Authors retain the copyright without restrictions for their published content in this journal. HSSR is a SHERPA ROMEO Green Journal.
Publishing License
This is an open-access article distributed under the terms of
ACCOUNTING STANDARDS IN CHURCH FINANCIAL MANAGEMENT
Corresponding Author(s) : Moni Wehelmina Muskanan
Humanities & Social Sciences Reviews,
Vol. 7 No. 6 (2019): November
Abstract
Purpose: This paper aims to assess accounting application in church financial reporting.
Methodology: There were two main stages of this research methodology. Firstly, an extensive literature study was to develop the framework of the relationship between religion and accounting and to find the research gap to be fulfilled in theoretical based. Secondly, the technical research method included a case study approach to examine the current application of the church financial report and the PSAK 45 accounting application.
Results: There are significant discrepancies between the Treasury Report made by the church and the financial statements made under PSAK 45. The information under PSAK 45 provides more relevant information to the stakeholders to assess how the church actualizes the theology values into its activities. Firstly, the PSAK 45 Activity Report reveals the information for the stakeholders, particularly the management, to evaluate the effect of money proportioned into church activity. Secondly, the reports show how the direct and indirect costs are allocated into services activities to assess, how much direct cost has been allocated to successfully implement the mission through the roles. Thirdly, the reports tell stakeholders how the church manages its activities effectively to serve not only the congregations but also the wider society in order to attain its vision. Finally, the balance sheet reveals the increasing or decreasing value of net assets and how the assets are effectively used – or not.
Implications: The benefits of the implementation of the accounting standard to help the church to implement their sacred mission and criticizes the opponent's views that perceive accounting as profane, and irrelevant as well as irreverent. It provides significance that accounting standards should be mandatory in Indonesia for all non-profit groups.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Afifudin, H. B., & Siti-Nabiha, A. (2010). Towards Good Accountability: The Role of Accounting in Islamic Religous Organizations. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, Vol.4, No.6.
- Benu, F. L. (2017). Pandangan Gereja Terhadap Pembngunan Ekonomi dan Kemiskinan. Lokakarya: Ajaran Sosial Gereja. Kupang, Nusa Tenggara Timur, Indonesia: SINODE GMIT.
- Bigoni, M., Gagliardo, E. D., & Funnel, W. (2013). Rethinking the Sacred and Secular Divide. Auditing & Accountability Journal, Vol.26., Iss.4. pp.567-594. https://doi.org/10.1108/09513571311327462 DOI: https://doi.org/10.1108/09513571311327462
- Booth, P. (1993). A Research Framework and Agenda. Accounting, Auditing & Accountability, Vol.6. Iss.4. https://doi.org/10.1108/09513579310045684 DOI: https://doi.org/10.1108/09513579310045684
- Carmona, S., & Ezzamel, M. (2006). Accounting and Religion: A Historical Perspective. Accounting History, Vol.11. No.2. https://doi.org/10.1177/1032373206063109 DOI: https://doi.org/10.1177/1032373206063109
- Cordery, C. (2015). Accounting History and Religion: A Review of Studies and A Research Agenda. Accounting History, 1-34, https://doi.org/10.1177/1032373215610590 DOI: https://doi.org/10.1177/1032373215610590
- GMIT Kota Baru Kupang/ECCT Kota Baru Kupang. (2016). Laporan Perbendaharaan Gereja. Kupang: GMIT Kota Baru.
- H.J.Irvine. (1998). Pass the Plate Around Again: A study of Budgeting in a Local Church. Australia and New Zealand Third Sector Research (ANZTSR0 Conference. Melbourne: University of Wollongong, Research Online, Faculty of Commerce (Archive).
- Hardy, L., & Ballis, H. (2005). Does One Size Fit All? the Sacred and Secular Divide Revisited with Insights from Niebuhr's Typology of Social Action. Accounting, Auditing & Accountability Journal, Vol.18. Iss.2. pp.238-254. https://doi.org/10.1108/09513570510588742 DOI: https://doi.org/10.1108/09513570510588742
- Ikatan Akuntan Indonesia. (2015). Pernyataan Standar Akuntansi Keuangan 45, Revisi 2015. Jakarta: IAI.
- Irvine, H. (2005). Balancing Money and Mission in a Local Church Budget. Accounting and Accountability Journal, Vol.18. No 2. pp.211-237. https://doi.org/10.1108/09513570510588733 DOI: https://doi.org/10.1108/09513570510588733
- Irvine, H. (2011). From Go to Woe. Accounting, Auditing and Accountability Journal, Vol.24. Iss.7. pp.824-847. https://doi.org/10.1108/09513571111161611 DOI: https://doi.org/10.1108/09513571111161611
- Jacobs, K. (2004). Accounting and Accountability in the Ion Community. Accounting, Auditing & Accountability, Vol.17. No.3. pp.361-381. https://doi.org/10.1108/09513570410545786 DOI: https://doi.org/10.1108/09513570410545786
- Kreander, N., McPhail, K., & Molyneaux, D. (2004). God's Fund Managers: A Critical Study of Stock Market Investment Practices. Accounting, Auditing, and Accountability, Vol.17. No.3.pp.408-441. https://doi.org/10.1108/09513570410545803 DOI: https://doi.org/10.1108/09513570410545803
- Laughlin, R. .. (1988). Accounting in Its Social Context: An Analysis of the Accounting Systems of the Church of England. Accounting, Auditing & Accountability Journal, Vol.1. Iss.2. pp. 19-42. https://doi.org/10.1108/EUM0000000004622 DOI: https://doi.org/10.1108/EUM0000000004622
- Leiwakabessy, L. (2015). Analisis Penerapan Akuntansi Orgaisasi Nirlaba Entitas Gereja Berdasarkan PSAK 45 (Studi Kasus Gereja Masehi Injili di Minahasa Baitel Kolongan). Manado: Politeknik Negeri Manado.
- Lightbody, M. (2000). Financial Management Behaviour in A Church Organization. Accounting, Auditing & Accountability Journal, Vol.13. No.2. pp.156-174. https://doi.org/10.1108/09513570010323245 DOI: https://doi.org/10.1108/09513570010323245
- Llewellyn, E. B. (2012). Accounting and Accountability in Italian Social Provider. Accounting, Auditing & Accountability Journal, Vol.25. Iss.5. pp 806-834. https://doi.org/10.1108/09513571211234268 DOI: https://doi.org/10.1108/09513571211234268
- Majelis SINODE Gereja Masehi Injili di Timor (GMIT). (2012). Peraturan Pokok Perbendaharaan dan Pedoman Pengelolaan Perbendaharaan GMIT. Aturan GMIT. Kupang: SINODE GMIT.
- Majelis SINODE Gereja Masehi Injili di Timor (GMIT). (2015). Tata Gereja GMIT 2010 dan Perubaha Pertama 2015. Aturan GMIT. Kupang: SINODE GMIT.
- Memesah, M. (2013). Penerapan PSAK 45 Pada GMIM Efrata Sentrum Sonder-Kaitannya dengan Kualitas Informasi Laporan Keuangan. EMBA-Universitas Sam Ratulangi Manado, Vol.1.No.4.
- Mutch, A. (2016). Religion and Accounting Texts in Eighteenth-Century Scotland: Organizational Practices and a Culture of Accountability. Accounting, Auditing, & Accountability Journal, Vol.29.Iss.6. https://doi.org/10.1108/AAAJ-07-2014-1753 DOI: https://doi.org/10.1108/AAAJ-07-2014-1753
- Niebuhr, H. (2001). Christ and Culture. London: Faber & Faber.
- Parker, L. D. (2001). Reactive Planning in a Christian Bureaucracy. Management Accounting Research. https://doi.org/10.1006/mare.2001.0165 DOI: https://doi.org/10.1006/mare.2001.0165
- Parker, L. D. (2002). Budgetary Incrementalism in A Christian Bureaucracy. Management Accounting Research, DOI: 10.006/mare.2001.0171.
- Pontoh, C. (2013). Penerapan Laporan Keuangan Nirlaba Berdasarkan PSAK 45 Pada Gereja BZL. EMA-Universitas Sam Ratulangi Manado, Vol.1. No.3. ISSN 2303-1174.
- Putri, O. A. (2013). Transparansi Laporan Keuangan Pada Organisasi Keagamaan (Studi Kasus Pada Gereja Isa Almasih Genuk Indah di Semarang). Salatiga: Universitas Kristen Satya Wacana Salatiga.
- Quattrone, P. (2015). Governing Social Order, Unfolding rationality, and Jesuit Accounting Practices: A Procedural Approach to Institutional Logics. Administrative Science Quartely, Vol.60 93). pp.411-445. https://doi.org/10.1177/0001839215592174 DOI: https://doi.org/10.1177/0001839215592174
- Sanchez, J. B., & Funnell, M. W. (2015). War of the Business of God. Auditing & Accountability Journal, Vol.28, Iss.3. PP.434-459. https://doi.org/10.1108/AAAJ-01-2014-1588 DOI: https://doi.org/10.1108/AAAJ-01-2014-1588
- Tanui, P. J., Omare, D., & Bitange, D. J. (2016). Internal Control System for Financial Management in the Church: A Case of Protestant Churches in Eldoret Municipality, Kenya. European Journal of Accounting, Auditing, and Finance Research, Vol.4. No.6. pp 29-46.
- Tumiwa, K., Triyuwono, I., Ludigdo, U., & Rasmini, N. K. (2015). Faithful Reflection: The Accounting and Accountability Church Tortugas. Scientific Research Journal (SCIRJ), Vol.3. Iss.6. June, ISSN 2201-2796.
References
Afifudin, H. B., & Siti-Nabiha, A. (2010). Towards Good Accountability: The Role of Accounting in Islamic Religous Organizations. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, Vol.4, No.6.
Benu, F. L. (2017). Pandangan Gereja Terhadap Pembngunan Ekonomi dan Kemiskinan. Lokakarya: Ajaran Sosial Gereja. Kupang, Nusa Tenggara Timur, Indonesia: SINODE GMIT.
Bigoni, M., Gagliardo, E. D., & Funnel, W. (2013). Rethinking the Sacred and Secular Divide. Auditing & Accountability Journal, Vol.26., Iss.4. pp.567-594. https://doi.org/10.1108/09513571311327462 DOI: https://doi.org/10.1108/09513571311327462
Booth, P. (1993). A Research Framework and Agenda. Accounting, Auditing & Accountability, Vol.6. Iss.4. https://doi.org/10.1108/09513579310045684 DOI: https://doi.org/10.1108/09513579310045684
Carmona, S., & Ezzamel, M. (2006). Accounting and Religion: A Historical Perspective. Accounting History, Vol.11. No.2. https://doi.org/10.1177/1032373206063109 DOI: https://doi.org/10.1177/1032373206063109
Cordery, C. (2015). Accounting History and Religion: A Review of Studies and A Research Agenda. Accounting History, 1-34, https://doi.org/10.1177/1032373215610590 DOI: https://doi.org/10.1177/1032373215610590
GMIT Kota Baru Kupang/ECCT Kota Baru Kupang. (2016). Laporan Perbendaharaan Gereja. Kupang: GMIT Kota Baru.
H.J.Irvine. (1998). Pass the Plate Around Again: A study of Budgeting in a Local Church. Australia and New Zealand Third Sector Research (ANZTSR0 Conference. Melbourne: University of Wollongong, Research Online, Faculty of Commerce (Archive).
Hardy, L., & Ballis, H. (2005). Does One Size Fit All? the Sacred and Secular Divide Revisited with Insights from Niebuhr's Typology of Social Action. Accounting, Auditing & Accountability Journal, Vol.18. Iss.2. pp.238-254. https://doi.org/10.1108/09513570510588742 DOI: https://doi.org/10.1108/09513570510588742
Ikatan Akuntan Indonesia. (2015). Pernyataan Standar Akuntansi Keuangan 45, Revisi 2015. Jakarta: IAI.
Irvine, H. (2005). Balancing Money and Mission in a Local Church Budget. Accounting and Accountability Journal, Vol.18. No 2. pp.211-237. https://doi.org/10.1108/09513570510588733 DOI: https://doi.org/10.1108/09513570510588733
Irvine, H. (2011). From Go to Woe. Accounting, Auditing and Accountability Journal, Vol.24. Iss.7. pp.824-847. https://doi.org/10.1108/09513571111161611 DOI: https://doi.org/10.1108/09513571111161611
Jacobs, K. (2004). Accounting and Accountability in the Ion Community. Accounting, Auditing & Accountability, Vol.17. No.3. pp.361-381. https://doi.org/10.1108/09513570410545786 DOI: https://doi.org/10.1108/09513570410545786
Kreander, N., McPhail, K., & Molyneaux, D. (2004). God's Fund Managers: A Critical Study of Stock Market Investment Practices. Accounting, Auditing, and Accountability, Vol.17. No.3.pp.408-441. https://doi.org/10.1108/09513570410545803 DOI: https://doi.org/10.1108/09513570410545803
Laughlin, R. .. (1988). Accounting in Its Social Context: An Analysis of the Accounting Systems of the Church of England. Accounting, Auditing & Accountability Journal, Vol.1. Iss.2. pp. 19-42. https://doi.org/10.1108/EUM0000000004622 DOI: https://doi.org/10.1108/EUM0000000004622
Leiwakabessy, L. (2015). Analisis Penerapan Akuntansi Orgaisasi Nirlaba Entitas Gereja Berdasarkan PSAK 45 (Studi Kasus Gereja Masehi Injili di Minahasa Baitel Kolongan). Manado: Politeknik Negeri Manado.
Lightbody, M. (2000). Financial Management Behaviour in A Church Organization. Accounting, Auditing & Accountability Journal, Vol.13. No.2. pp.156-174. https://doi.org/10.1108/09513570010323245 DOI: https://doi.org/10.1108/09513570010323245
Llewellyn, E. B. (2012). Accounting and Accountability in Italian Social Provider. Accounting, Auditing & Accountability Journal, Vol.25. Iss.5. pp 806-834. https://doi.org/10.1108/09513571211234268 DOI: https://doi.org/10.1108/09513571211234268
Majelis SINODE Gereja Masehi Injili di Timor (GMIT). (2012). Peraturan Pokok Perbendaharaan dan Pedoman Pengelolaan Perbendaharaan GMIT. Aturan GMIT. Kupang: SINODE GMIT.
Majelis SINODE Gereja Masehi Injili di Timor (GMIT). (2015). Tata Gereja GMIT 2010 dan Perubaha Pertama 2015. Aturan GMIT. Kupang: SINODE GMIT.
Memesah, M. (2013). Penerapan PSAK 45 Pada GMIM Efrata Sentrum Sonder-Kaitannya dengan Kualitas Informasi Laporan Keuangan. EMBA-Universitas Sam Ratulangi Manado, Vol.1.No.4.
Mutch, A. (2016). Religion and Accounting Texts in Eighteenth-Century Scotland: Organizational Practices and a Culture of Accountability. Accounting, Auditing, & Accountability Journal, Vol.29.Iss.6. https://doi.org/10.1108/AAAJ-07-2014-1753 DOI: https://doi.org/10.1108/AAAJ-07-2014-1753
Niebuhr, H. (2001). Christ and Culture. London: Faber & Faber.
Parker, L. D. (2001). Reactive Planning in a Christian Bureaucracy. Management Accounting Research. https://doi.org/10.1006/mare.2001.0165 DOI: https://doi.org/10.1006/mare.2001.0165
Parker, L. D. (2002). Budgetary Incrementalism in A Christian Bureaucracy. Management Accounting Research, DOI: 10.006/mare.2001.0171.
Pontoh, C. (2013). Penerapan Laporan Keuangan Nirlaba Berdasarkan PSAK 45 Pada Gereja BZL. EMA-Universitas Sam Ratulangi Manado, Vol.1. No.3. ISSN 2303-1174.
Putri, O. A. (2013). Transparansi Laporan Keuangan Pada Organisasi Keagamaan (Studi Kasus Pada Gereja Isa Almasih Genuk Indah di Semarang). Salatiga: Universitas Kristen Satya Wacana Salatiga.
Quattrone, P. (2015). Governing Social Order, Unfolding rationality, and Jesuit Accounting Practices: A Procedural Approach to Institutional Logics. Administrative Science Quartely, Vol.60 93). pp.411-445. https://doi.org/10.1177/0001839215592174 DOI: https://doi.org/10.1177/0001839215592174
Sanchez, J. B., & Funnell, M. W. (2015). War of the Business of God. Auditing & Accountability Journal, Vol.28, Iss.3. PP.434-459. https://doi.org/10.1108/AAAJ-01-2014-1588 DOI: https://doi.org/10.1108/AAAJ-01-2014-1588
Tanui, P. J., Omare, D., & Bitange, D. J. (2016). Internal Control System for Financial Management in the Church: A Case of Protestant Churches in Eldoret Municipality, Kenya. European Journal of Accounting, Auditing, and Finance Research, Vol.4. No.6. pp 29-46.
Tumiwa, K., Triyuwono, I., Ludigdo, U., & Rasmini, N. K. (2015). Faithful Reflection: The Accounting and Accountability Church Tortugas. Scientific Research Journal (SCIRJ), Vol.3. Iss.6. June, ISSN 2201-2796.