Analysis Of Recognition Of Loss Insurance Expenses According To PSAK No. 28 At PT. Insurance Ramayana Tbk Medan Branch

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Introduction

The accounting process, especially related to the recognition of income and expenses and economic transactions related to it, plays an important role in a company. Financial accounting is a crucial aspect of a company's operations, as it provides stakeholders with accurate and transparent information about the company's financial performance. In Indonesia, the Financial Accounting Standards Board (Bapepam) issues standards and guidelines for financial accounting, including the Statement of Financial Accounting Standards (PSAK) No. 28 (revised 1996). This study focuses on the recognition of loss insurance expenses at PT. Insurance Ramayana Tbk Medan Branch, with the aim of finding out whether the company's practices are in accordance with PSAK No. 28.

Background of the Study

PT. Insurance Ramayana Tbk Medan Branch is a leading insurance company in Indonesia, providing various types of insurance products to its customers. The company's financial accounting policy is stipulated in the Decree of the Board of Directors No. SK 025idmal1992 dated December 31, 1992, and refers to PSAK No. 28. The company's financial accounting policy is designed to provide accurate and transparent information about the company's financial performance to its stakeholders. However, the company's practices may not be entirely in accordance with PSAK No. 28, which could result in inaccurate financial statements and affect the company's profits.

Research Methods

This study uses a descriptive research method, which involves collecting, compiling, interpreting, and analyzing data to provide a comprehensive understanding of the recognition of loss insurance expenses at PT. Insurance Ramayana Tbk Medan Branch. The data collected includes the company's financial statements, accounting policies, and other relevant documents. The data is analyzed using descriptive statistics and content analysis to identify the company's practices and compare them with PSAK No. 28.

Research Result

The study found that PT. Insurance Ramayana Tbk Medan Branch has a financial accounting policy as stipulated in the Decree of the Board of Directors No. SK 025idmal1992 dated December 31, 1992, and refers to PSAK No. 28. In recognition of claim loads, the company applies the accrual basis method, which is at the time Report of Definite Losses published. However, the company found differences in recognition of claim loads for Fire Insurance (fire). The new company recognizes the burden of claims at the time Payment Order received by the Branch Office.

Analysis and Discussion

The study found that the practice of claim recognition for Fire Insurance (Fire) at PT. Insurance Ramayana Tbk Medan Branch is not entirely in accordance with PSAK No. 28 (revised 1996). This difference in recording can result in the amount of claim load recognized for the current year period is too large and potentially Affecting the company's profits. The company's financial accounting policy is designed to provide accurate and transparent information about the company's financial performance to its stakeholders. However, the company's practices may not be entirely in accordance with PSAK No. 28, which could result in inaccurate financial statements and affect the company's profits.

Suggestion

Based on the results of the study, it is recommended that PT. Insurance Ramayana Tbk Medan Branch reviews the claim recognition recognition policy for Fire Insurance (Fire) to be in line with PSAK No. 28 (revised 1996). This is important to increase the accuracy of financial statements and provide transparent information to stakeholders. The company should also consider revising its financial accounting policy to ensure that it is in accordance with PSAK No. 28 and other relevant accounting standards.

Conclusion

This study shows that PT. Insurance Ramayana Tbk Medan Branch has implemented a financial accounting policy as stipulated in the Decree of the Board of Directors and refers to PSAK No. 28. However, the company needs to make adjustments to the policy of recognition of claims for Fire Insurance (fire) to be in accordance with applicable accounting principles. The study recommends that the company reviews its financial accounting policy to ensure that it is in accordance with PSAK No. 28 and other relevant accounting standards.

Keywords:

  • Loads: The amount of claim load recognized for the current year period.
  • Recognition: The process of identifying and recording financial transactions in the financial statements.
  • Loss insurance: A type of insurance that provides coverage for losses or damages.
  • PSAK No. 28: The Statement of Financial Accounting Standards (PSAK) No. 28 (revised 1996) issued by the Financial Accounting Standards Board (Bapepam) in Indonesia.
  • PT. Insurance Ramayana Tbk Medan Branch: A leading insurance company in Indonesia.

Limitation of the Study

This study has several limitations. Firstly, the study only focuses on the recognition of loss insurance expenses at PT. Insurance Ramayana Tbk Medan Branch and does not consider other types of insurance products offered by the company. Secondly, the study only analyzes the company's financial statements and accounting policies and does not consider other relevant documents. Finally, the study only provides a descriptive analysis of the company's practices and does not provide a comparative analysis with other companies.

Future Research Directions

This study provides several future research directions. Firstly, the study recommends that future research should consider other types of insurance products offered by PT. Insurance Ramayana Tbk Medan Branch and analyze their financial accounting policies. Secondly, the study recommends that future research should consider other relevant documents, such as the company's internal control policies and procedures. Finally, the study recommends that future research should provide a comparative analysis with other companies to identify best practices in financial accounting.

Conclusion

In conclusion, this study provides a comprehensive analysis of the recognition of loss insurance expenses at PT. Insurance Ramayana Tbk Medan Branch. The study found that the company's practices are not entirely in accordance with PSAK No. 28 (revised 1996), which could result in inaccurate financial statements and affect the company's profits. The study recommends that the company reviews its financial accounting policy to ensure that it is in accordance with PSAK No. 28 and other relevant accounting standards.

Q: What is the purpose of this study?

A: The purpose of this study is to analyze the recognition of loss insurance expenses at PT. Insurance Ramayana Tbk Medan Branch and determine whether the company's practices are in accordance with PSAK No. 28 (revised 1996).

Q: What is PSAK No. 28?

A: PSAK No. 28 is the Statement of Financial Accounting Standards (PSAK) No. 28 (revised 1996) issued by the Financial Accounting Standards Board (Bapepam) in Indonesia. It provides guidelines for the recognition and measurement of financial transactions, including insurance claims.

Q: What is the accrual basis method?

A: The accrual basis method is an accounting method that recognizes expenses and revenues when they are earned or incurred, regardless of when the cash is received or paid.

Q: What is the Report of Definite Losses?

A: The Report of Definite Losses is a document that is prepared by the insurance company when a loss is confirmed and the amount of the loss is determined.

Q: What is the Payment Order?

A: The Payment Order is a document that is prepared by the insurance company when a payment is made to the policyholder.

Q: Why is it important to recognize loss insurance expenses accurately?

A: Accurate recognition of loss insurance expenses is important because it affects the company's financial statements and can impact the company's profits. Inaccurate recognition of loss insurance expenses can lead to misstatement of financial statements and affect the company's reputation.

Q: What are the implications of not recognizing loss insurance expenses accurately?

A: Not recognizing loss insurance expenses accurately can lead to misstatement of financial statements, affect the company's profits, and impact the company's reputation.

Q: What are the recommendations of this study?

A: The recommendations of this study are that PT. Insurance Ramayana Tbk Medan Branch should review its financial accounting policy to ensure that it is in accordance with PSAK No. 28 (revised 1996) and other relevant accounting standards.

Q: What are the limitations of this study?

A: The limitations of this study are that it only focuses on the recognition of loss insurance expenses at PT. Insurance Ramayana Tbk Medan Branch and does not consider other types of insurance products offered by the company. Additionally, the study only analyzes the company's financial statements and accounting policies and does not consider other relevant documents.

Q: What are the future research directions of this study?

A: The future research directions of this study are to consider other types of insurance products offered by PT. Insurance Ramayana Tbk Medan Branch and analyze their financial accounting policies. Additionally, the study recommends that future research should consider other relevant documents, such as the company's internal control policies and procedures.

Q: What are the conclusions of this study?

A: The conclusions of this study are that PT. Insurance Ramayana Tbk Medan Branch has implemented a financial accounting policy as stipulated in the Decree of the Board of Directors and refers to PSAK No. 28. However, the company needs to make adjustments to the policy of recognition of claims for Fire Insurance (fire) to be in accordance with applicable accounting principles.

Q: What are the keywords of this study?

A: The keywords of this study are:

  • Loads: The amount of claim load recognized for the current year period.
  • Recognition: The process of identifying and recording financial transactions in the financial statements.
  • Loss insurance: A type of insurance that provides coverage for losses or damages.
  • PSAK No. 28: The Statement of Financial Accounting Standards (PSAK) No. 28 (revised 1996) issued by the Financial Accounting Standards Board (Bapepam) in Indonesia.
  • PT. Insurance Ramayana Tbk Medan Branch: A leading insurance company in Indonesia.