RESTATEMENT OF PT GARUDA INDONESIA’S FINANCIAL
STATEMENTS IS CONSERVATIVE?

RESTATEMENT OF PT GARUDA INDONESIA’S FINANCIAL
STATEMENTS IS CONSERVATIVE?

conservatism, disclosure of earnings, restatement of financial statements

This research is a case study research at PT Garuda Indonesia Tbk (PT GIAA). The motivation for conducting the research was the existence of PT GIAA's financial reporting in 2018 which revealed a significant increase in profit which required PT GIAA to restate its financial statements in 2019. The analysis used was descriptive and quantitative analysis. The restatement of the financial statements has an impact on changes in reported earnings, namely there are losses, adjustments to accounts also cause some changes in the amounts recognized in the financial statements. On this basis, a quantitative analysis was carried out to determine the level of conserv-atism in the restatement of PT GIAA's financial statements. Based on accrual con-servatism, the company still applies conservatism principles but in the restatement period of financial reporting in 2018 the level of conservatism decreased. Based on market conservatism, the market value of the company's shares is lower than its book value, this indicates that the company is aggressive in determining book val-ue. Even the average stock return each year is negative and a sharp decline oc-curred during the restatement of financial statements. This indicates that market confidence decreases when the company restatement its financial statements

Yuni Pristiwati Noer Widianingsih1, Nikke Yusnita Mahardini2, Tulus Prijanto3

https://jurnal.stie-aas.ac.id/index.php/IJEBAR

2022

peri irawan

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