ANALYSIS OF THE IMPACT BIOLOGICAL ASSET ACCOUNTING ON INVESTMENT DECISION IN THE PLANTATION INDUSTRY INDONESIA

Abstract

This study aims to analyze the impact of biological asset accounting on investment decisions in the plantation industry in Indonesia. The plantation industry plays an important role in the economy that utilizes the uniqueness of biological assets as a focus in its production activities. Accounting for biological assets has a crucial role in measuring and reporting the value of biological assets which will ultimately affect investment decisions in the plantation industry. The research method of this research is included in quantitative research with a case study approach conducted on plantation industry companies using purposive sampling techniques with the criteria that are listed on the IDX from 2019 to 2022 resulting in 25 samples of plantation industry companies. The data used involves secondary data which will be analyzed using the SPSS application in conducting multiple linear regression analysis that analyzes the relationship between biological asset accounting and investment decisions and a paired t-test is conducted to compare differences before and after the application of biological assets accounting is carried out and what impact it has on investment decisions. The data analysis procedure in this study revealed interesting findings. Surprisingly, the application of biological asset accounting (PSAK 69, 2020 Adjustment) does not have a significant impact on investment decisions in the plantation industry. More interestingly, an equally strong finding showed that there were no significant differences in investment decisions before and after applying PSAK 69, 2020 Adjustment.