FORESTRY ACCOUNTING IN INDONESIA

Abstract

Forest is one of natural resources owned by nations in order to be used for public welfare. Therefore the use of forest should be directed for public welfare, yet it ought to focus on ecosystem, environmental, management, and productivity sustainability aspects. Accounting is not only be used as a tool to report and capture forest management, yet it should also be used to present forest management accountability report. This paper explains how both forestry accounting standard and practices in Indonesia. Forest produce agricultural products when they are harvested and become biologic assets during their growing period, which are best-suited to International Accounting Standard 41 about Agriculture for its accounting. Regulator has issued accounting guidance in form of ministerial regulation that sets out reporting issues. However, research result shows companies that hold concession permits have not yet reported and made any disclosures that conform to accounting guidance. In addition, regulator does not evaluate reporting obedience, so that there is no incentive for companies to obey to the existing guidance.