MOTIVASI MANAJEMEN LABA DALAM KAPITALISASI BIAYA RISET DAN PENGEMBANGAN

YUSLI MARIADI, SUTRISNO SUTRISNO, ROSIDI ROSIDI
2013 El Muhasaba Jurnal Akuntansi  
<p>The capitalization of research and development (R&amp;D) costs is a controversial accounting issue because of the contention that such capitalization is motivated by incentives to manipulate earnings. Indonesian Financial Accounting Standards (SAK) allows for the capitalization of R&amp;D costs. Based on a sample of manufacturing companies of Indonesia Stock Exchange from 2009 to 2011, this study examines whether companies' decisions to capitalize R&amp;D costs are affected by
more » ... d by earnings-management motivations such as earnings smoothing and to avoid violating debt-covenant. In addition, this study aims to show that the capitalization of R&amp;D costs affects the level of firms' earnings-management. Using a Tobit regression model to test the first and second hypotheses and linear regression model to test third hypotheses, the results show that the companies do capitalize the R&amp;D costs for earnings-smoothing and reducing the risk of violating debt-covenants purposes. In addition, the results show that the capitalization of R&amp;D cost affects the level of firms' earnings-management and it is a part of earnings management.</p> <p> </p> <p><br /></p>
doi:10.18860/em.v3i2.2341 fatcat:yhesm5nvnnatjlllzg63c7dmte