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Individual Assignment - Definitionofassets - BasedOnPP71 THN 2010
Individual Assignment - Definitionofassets - BasedOnPP71 THN 2010
Individual Assignment - Definitionofassets - BasedOnPP71 THN 2010
Individual Assignment
INTERNATIONAL ACCOUNTING
ECONOMIC FACULTY
ANDALAS UNIVERSITY
. Based on PP No. 71 Tahun 2010 Future economic benefits embodied in assets are the
potential of these assets to contribute directly or indirectly to government operational
activities in the form of revenue streams or savings in spending for the government. Based on
PP No. 71 Tahun 2010 Assets are classified into current assets, non-current assets and fixed
assets
1. Current Assets
2. Non-Current Assets
Non-current assets are government assets whose use is expected to exceed one reporting
period (1 year), consisting of long-term assets and intangible assets, as well as assets that are
used directly or indirectly for government activities or used by the general public. To
facilitate understanding of non-current assets that are presented in the balance sheet, non-
Based on PP No. 71 Tahun 2010 current assets are classified into :Long-term investments,
Fixed assets,Reserve funds, and Other assets.
3. Fixed Assets
Based on PP No. 71 Tahun 2010 Definition of Fixed Assets are tangible assets that have a
useful life of more than twelve months to be used in government activities or utilized by the
general public. Fixed assets consist of: Land,Equipment and machinery,Buildings,Roads,
irrigation and networks,Other fixed assets
Construction under work. (kontruksi dalam pengerjaan)
Reserve Funds are funds set aside to accommodate needs that require relatively large
funds that cannot be met within a budget year. Reserve funds are detailed according to the
purpose of their formation.
Other non-current assets are classified as other assets. Other assets included are
intangible assets, installment sales receivables that are due more than 12 (twelve) months,
assets with third parties (partnerships), and restricted cash.
Recognition of assets is carried out if there is a potential future economic benefit that will be
obtained by the government and has a value or cost that can be measured reliably, or it can be
recognized also when received or ownership and / or mastery is transferred to the
Government. As for the measurement or recording of an asset depends on the type of assets,
including the following:
1. Long-term investments are stated at cost, including other additional costs incurred to
obtain legal ownership of the investment;
2. Fixed assets are recorded at cost. If the valuation of fixed assets using acquisition
costs is not possible, the value of fixed assets is based on fair value at the time of
acquisition.
Acquisition costs of fixed assets built by self-management include : direct costs for labor, raw
materials, and indirect costs including planning and supervision costs, equipment, electricity,
equipment rental, and all other costs incurred in relation to development the fixed asset. In
addition to land and construction under construction, all fixed assets can be depreciated
according to the nature and characteristics of the asset. While for monetary assets
denominated in foreign currencies are translated and expressed in rupiah. Foreign currency
translation uses the central bank's middle rate at the balance sheet date.