Accounting and Profit Management Records in Banking Companies During the COVID-19 Pandemic
Abstract
A company’s management team is responsible for measuring its financial performance and assessing the operational needs for utilizing the company resources based on its ability to generate profits. The ongoing COVID-19 pandemic made it imperative for the banking sector to implement effective profit management strategies so that their financial position remains stable, considering that there are several government policies regarding the other types of funds. This study intended to examine the accounting and profit management practices applied by the banking sector companies in Indonesia during the COVID-19 pandemic. Using a qualitative descriptive method, the researchers extracted data from the online Indonesia Stock Exchange (IDX). A sample of 13 banking companies was selected. Data analysis was done using narrative study techniques based on theoretical assumptions by analyzing existing documents. The majority of banks studied in this research applied accrual-based accounting records because of their relationship to income recognition. Profit management was implemented to maintain financial performance and tax savings.
Keywords: accounting record-keeping, profit management
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