Accounting Treatment of Fixed Assets and Depreciation Methods in Accordance with Financial Accounting Standards at PT Coca Cola Bottling Company

Oct 13, 2025 by wbrum.org 40 views

Accounting Treatment of Fixed Assets and Depreciation Methods in Accordance with Financial Accounting Standards at PT Coca Cola Bottling Company

Introduction

As a leading beverage company, PT Coca Cola Bottling Company Indonesia Medan plays a significant role in the Indonesian economy. The company's financial performance is a crucial aspect of its operations, and accurate financial reporting is essential to provide reliable information to stakeholders. In this study, we aim to reveal in detail how PT Coca Cola Bottling Company Indonesia Medan applies accounting policies related to its fixed assets, including the acquisition process, expenditure after acquisition, depreciation method used, as well as how to withdraw and present fixed assets in the financial statements.

Background

Fixed assets are a vital component of a company's assets, and their management is a critical aspect of financial accounting. The Indonesian Accounting Standards (SAK) provide guidelines for the accounting treatment of fixed assets, including the acquisition process, depreciation method, and presentation in financial statements. PT Coca Cola Bottling Company Indonesia Medan, as a large company, is expected to adhere to these standards to ensure accurate and transparent financial reporting.

Methodology

This study uses a descriptive method to analyze the accounting treatment of fixed assets at PT Coca Cola Bottling Company Indonesia Medan. The data used consists of primary data, which was obtained through direct interviews with staff and the Human Resources (HR) section of the company. The author aims to describe, interpret, and clarify the data based on actual events.

Results

The results of this study show that PT Coca Cola Bottling Company Indonesia Medan applied Financial Accounting Standards (SAK) in managing its fixed assets. The company has implemented a structured procedure to determine the cost of fixed assets, including the cost of purchasing, transportation costs, installation costs, and other costs related to the preparation of fixed assets for use.

Acquisition and Determination of Fixed Assets Costs

The company has implemented a structured procedure to determine the cost of fixed assets, including the cost of purchasing, transportation costs, installation costs, and other costs related to the preparation of fixed assets for use. This procedure ensures that the cost of fixed assets is accurately determined and recorded in the financial statements.

Fixed Asset Depreciation Calculation Method

The company uses the depreciation method in accordance with the type of fixed assets and its useful life. The commonly used method is a straight line method, which calculates shrinkage of the same amount each year. This method is used to allocate the cost of fixed assets over their useful life, ensuring that the asset is depreciated evenly.

Expenditures during the Use of Fixed Assets

The company records expenses during the use of fixed assets, such as repair and maintenance costs, to extend the useful life of fixed assets. These expenses are recorded as part of the cost of goods sold or as a separate expense in the income statement.

Withdrawal of Fixed Assets

PT Coca Cola Bottling Company Indonesia Medan has a clear procedure for recording withdrawal of fixed assets, either because it is obsolete, damaged, or sold. This withdrawal is accompanied by the calculation of the residual value, if any. The residual value is the amount that remains after the asset has been fully depreciated.

Presentation of Fixed Assets in the Financial Statements

Fixed assets are presented in the balance sheet with the book value that has been reduced by the accumulation of depreciation. Information about the depreciation method used is also included in the notes to the financial statements. This provides stakeholders with a clear understanding of the company's fixed assets and their value.

Conclusion

The application of SAK in the management of fixed assets shows the commitment of PT Coca Cola Bottling Company Indonesia Medan to produce accurate and transparent financial reports. This is important to provide reliable information to stakeholders, such as investors, creditors, and other interested parties. This study provides a clearer picture of how large companies such as PT Coca Cola Bottling Company Indonesia Medan manages its fixed assets. By understanding the best practice applied, other companies can learn and improve the management of their fixed assets to achieve optimal efficiency and effectiveness.

Recommendations

Based on the findings of this study, the following recommendations are made:

Companies should implement a structured procedure to determine the cost of fixed assets, including the cost of purchasing, transportation costs, installation costs, and other costs related to the preparation of fixed assets for use.
Companies should use the depreciation method in accordance with the type of fixed assets and its useful life.
Companies should record expenses during the use of fixed assets, such as repair and maintenance costs, to extend the useful life of fixed assets.
Companies should have a clear procedure for recording withdrawal of fixed assets, either because it is obsolete, damaged, or sold.
Companies should present fixed assets in the balance sheet with the book value that has been reduced by the accumulation of depreciation.

Limitations

This study has several limitations, including:

The study is based on primary data obtained through direct interviews with staff and the Human Resources (HR) section of PT Coca Cola Bottling Company Indonesia Medan.
The study only focuses on the accounting treatment of fixed assets and does not consider other aspects of financial accounting.
The study is limited to PT Coca Cola Bottling Company Indonesia Medan and may not be applicable to other companies.

Future Research

Future research should focus on the following areas:

The impact of the accounting treatment of fixed assets on the financial performance of companies.
The effect of the depreciation method on the financial statements of companies.
The role of fixed assets in the financial reporting of companies.

References

Indonesian Accounting Standards (SAK)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)
PT Coca Cola Bottling Company Indonesia Medan Annual Reports

Appendices

Appendix A: Interview Schedule
Appendix B: Data Collection Instrument
Appendix C: Data Analysis Procedure
Appendix D: Conclusion and Recommendations
Q&A: Accounting Treatment of Fixed Assets and Depreciation Methods in Accordance with Financial Accounting Standards at PT Coca Cola Bottling Company

Frequently Asked Questions

Q1: What is the accounting treatment of fixed assets in accordance with Financial Accounting Standards (SAK)?

A1: The accounting treatment of fixed assets in accordance with SAK involves the acquisition process, depreciation method, and presentation in financial statements. The company must determine the cost of fixed assets, including the cost of purchasing, transportation costs, installation costs, and other costs related to the preparation of fixed assets for use.

Q2: What is the depreciation method used by PT Coca Cola Bottling Company Indonesia Medan?

A2: The company uses the straight line method, which calculates shrinkage of the same amount each year. This method is used to allocate the cost of fixed assets over their useful life, ensuring that the asset is depreciated evenly.

Q3: How does PT Coca Cola Bottling Company Indonesia Medan record expenses during the use of fixed assets?

A3: The company records expenses during the use of fixed assets, such as repair and maintenance costs, to extend the useful life of fixed assets. These expenses are recorded as part of the cost of goods sold or as a separate expense in the income statement.

Q4: What is the procedure for recording withdrawal of fixed assets at PT Coca Cola Bottling Company Indonesia Medan?

A4: The company has a clear procedure for recording withdrawal of fixed assets, either because it is obsolete, damaged, or sold. This withdrawal is accompanied by the calculation of the residual value, if any.

Q5: How are fixed assets presented in the financial statements of PT Coca Cola Bottling Company Indonesia Medan?

A5: Fixed assets are presented in the balance sheet with the book value that has been reduced by the accumulation of depreciation. Information about the depreciation method used is also included in the notes to the financial statements.

Q6: What is the significance of accurate financial reporting in the management of fixed assets?

A6: Accurate financial reporting is essential to provide reliable information to stakeholders, such as investors, creditors, and other interested parties. It helps to ensure that the company's financial performance is accurately reflected, and that stakeholders have a clear understanding of the company's financial position.

Q7: How can companies improve the management of their fixed assets?

A7: Companies can improve the management of their fixed assets by implementing a structured procedure to determine the cost of fixed assets, using the depreciation method in accordance with the type of fixed assets and its useful life, recording expenses during the use of fixed assets, and having a clear procedure for recording withdrawal of fixed assets.

Q8: What are the benefits of using the straight line method for depreciation?

A8: The straight line method is a simple and easy-to-use method for depreciation. It ensures that the asset is depreciated evenly over its useful life, and that the cost of the asset is allocated in a consistent manner.

Q9: How can companies determine the residual value of a fixed asset?

A9: The residual value of a fixed asset can be determined by estimating the value of the asset at the end of its useful life. This can be done by considering the asset's condition, its remaining useful life, and its market value.

Q10: What are the limitations of this study?

A10: The study has several limitations, including the use of primary data obtained through direct interviews with staff and the Human Resources (HR) section of PT Coca Cola Bottling Company Indonesia Medan, and the focus on the accounting treatment of fixed assets only.

Conclusion

The accounting treatment of fixed assets and depreciation methods in accordance with Financial Accounting Standards (SAK) is a critical aspect of financial accounting. PT Coca Cola Bottling Company Indonesia Medan has implemented a structured procedure to determine the cost of fixed assets, used the straight line method for depreciation, and recorded expenses during the use of fixed assets. The company has also presented fixed assets in the financial statements with the book value that has been reduced by the accumulation of depreciation. This study provides a clearer picture of how large companies manage their fixed assets and can be used as a reference for other companies to improve their management of fixed assets.