The Impact of Implementing PSAK 116 on the Financial Performance of Transportation Sub-Sector Companies Listed on the Indonesian Stock Exchange

Abstract

The process of aligning Indonesian accounting standards 
with International Financial Reporting Standards (IFRS) is 
currently ongoing in Indonesia. On January 1, 2020, 
Indonesia implemented PSAK 73 (currently Named 
PSAK.116), an adaptation of IFRS 16 specifically for lease 
accounts. The adoption of this PSAK profoundly impacts 
companies that primarily acquire their assets through lease 
arrangements. Conversely, numerous firms in the 
Transportation Sub Sector in Indonesia often use leasing as a 
means of obtaining their assets. Additionally, it includes four 
measured financial ratios: solvency ratio, profitability ratio, 
liquidity ratio, and bankruptcy risk. This study employs 
quantitative descriptive research methodologies, applying 
financial report data from transportation companies The 
data covers the years 2017 until 2019, representing the 
period before to the implementation of PSAK 116. 
Additionally, data from the years 2020 until 2022 is included 
to represent the period of PSAK 116 implementation. The 
findings of this study indicate that there are not significant 
differences in solvency ratios, profitability ratios, liquidity 
ratios and bankruptcy risk before and after the adoption of 
PSAK 116 in transportation sub-sector companies listed on 
the Indonesia Stock Exchange. Consequently, the adoption of 
PSAK 116 is unlikely to result in significant changes to the 
Company's financial statements.