InVacation: International Vocational Conference of Accounting Innovation

Analysis of Disclosure of Nonhalal Income Receipts on The Financial Statements of Islamic Commercial Banks and Its Conformity with PSAK 101

Afrysa Nur Intan Pratama — Thu, 30 Nov 2023 00:00:00 +0700

Purpose – The purpose of this study was to determine if the nonhalal income disclosures made on the financial statements of Islamic banks complied with PSAK 101 regarding the presentation of Islamic financial statements. This study focused on three Islamic Banks: Bank Syariah Indonesia Tbk, BCA Syariah Bank, and NTB Syariah Bank.
Method – The research employed a descriptive quantitative methodology that use secondary data from the official websites of Islamic Banks, including the financial statements of the three Islamic Banks for the years of 2021 and 2022.
Result – The analysis's conclusion demonstrated that, generally speaking, the three Islamic Banks revealed their non-halal income in compliance with PSAK 101.
Implication – Based on this research, NTB Syariah Bank still needs to recognize the balance of unallocated charity fund as a current liability in the Notes to the Financial Statements in accordance with PSAK 101, as has been done by BCA Syariah Bank and Bank Syariah Indonesia Tbk.

Corporate Governance and Disclosure of Sharia Compliance Based on AAOIFI Standards in Sharia Banks in Indonesia

Lis Yulitasari, Tulus Suryanto, Syamsul Hilal — Thu, 30 Nov 2023 00:00:00 +0700

Sharia compliance in Islamic banks refers to adhering to the principles and Fatwa issued by the National Sharia Council, as these Fatwa represent the embodiment of Sharia principles and regulations that must be followed in Islamic banking. The main objective of this research is to analyze the corporate governance and disclosure of Sharia compliance in Indonesian Islamic banks based on AAOIFI standards. This qualitative study utilizes a literature review method. The study's findings indicate that, in general, Islamic commercial banks have implemented several AAOIFI standards regarding Governance and Sharia compliance. However, there is still one AAOIFI standard that remains unimplemented by Islamic commercial banks. This standard pertains to the Internal Sharia Review, which should be incorporated into the bank's policy.

Examining Entrepreneurship Ecosystem in Higher Education: A Study of Existence in West Kalimantan

Arianto Arianto, Tashadi Tarmizi, Zulfikar Hanafi, Wahyudi Wahyudi — Thu, 30 Nov 2023 00:00:00 +0700

Purpose – This research underscores the pivotal role of student awareness and perception in shaping the entrepreneurial ecosystem within higher education institutions. It offers valuable insights into the dynamics of entrepreneurship in educational settings and provides guidance on creating supportive environments that encourage entrepreneurship among students.

Method – The data analysis in the research proposal employs a structured approach using partial least squares structural equation modeling (PLS-SEM) to generate robust results. PLS-SEM is chosen for its suitability with models featuring collinear factors. The analysis consists of two components: the measurement model, assessing relationships between constructs and indicators, and the structural model, examining connections between independent and dependent variables. The analysis includes considerations like internal consistency, convergent validity, discriminant validity, collinearity, path coefficient significance, R2 values, effect size, and predictive relevance. Hypotheses are tested using significance testing with t-values and p-values, and additional hypotheses undergo bootstrapping computations of PLS-SEM path coefficients. This holistic approach ensures statistically sound results directly aligned with research objectives, effectively addressing the research question.

Result –This research explores the factors that contribute to the entrepreneurial ecosystem within higher education institutions, focusing on West Kalimantan. It reveals that student awareness and perception of entrepreneurship significantly impact the growth and sustainability of this ecosystem. The study emphasizes the importance of student-driven efforts in fostering entrepreneurship. Faculty involvement is less significant than student awareness and perception, suggesting a student-centered approach to entrepreneurship education. The availability of resources and support, as well as student participation in collective entrepreneurial activities, also positively impact student awareness and perception of entrepreneurship. Institutions should consider providing these resources and opportunities to foster a more entrepreneurial-friendly environment. However, a counterintuitive discovery emerged regarding asset development strategies' impact on student awareness and perception. The research suggests that an exclusive focus on asset development for startups may not significantly influence student awareness and perception.

Implication –The implications of these findings are significant, emphasizing the need for initiatives aimed at increasing student awareness and positive perceptions of entrepreneurship. Institutions should reevaluate faculty roles and prioritize student-driven endeavors that promote entrepreneurship. A tailored approach to entrepreneurship education and ecosystem development is crucial, considering the unique needs and preferences of students and being adapted to the local context.

Strategies to Create Sharia-Based Competitive Advantage for SMEs in The Era of Industrial Revolution 4.0

Mutiara Eka Putri, Tulus Suryanto, Hanif Hanif — Thu, 30 Nov 2023 00:00:00 +0700

Small and medium enterprises (SMEs) play a vital role in the Indonesian economy. However, they face challenges in maintaining competitiveness during the Industrial Revolution 4.0. Integrating sharia values in business strategy could become a key competitive advantage for SMEs. This study aims to analyze sharia-based competitive strategies for Indonesian SMEs in the era of Industrial Revolution 4.0. An exploratory qualitative approach is utilized by conducting interviews and focus group discussions with experts in sharia economy as well as owners of Islamic-based SMEs. The findings reveal that applying principles of Islamic business ethics, utilizing Islamic financial schemes, adopting halal and green process standards, and integrating information technology with spiritual values are prominent strategies to achieve sustainable competitive advantage. The results also highlight the importance of strong leadership, robust Islamic business networks, competent human capital, and product innovation. A competitive strategy model is formulated to guide SMEs in building sharia-based competitiveness to seize opportunities in the digital economic landscape. This research provides practical and scholarly contributions toward strengthening the Islamic economy system and enhancing the competitiveness of Indonesian SMEs to realize national economic growth. Further studies can test the proposed model empirically across various industries and regions.

Public Preference toward Telecommunication Providers in Indonesia and Its Influence on Company Financial Performance

Wahyudi Wahyudi, Irma Andriani, Elsa Sari Yuliana — Thu, 30 Nov 2023 00:00:00 +0700

Purpose – This study aims to analyze and compare the financial performance of two main competitors in the telecommunications industry in Indonesia, namely Indosat and XL Axiata. Financial performance is assessed based on profitability ratios (gross profit margin and net profit margin) and activity ratios (total assets turnover and fixed assets turnover). This study also aims to compare customer preferences for the two companies with their financial performance.

Method – This research uses a comparative descriptive method to compare the financial performance of Indosat and XL Axiata based on profitability and activity ratios. Secondary data was taken from the annual financial reports of both companies at www.idx.co.id.

Result – Even though the public prefers XL Axiata, financial data for 2019-2022 shows that Indosat has superior financial performance. It shows that consumers' choice of telecommunications providers does not always align with the company's financial performance.

Result – Even though the public prefers XL Axiata, financial data for 2019-2022 shows that Indosat has superior financial performance. It shows that consumers' choice of telecommunications providers does not always align with the company's financial performance.

Implication – The research results show that telecommunications companies' customer preferences and financial performance are not always comparable. Further research is needed to uncover the factors influencing this disproportionality, perhaps through qualitative methods such as in-depth interviews.