The cause of stock price falling based on financial accounting perspective : study case of pt. Garda Tujuh Buana, TBK
Gunawan, Hananiel M.
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PT. Garda Tujuh Buana, Tbk. is one of the coal mining companies listed on Indonesia Stock Exchange which booked very high performance improvement when the commodity price was declining. The high performance improvement then followed by drastically performance dropped on the next year. This condition was questioned by investors and being controversy among the investors. It is because the company’s stock price increase so high following the performance improvement and then dropped immediately on the next year due to performance dropped. There were so many investors bear losses on this case. This research analyze the financial report presentation of PT. Garda Tujuh Buana, Tbk. whether it had used correct accounting practice according to Indonesia prevailing financial accounting standards or not. Analysis method which is applied on this research is descriptive method to compare theory and reality to reveal the deviation, if any. Analysis result to the financial report presentation of PT. Garda Tujuh Buana, Tbk. shows that overall the company had composed its financial report consistently complied with Indonesia Statement of Financial Accounting Standards, but there are several notices on its financial reports. Company’s revenue recognition for sales of marketing right can be considered to violate matching principle concept, because the company did not disclose the expenses which are directly related on revenue earned on the period. The company is recommended to recognize its revenue proportionally related to respective transaction period to reduce volatility in company’s revenue