The Role of the Consistency Principle in Recognition of Income Method on the Income Statement at PT. Indo Zinc Diecasting in Gresik

Abstract

Purpose: to determine the role of the principle of consistency in the method of revenue recognition on the income statement.

Design/methodology/approach: This research approach uses a descriptive method, which describes the actual situation that occurs in the company for analysis using the applicable theory. While in this study the method used by the author is to use a qualitative method

Findings: This result affects the net profit obtained by the company because of the unrecorded income and expenses. From the evidence above, it can be seen that with the method of recognizing revenues and expenses at the time of sale and adjustments to revenues and expenses that have not been recognized, they can be presented fairly in the financial statements.

Practical implications: intensify the recognition of revenues and expenses at the time of sale and adjustments for unrecognized revenues and expenses

Originality/values: This paper is original

Paper types: research sense