Implementation of Financial Management and Financial Accounting
Standard Number 69 Concerning Agricultural Atvillage-owned
Enterprises
Teguh Widodo
1
, and Suharyono
2
1
International Business Administration, State Polytechnic of Bengkalis, BathinAlam Street, 25711
2
Public Financial Accounting, State Polytechnic of Bengkalis, BathinAlam Street, 25711
Keywords: Bumdes, Biological Assets, Management, Finance.
Abstract: PSAK 69 on Agriculture is effective as of January 1, 2018. However, given the many types of agriculture,
there are no specific guidelines that provide guidance on how to apply it to certain agricultural industries. The
purpose of this study is to analyze the application of financial management and application of biological
assets based on Financial Accounting Standards No. 69. The significance of changes in the treatment of
biological assets does not only lead to large business entities, but also BUMDes. This change in treatment
led to all business entities engaged in agriculture such as agriculture, plantations and fisheries being asked to
carry out a transformation in the preparation of their financial statements. But the concern is how the
BUMDes readiness, especially those engaged in the industry. The second problem is that BUMDes has not
applied SFAS 69 in its financial reporting. This is due to the absence of instructions and direction from the
Village in making financial reports on the given capital.So the BUMDes reports in the format that the village
facilitator has. Based on the list of fixed assets provided, there is no record of assets either garden land or
plants or biological assets in the BUMD es asset list. The third problem is recording accounting and preparing
financial statements manually using the Excel application. Not yet computerized with accounting software.
So that the possibility of errors or errors will be easier to occur. With this research, it is expected to be a
guideline for BUMDes who have an agricultural business in managing their business and reporting financial
reports in accordance with applicable regulations.
1 INTRODUCTION
1.1 Background
To support the development of BUMDes businesses
in Riau Province, in 2019 the Riau Provincial
Government provided business capital assistance for
the development of Village-Owned Enterprises
(BUMDes). BUMDes who will get assistance amount
to 1,591 with a total budget of 318.2 billion. Each
BUMDes received stimulant funds to develop a
business unit of Rp 200,000,000.
Some BUMDes in Bengkalis Regency use the
funds to develop business units in the field of
Agriculture. Among them BUMDes Lubuk Muda,
has a business unit in the field of holding agriculture
that grows vegetables and fruits, such as: chilies,
long beans, beans, honey guava and Crystal guava.
BUMDes Tanjung Belit, has a business unit in the
palm oil sector.
Than BUMDes Kuala Alam has a pineapple
farming business unit. BUMDes Pambang Baru has a
chilli farming business unit. Meanwhile BUMDes
Bukit Kerikil has a cattle farm business.
The Indonesian Accountants Association (IAA)
as part of the International Federation of Accountants
together with the government in 2008 announced the
use of International Standards or better known as
IFRS (International Financial Reporting Standards).
The years 2006 to 2008 were the initial stages of
convergence of Financial Accounting Standards
(FAS) in the form of Statement of Financial
Accounting Standards (SFAS) to International
Accounting Standards (IAS).
SFAS No. 16 concerning Fixed Assets and Other
Assets was passed by IAA on May 29, 2007 which
was subsequently revised on November 29, 2011, is
Widodo, T. and Suharyono, .
Implementation of Financial Management and Financial Accounting Standard Number 69 Concerning Agricultural Atvillage-owned Enterprises.
DOI: 10.5220/0010355301650173
In Proceedings of the 2nd International Conference on Applied Economics and Social Science (ICAESS 2020) - Shaping a Better Future Through Sustainable Technology, pages 165-173
ISBN: 978-989-758-517-3
Copyright
c
 2021 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
165

LIST OF PLANTATION
UNITS IN VE N TO R Y BUMDes: Kencana M a ndiri
Village: Tanjung
Belit
District:
Bengk a li s
Month: December
2019
No Inventory T ype Unit Price @ A m ount Economis
A g e
D epreciation Use
A g e
D epreciation Book V alue
1 Electric Spray
1 800.000 800.000 36 22.222 5 111.111 688.889
2 Dodos knife
2 200.000 400.000 36 11.111 5 55.556 344.444
3 Basket
2 300.000 600.000 36 16.667 5 83.333 516.667
4 Egrek knife
2 700.000 1.400.000 36 38.889 5 194.444 1.205.556
5 Tojok
2 50.000 100.000 36 2.778 5 13.889 86.111
Total
3.300.000 91.667 458.333 2.841.667
Know by: Made by:
Juliadi Putra Z ubaidah
Head of Unit T re as urer
Figure 1. List of Fixed Assets
one of the IAI products that is based on IAS. The
SFAS No. 16 regulates how to recognize, record and
assess fixed assets and other assets. One of the other
regulated assets is Biological Assets in the form of
Agriculture. However, the regulation of Biological
Assets in mid- 2015 is regulated in a separate SFAS,
namely SFAS No. 69 on Agriculture and was
endorsed in December 2015.
SFAS 69 on Agriculture was effective as of
January 1, 2018. However, considering the many
types of agriculture, there are no specific guidelines
that provide guidance on how to apply it to certain
agricultural industries (Trina, 2017).
Significance of changes in the treatment of
biological assets not only leads to large business
entities, but also BUMDes which is a form of small
or medium business entities (Suharyono, 2020). This
change in treatment led to all business entities
engaged in agriculture such as agriculture, plantations
and fisheries being asked to carry out a The second
problem is that BUMDes has not applied SFAS 69
in its financial reporting. This is due to the absence
of instructions and direction from the Village in
making financial reports on the given capital. So the
BUMDes reports in the format that the village
facilitator has. Based on the list of fixed assets
provided, there is no recording of assets either
garden land or plants or biological assets in the
BUMDes asset list as in Figure 1
Table 1: Balance Sheet Reports Before the Implementation
of PSAK 69
ICAESS 2020 - The International Conference on Applied Economics and Social Science
166

The third problem is the recording of accounting
and preparation od financial statements that are done
manually using Excel application. Not yet
computerized with accounting software. So that the
possibility of errors will be easier to occour.
Table 2: Income Statement Before the Implementation of
PSAK 69
1.2 Formulation of the Problem
Based on the background described above, the
formulation of the problem in this study are as
follows:
1. How is BUMDes financial management
developing business in agriculture?
2. How is the recognition, measurement and
disclosure of biological assets based on SFAS
Number 69 at BUMDes in Bengkalis Regency?
3. How about financial accountability and
presentation of BUMDes financial statements for
capital assistance from the Riau Provincial
Government?
1.3 Research Limits
The scope of the limitation in this research is that
this study only analyzes the management and
presentation of BUMDes financial statements that
utilize stimulant funds from the Riau Provincial
Government to develop business units in the field of
Agriculture. While for other business units, such as:
UED-SP, trade and services are not the focus of this
research.
1.4 Research Objectives
The purpose of the research conducted by researchers
of this research proposal can be
explained in full as
follows:
1. To implement financial management in
accordance with established financial guidelines.
2. To apply recognition, measurement and
disclosure of biological assets based on Financial
Accounting Standards Number 69 at BUMDes in
Bengkalis Regency.
3. To implement the preparation of financial
statements using accounting software that is
accountable and transparent.
2 LITERATURE REVIEW
Agricultural activity is the management of biological
transformation and biological assets by entities for
sale or conversion into agricultural products or
additional biological assets. Biological assets
(biological assets) are animals or living plants. Costs
to sell (the cost to sell) are incremental costs directly
attributable to the disposal of assets, not including
financing costs and income taxes. A group of
biological assets (the group of biological assets) is a
combination of animals or similar living plants.
Harvest (harvest) is the release of products from
biological assets or termination of the life process of
biological assets. Agricultural products are products
that are harvested from biological assets belonging
to the entity. A productive plant (bearer plant) is a
living plant that:
1. Used in the production or supply of agricultural
products.
2. It is expected to produce products for periods of
more than one period.
3. It has a very rare possibility to be sold as an
agricultural product, except for the sale of
incidental scraps.
The biological transformation consists of the
process of growth, degeneration, production, and
progression which results in qualitative and
quantitative changes in biological assets. The
following table presents the biological assets,
agricultural products, and products that are processed
after harvest.
Implementation of Financial Management and Financial Accounting Standard Number 69 Concerning Agricultural Atvillage-owned
Enterprises
167

Table 3: Table of Biological Assets, Agricultural Products, and Products
For BUMDes engaged in the plantation,
agriculture, fishery or livestock industries, a specific
type of asset will emerge in a series of asset
classifications that it reports. Specific assets that make
the difference are biological assets. Biological assets
are entity assets in the form of animals and or plants
(SFAS 69). Specific characteristics inherent in
biological assets lie in the process of transformation
or biological changes to these assets until the time
these assets can be consumed or managed further by
the entity (Farida, 2013). These special characteristics
are also inherent in the plantation industry entities as
objects in this study. Biological transformation is a
process of growth, degeneration, production, and
procreation caused by qualitative and quantitative
changes in living things and produce new assets in the
form of agricultural products or additional biological
assets of the same type (Cahyani, 2014). Biological
assets, especially in the form of plantation crops, can
be classified as follows (SE Bapepam, 2002): annual
crops, perennials, plants that can be harvested more
than once but not perennials, horticultural crops, non-
horticultural crops, immature plants, and produce
plants.
2.1 Prior Research
Utomo (2014) research results show that biological
assets are plants and animals that undergo a biological
transformation. The biological transformation
consists of the process of growth, degeneration,
production and procreation that causes qualitative
and quantitative changes in animal and plant life,
can produce new assets that are realized in
agricultural produce or in the form of additional
biological assets in the same class. Because it is
undergoing a biological transformation,
measurements are needed that can show the value of
the asset fairly in accordance with its contribution in
generating an economic profit stream for the
company. IASC (International Accounting Standards
Committee) has published IAS 41 on Agriculture
which regulates biological assets. In SFAS (Statement
of Accounting Standards) there are no standards
governing the accounting treatment of biological
assets. This research was conducted at PT. Wahana
Graha Makmur Surabaya. The purpose of this
research is to find out how accounting treatment of
biological assets at PT. Wahana Graha Makmur
Surabaya based on IAS 41. In conducting this
research, the author bases the analysis based on the
literature relevant to the research topic as well as the
data obtained from the study site. The company
measures its biological assets based on their
acquisition value. Biological assets are measured at
cost and are presented on the balance sheet at book
value (acquisition cost less accumulated
depreciation). This is based on the consideration that
this value is more measurable so that the value
obtained is more reliable. And to achieve the
reliability of financial statements, companies must
make records related to biological assets.
Partiwi (2018) in his research in early 2016
Accounting Standards Board (ASB) issued an
agricultural SFAS-69 exposure draft in which this
PSAK was a full dedication from IAS-41 agriculture.
IAS-41 agriculture is an accounting standard intended
for agricultural entities in applying accounting for
their biological assets. 2018 is the year in which
Indonesia requires all agricultural entities to
implement the agricultural SFAS-69. This research
was conducted at PTPN XII Kalisanen, located in
ICAESS 2020 - The International Conference on Applied Economics and Social Science
168

Jember Regency. The purpose of this study is to
provide empirical evidence regarding the accounting
treatment of biological assets according to the
agricultural SFAS-69 compared to those in PTPN XII
Kalisanen. The results of this study are actually not
much difference between the agricultural SFAS-69
with the accounting treatment at PTPN XII
Kalisanen, but there are difficulties when the
measurement methods on the agricultural SFAS-69
based on the active market do not find the active
market.
3 RESEARCH METHODS
3.1 Research Stages
The complete stages of research activities can be
explained and seen in Figure 3, as follows:
1. Initial evaluation through field surveys.
2. Provides an understanding of the benefits of
financial reporting in accordance with the
provisions of Financial Accounting Standards.
3. Implementation and assistance in preparing
financial statements using the biological asset
approach in SFAS 69.
4. Providing training and preparation of financial
statement preparation, both directly and through
communication media.
5. Evaluate the results of training and mentoring that
has been done to evaluate the success of the
activities that have been carried out using simple
statistical calculations.
3.2 Research Location
The location of this research was carried out in
Bengkalis Regency, namely in BUMDes which runs
businesses in agriculture. One of the BUMDes that
we surveyed earlier and obtained financial report data
is BUMDes Kencana Mandiri having its address at
Tanjung Belit Village, Siak Kecil District, Bengkalis
Regency, Riau.
3.3 Measurement Parameters and
Observation
The process of change is observed/measured from
the development of biological assets, namely:
1. Biological assets
Biological assets are assets in the form of living
animals and plants. Biological assets are assets
that are mostly used in business activities in the
framework of the management of biological
transformation of biological assets to produce
products that are ready for consumption or still
require further processing.
2. Recognition of biological assets
Biological assets in financial statements can be
recognized as either current assets or non-current
assets in accordance with the period of biological
transformation of the relevant biological assets
(SFAS 69).
3. Measurement of biological assets
Biological assets are measured at
initialrecognition and at the end of each reporting
period at fair value fewer costs to sell, except for
the case described where fair value cannot be
measured reliably.
4. Disclosure of biological
assets
BUMDes discloses the combined gains or losses
arising during the period when initial recognition
of biological assets and agricultural products, and
from changes in fair value fewer costs to sell
biological assets (SFAS 69).
Figure 3: Stages of Research Activities
Implementation of Financial Management and Financial Accounting Standard Number 69 Concerning Agricultural Atvillage-owned
Enterprises
169

Figure 4: Plantation Biological Assets.
3.4 Research Models
The model used in this study is applied research
(applied research) because this study intends to find
out and describe the application of agricultural
accounting in BUMDes engaged in agriculture.
3.5 Research Design
The overall research design on biological assets can
be understood in Figure 4.
In summary, the stages of transformation of oil
palm are started from seedlings in the form of palm
fruit which are then sown to become palm oil
seedlings. After the palm seedlings are 3-4 months
old, the palm seedlings are moved to a wider planting
area that has already been prepared. Furthermore, the
oil palm plantations go through a process of
treatment in the form of weeding, fertilizing and
watering into plants that learn to bear fruit known as
sand fruits which usually have started from the age
of 3-3.5 years. In the 4th year oil palm has begun to
produce perfect fruit-producing FFB, and will stop at
the age of 20-25 years. The next stage returns to the
initial process of replanting young plants from
nurseries. This process is what will subsequently
receive treatment as a biological asset (DP, 2019).
3.6 Data Collection and Analysis
Techniques
Data analysis in this research was conducted
descriptively to analyze the data carried out by
describing, managing, describing and interpreting the
results of research with words and sentences as
answers to the problems studied. The data analysis
in this study was conducted by describing the results
of interviews before and after the application of SFAS
69, managing data into data tabulation, describing the
research process and the results of interviews into
the discussion in this study and finally interpreting the
results of this study by linking theories and data
available with the results of the interview.
4 RESULTS AND DISCUSSION
4.1 Application of Financial
Management in Accordance with
Established Financial Guidelines
BUMDes Kencana Mandiri has an oil palm plantation
with an area of 7 hectares. The number of oil palm
plants managed is as many as 650 trees, with details
of 400 trees that have already produced and are
included in the scope of SFAS 16 regarding fixed
assets. Whereas 250 trees are immature plants and fall
within the scope of SFAS 69 on agriculture.
Biological assets in the form of oil palm plants that
have already been produced or that have not yet
been produced will be presented in the BUMDes
financial statements as fixed assets.
Agricultural products are products harvested from
biological assets recognized as inventories.
Agricultural products harvested from BUMDes'
biological assets are measured at fair value fewer
costs to selling at the point of harvest. Measurements
of this kind are the costs of that date when applying
SFAS 14 regarding inventories.
4.2 Application of Recognition,
Measurement and Disclosure of
Biological Assets based on
Financial Accounting Standards
Number 69 at BUMDes in
Bengkalis Regency
As an entity that controls the biological assets
BUMdes Kencana Mandiri must book according to
applicable financial standards. Measurement of
biological assets is the calculation of the value of
ICAESS 2020 - The International Conference on Applied Economics and Social Science
170

biological assets owned by an entity starting from
the purchase value of biological assets up to the costs
incurred to obtain these biological assets.
(Suharyono, 2020) Following are measurements of
each biological asset.
The measurement of biological assets produces
starts from the calculation of the number of
productive plants owned by BUMDes, namely 400
trees. The fair value of oil palm seedlings is IDR
50,000 per polybag. While the costs incurred during
managing the crop are fertilizer costs, labor costs,
and costs for land preparation.
Table 4: Component of Biological Asset Cost of
Producing
Plants
No Description Total
1 Seedlings (400
p
olybags) 20,000,000
2 Fer
t
ilize
r
43,500,000
3 Lan
d
p
re
p
ara
t
ion 5,000,000
4 Wage 10,000,000
Total 78,500,000
For oil palm plants that have not produced yet in
BUMDes Kencana Mandiri, 250 trees are available.
The fair value of oil palm seedlings is IDR 50,000 per
polybag. While the costs incurred during managing
the crop are fertilizer costs, labor costs, and costs for
land preparation.
Table 5. Components of Biological Asset Cost for
Immature Plants
No Description Tota
1 Seeds (250
p
olybags) 12,500,000
2 Fer
t
ilize
r
11,500,000
3 Lan
d
p
re
p
ara
t
ion 4,000,000
4 Wage 8,000,000
Total 36,000,000
4.3 Application of the Preparation of
Financial Statements using
Accounting Software That Is
Accountable and Transparent
Based on the existing problems, the BUMDes
financial statements have been adjusted in accordance
with the application of SFAS 69. The financial
statements presented include the balance sheet and
income statement.
Table 6: Balance Sheet Report After the Application of
SFAS 69
BU
M
Des Kenca
n
a
M
andiri
The balance sheet
December 31, 2019
Asset
Current assets
Cash
2.924.000
Bank
1.273.696
Shopping Goods
42.680.000
Stock
950.000
Total Current Assets
46.877.696
Non-current Assets
Biological-Plant-Producing
Assets
78,500,000
Inventory
303,300,000
Ak Depreciation
(
825,000
)
Biological-Plant Asset Immature
36,000,000
Total Non-current Assets
416,975,000
Total assets
463,852,696
EQUITY AND OBLIGATIONS
The obligation
Other Party Debts
200,000
Promotion Debt
516,050
Other Reserve Debt
1,032,100
SHU Allocation PADes
Total Obligations
1,748,150
Equity
Equity capital
346,000,000
Capital From Other Parties
Increase in the capital due to
reco
g
nition of
b
io
l
o
g
ical assets
114,500,000
Profit Accumulation
1,604,546
Total Equity
462,104,546
Total Equity and Liabilities
463,852.696
Table 7: Income Statement Before the Implementation of
SFAS 69.
Implementation of Financial Management and Financial Accounting Standard Number 69 Concerning Agricultural Atvillage-owned
Enterprises
171

The positive impact of the recognition of
biological assets that were not previously recorded in
the BUMDes financial report, then the value of equity
experienced a significant increase of Rp 114,500,000.
This increase is due to the recognition of biological
assets both in the form of mature and immature
plantations. The importance of applying PSAK 69 to
the plantation business unit has helped BUMDes in
presenting the financial reporting needed by the
Village. The results of this study are in line with DP
(2019) which shows an increase in understanding of
the importance of financial statements in general and
the production of simple financial reports for the palm
oil industry.
5 CONCLUSION AND
CONTRIBUTION
5.1 Conclusion
In this section we will explain the conclusions
obtained from the analysis in previous Sections.
Conclusions of the study results are based on the
research analysis to know how application of
financial management in accordance with established
financial guidelines, application of recognition,
measurement and disclosure of biological assets
based on Financial Accounting Standards Number 69
at BUMDes in Bengkalis Regency, furthermore how
application of the preparation of financial statements
using accounting software that is accountable and
transparent.
The conclusions of the research results that were
conducted completely can be explained as follows:
1. The BUMDes Kencana Mandiri financial report
is in accordance with SFAS No. 69 concerning
agriculture, and
2. The application of SFAS 69 in BUMDes Kencana
Mandiri has an impact on the increase in
BUMDes assets due to the recognition of
biological assets.
5.2 Contribution
5.2.1 Theoretical Contribution
The theoretical contribution of the research which was
conducted are as follows:
1. BUMDes management understands the urgency of
preparing financial statements accordance with
applicable Accounting Standard; and
2. BUMDes financial statements become more
transparent and accountable.
5.2.2 Managerial Contribution
Managerial contribution of the research which was
conducted are as follows:
1. BUMDes management get an understanding of
the application of financial management in
accordance with established financial guidelines.
2. Through training and mentoring activities in the
preparation of financial statements carried out,
BUMDes management at Bengkalis Regency
must be able to examine and manage carefully
the application of Recognition, Measurement and
Disclosure of Biological Assets based on
Financial Accounting Standards Number 69.
3. It is expected that the Riau Provincial Government
will give high appreciation to BUMDes in Riau
Province who can develop and manage biological
assets properly in accordance with SFAS Number
69.
4. The results of this study are expected to be used
as a reference or consideration for BUMDes
management regarding the importance of
managing biological assets owned by BUMdes
based on financial accounting standards in SFAS
Number. 69.
5.3 Limitation
This research has several important limitations, in
the methodology and access to the distance between
the locations of BUMDes Kencana Mandiri partners
and researchers living in different islands, where
BUMdes Kencana Mandiri partners are located in
TanjungBelit Village on Sumatra Island and
researchers residing on Bengkalis Island. This
condition sometimes becomes an obstacle in the
implementation of intensive assistance activities to
BUMDes Partners.
ACKNOWLEDGEMENTS
This research was supported by the Center for
Research and Community Service (P3M) Bengkalis
State Polytechnic (Polbeng). We Thank the P3M
Leaders and Polbeng Director who have allowed us
the opportunity to get Research grants sourced from
Non-Tax National Revenues (PNBP) from the
campus so that we can carry out and complete our
research activities in 2020. Hopefully going forward
through this institution will continue to provide fresh
ICAESS 2020 - The International Conference on Applied Economics and Social Science
172

funding support to all lecturers and education staffs
of Polbeng with a research grant competition scheme
so that the research climate of lecturers and education
staffs on this campus continues to develop rapidly and
progress.
REFERENCES
Cahyani, R. C., & Aprilina, V. (2014).Evaluation of the
application of SAK ETAP in the reporting of biological
assets in Bogor Superior Farm. JRAK: Jurnal Riset
Akuntansi dan Komputerisasi Akuntansi, 5(1), 14-37.
DP, E. N., Rusli, R., & Haryani, E. (2019, September).
Membumikan penyusunan laporan keuangan industri
perkebunan kelapa sawit menggunakan pendekatan
asset biologis berdasarkan PSAK 69. In Unri
Conference Series: Community Engagement (Vol. 1,
pp. 168-179).
Farida, I. (2013). Analisis Perlakuan Akuntansi Aset
Biologis Berdasarkan International Accounting
Standard 41 Pada PT. Perkebunan Nusantara VII
(Persero). Jurnal Akuntansi AKUNESA, 2(1).
I. A. I., & Indonesia, I. A. (2009). Standar Akuntansi
Keuangan. Jakarta, Salemba Empat.
Maruli, S., &Mita, A. F. (2010).Analysis of the fair value
and historical value approaches in valuing biological
assets in agricultural companies: A critical review of
IAS adoption plans 41. Simposium Nasional Akuntansi
XIIIPurwokerto, 1-38.
Pratiwi, W. (2018).Analysis of Accounting Treatment for
Biological Assets based on Agricultural PSAK-69 at
PT. Perkebunan Nusantara XII Kalisanen, Jember
Regency. UNEJ e-Proceeding, 140-150.
Circular Letter of the Chairman of Bapepam No SE-02 / PM
/ 2002 concerning Reporting and Disclosure of Issuers
or Companies' Financial Statements.
Suharyono, S. (2020).Evaluasi Penggunaan Dana Desadan
Alokasi Dana Desa. Jurnal Ilmiah Universitas
Batanghari Jambi, 20(2), 648-651.
Suharyono, S. (2020). Analisis Kinerja Pemerintah Provinsi
Di Indonesia. Jurnal Neraca: Jurnal Pendidikan dan
Ilmu Ekonomi Akuntansi, 4(1), 11-25.
Trina, Z. I. (2017). Analisis perlakuan akuntansi dan
deplesi aset biologis berdasarkan IAS 41 pada
perusahaan peternakan: Studi kasus pada CV.
Milkindo Berka Abadi Kepanjen (Doctoral dissertation,
Universitas Islam NegeriMaulana Malik Ibrahim).
Utomo, R., & Khumaidah, N. L. (2014). Perlakuan
Akuntansi Aset Biologis (Tanaman Kopi) Pada PT.
Wahana Graha Makmur-Surabaya. GEMA EKONOMI
(Jurnal Fakultas Ekonomi), 3(1), 85-95.
Implementation of Financial Management and Financial Accounting Standard Number 69 Concerning Agricultural Atvillage-owned
Enterprises
173