AKM 3: 1-1 Investasi (Preview)

Summary

This video introduces the topic of accounting for investments, focusing on both debt and equity investments. It explains the significance of investments, types such as property, shares, and bonds, and how to recognize, record, assess, and report investment transactions. The material builds on previous knowledge of accounting for assets, liabilities, equity, and revenue recognition. It emphasizes the accounting process for different types of equity investments based on ownership percentage, as well as regulations under PSAK 50, 55, and 60, governing financial instruments. By the end, learners will understand the equity method and the impact of investment transactions.

Takeaways

• 😀 Investment is defined as the placement of capital into companies or institutions to earn returns, either through money or other assets.
• 😀 The main objective of investment is to generate a return, which can come from various forms such as property, gold, shares, mutual funds, foreign exchange, and bonds.
• 😀 Before diving into accounting for investments, understanding previous coursework in Intermediate Financial Accounting 1 and 2 is crucial as it builds the foundation for investment accounting.
• 😀 In KM1, the focus was on asset groups such as receivables, inventories, and property, plant, and equipment, while KM2 covered liabilities, equity, and revenue recognition.
• 😀 Investment accounting primarily deals with asset accounts, and learning about it requires prior knowledge in areas like equity and liability accounting.
• 😀 In previous lessons, students learned how to recognize, record, assess, and report on shares and bonds as liabilities from the creditor's perspective; in investment accounting, the focus shifts to being the investor providing funds.
• 😀 The primary goal of this course is to equip students with the skills to apply accounting principles to investments in both debt and equity forms.
• 😀 The course will focus on investment accounting methods, including the equity method, for transactions involving debt and equity investments.
• 😀 The course also covers important topics like impermanence, adjustments, and transfer between investment categories as per PSAK regulations.
• 😀 PSAK 50, 55, and 60 govern the accounting of financial instruments, discussing their presentation, recognition, measurement, and disclosure as of January 1, 2018.

Q & A

What is the general definition of investment in the context of accounting?

Investment is the placement of capital in the form of money or other important assets into a company or institution, typically made by a company or individual, with the expectation of earning a return on the capital invested.

What are some common forms of investment mentioned in the script?

The script mentions property, gold, shares, mutual funds, foreign exchange, bonds, and others as common forms of investment.

Why is understanding previous courses important before studying investment accounting?

Understanding concepts from previous courses, such as Intermediate Financial Accounting 1 and 2, is crucial as they provide the foundation for understanding investment accounting, which often requires knowledge of other accounts studied earlier, such as assets, liabilities, equity, and revenue recognition.

What types of accounts have been studied in earlier courses (KM1 and KM2)?

In KM1, asset accounts like receivables, inventory, property, plant, and equipment were studied. In KM2, accounting for liabilities, equity, and revenue recognition was covered.

What is the role of accounting for investment in this context?

Accounting for investment focuses on how to recognize, record, assess, and report transactions related to debt and equity investments. This material aims to help students apply investment accounting principles.

What are the two main types of investment accounting discussed in the script?

The two main types of investment accounting discussed are debt investment and equity investment.

How is accounting for debt investment different from equity investment?

Accounting for debt investment focuses on transactions involving loans or bonds, where the investor lends funds to a company. Accounting for equity investment, on the other hand, deals with transactions involving ownership in a company through shares.

What are the three categories of equity ownership covered in the course material?

The three categories of equity ownership discussed are: ownership of less than 20%, ownership between 20% and 50%, and ownership above 50%.

What standards govern the accounting for financial instruments like investments?

The accounting for financial instruments, including investments, is regulated by PSAK 50, PSAK 55, and PSAK 60. PSAK 50 discusses the presentation, PSAK 55 covers recognition and measurement, and PSAK 60 addresses disclosure of financial instruments.

What does the equity method refer to in the context of investment accounting?

The equity method refers to the process used for accounting for equity investments when an investor has significant influence over the investee, typically when ownership is between 20% and 50%. This method involves recognizing the investor's share of the investee's profits and losses.