Positive Accounting Theory In Predicting Accounting Choice (An Overview Of Adopted IFRS In PSAK 16 Research On The Audited Financial Statements)

Abstract

Background of this study  is the implementation  of IFRS di Indonesia  which is implemented  since 2008. One of  PSAK  that have been adopted was PSAK 16. This PSAK  was  permited entity  to choose  one of  the method of  fair value or historical cost to measure the property, plant and equipment. The purpose of this study is to test if The Positive Accounting Theory can predict choices of fair value method or historical cost method . This study observed 52 financial  statement of company that listed on  BEI  at 2009. Dependent variable that used in this study was firm size, institutional stock ownership, leverage,  and industrial membership. Result of the study shows that the fourth variable wasn’t have significant result in explaining The PAT  predicting accounting choice of those methods of property, plant and equipment measurement