Revenue And Expense Recognition, Measurement and Reporting In a Telecommunication Company Case Study: PT. Excelcomindo Pratama

Abstract

This study is aimed to describe the way PT. Excelcomindo Pratama recognizes, measures, and reports its revenues and expenses under the formal businessfinancial accounting procedure. In this study the researcher employs an appropriate problem seeking procedure in order to identify correctly the real and actual problem being faced by the Company in the area offinancial accounting by choosing two subfocuses: (I) revenue recognition, measurement, and reporting: and (2) expense recognition, measurement, and reporting. Moreover, the qualitative study method with a case study approach had been considered as the most appropriate way to answer correctly the research questions raised during the preliminary field observation. Based on the reseach questions, the majorpurposes ofthis study include (I) to know how PT Excelcomindo Pratama recognizes, measures, arid reports its existing revenue and expense, and (2) to reveal how the company's treatment of revenue and expense compares to how revenue and expense are treated in the Indonesian Financial Accounting Standards. Thestudy may contribute both practical andacademic settings where humanneeds exist anddevelop over time. Furthermore, some Company's relevant persons and current documents had been selected as the study's major data resources. To collect the required data from those data resources, both interview and document guides as the main study instruments had been employed to gather the empirical data and information neededfor the study analysis. The domain analysis had been employed as the data analysis technique suitable to run from the very general and huge data arrive on some factual and relevant sub themes and compiled into a theme as the study title: "Revenue and expense recognition, measurement, and reporting ". Finally, some crucial study findings derived from the field data analysis completely answer the research questions, include (I) the empirical description on the way the Company recognizes, measures, and reports its revenue and expense, and (2) the Company's compliance to the Indonesian Financial Accounting Standard (PSAK) in financial accounting management.