The Impact of the Implementation of PSAK 73 on Leases: Financial Statement Relevance, Financial Performance and Tax Avoidance

Abstract

Abstract :  The accounting treatment for leases has changed with the issuance of PSAK 73 and is effective since January 1, 2020. PSAK 73 is a new accounting standard that adopts the old IFRS 16 policy and regulates how an asset is recognized, measured, presented and disclosed in the Financial Statements. This literature study article is based on previous research or relevant research by reviewing the impact of the application of PSAK 73 on leases on the relevance of financial statements, financial performance and tax avoidance. The purpose of writing this literature study is to build hypotheses from the application of PSAK 73 on leases to be used in further research. The method used in writing this article is the library research method which is sourced from online media including google scholar, Mendeley and other academic online media The results of writing this literature study are: 1) the impact of the application of PSAK 73 on leases on the relevance of financial statements so that it can make the policies taken by the company appropriate, 2) the impact of the application of PSAK 73 on leases on financial performance on asset capitalization which causes significant changes in the Financial Statements, and 3) the impact of the application of PSAK 73 on leases on tax avoidance in the implementation of tax rules on leases, especially on fiscal corrections and income tax calculations.