20%, depending on the type of asset.

Q3: What is the impact of the differences in depreciation accounting methods on financial statements?

A3: The differences in depreciation accounting methods can have a significant impact on financial statements, including:

Accounting profit: The use of different depreciation methods can result in different accounting profits.
Fiscal profit: The use of different depreciation methods can result in different fiscal profits.
Tax compliance: The use of different depreciation methods can affect tax compliance and the risk of tax evasion.

Q4: What is fiscal correction?

A4: Fiscal correction is the process of adjusting the recognized income and costs according to taxation provisions. It is essential to ensure that a company's financial statements accurately reflect its financial performance and comply with tax laws and regulations.

Q5: Why is fiscal correction important?

A5: Fiscal correction is important because it:

Ensures tax compliance: Fiscal correction ensures that a company's financial statements accurately reflect its financial performance and comply with tax laws and regulations.
Prevents tax evasion: Fiscal correction helps to prevent tax evasion and ensures that a company pays the correct amount of taxes.
Optimizes financial performance: Fiscal correction can help to optimize a company's financial performance by ensuring that its financial statements accurately reflect its financial position.

Q6: What are the benefits of using a consistent depreciation method?

A6: The benefits of using a consistent depreciation method include:

Improved financial reporting: A consistent depreciation method ensures that financial statements accurately reflect a company's financial performance.
Enhanced tax compliance: A consistent depreciation method ensures that a company's financial statements comply with tax laws and regulations.
Reduced risk of tax evasion: A consistent depreciation method reduces the risk of tax evasion and ensures that a company pays the correct amount of taxes.

Q7: What are the consequences of not using a consistent depreciation method?

A7: The consequences of not using a consistent depreciation method include:

Inaccurate financial reporting: Inaccurate financial reporting can lead to poor decision-making and a lack of transparency.
Tax non-compliance: Tax non-compliance can result in penalties and fines.
Risk of tax evasion: The risk of tax evasion increases when a company does not use a consistent depreciation method.

Conclusion

In conclusion, the differences in accounting for depreciation of fixed assets between SAK and tax law can have a significant impact on financial statements. It is essential to understand these differences and use a consistent depreciation method to ensure accurate financial reporting, tax compliance, and reduced risk of tax evasion.