DISCLOSURE AND

TRANSPARENCY
 OECD Principles
• Disclosure and Transparency
– The corporate governance framework
should ensure that timely and accurate
disclosure is made on all material matters
regarding the corporation, including the
financial situation, performance,
ownership, and governance of the
company.
 KNKG
• Asas GCG yaitu transparansi,
akuntabilitas, responsibilitas, independensi
serta kewajaran dan kesetaraan
 Information Asymmetry
• Information asymmetry: some parties to
business transactions may have an
information advantage over others
• Two major types of information asymmetry
– Adverse selection
– Moral hazard
Information Asymmetry (Cont’d)
• Adverse selection
– One or more parties (managers and other
insiders) to a business transaction, or
potential transaction, have an information
advantage over other parties (investors)
– This may affect the ability of investors to make
good investment decisions
– Financial accounting and reporting as a
mechanism to control the adverse selection
problem by converting inside information into
outside information
Information Asymmetry (Cont’d)
• Moral Hazard
– One or more parties to a business
transaction, or potential transaction, can
observe their actions in fulfillment of the
transaction but other parties cannot.
– Occurs because of the separation of
ownership and control
– Accounting net income as a measure of
managerial performance
 Important Role
• Independent audit
• Accounting and disclosure standards
• Corporate governance – board and audit
committee
 Regulasi BAPEPAM-LK
• Kewajiban bagi Emiten dan Perusahaan Publik
untuk menyampaikan Laporan Tahunan:
– Ikhtisar data keuangan penting
– Laporan dewan komisaris
– Laporan direksi
– Profil perusahaan
– Analisis dan pembahasan manajemen
– Tata kelola perusahaan
– Tanggung jawab direksi atas laporan keuangan
– Laporan keuangan yang telah diaudit
Regulasi BAPEPAM-LK (Cont’d)
• Peraturan Nomor VIII.G.7 Tentang
Pedoman Penyajian Laporan Keuangan
– Peraturan ini menetapkan bentuk, isi, dan
persyaratan dalam penyajian laporan
keuangan yang harus disampaikan oleh
Emiten atau Perusahaan Publik
Regulasi BAPEPAM-LK (Cont’d)
• Pedoman Penyajian dan Pengungkapan
Laporan Keuangan Emiten atau Perusahaan
Publik (P3LKEPP):
– Untuk memberikan suatu panduan penyajian dan
pengungkapan yang terstandarisasi dengan
mendasarkan pada prinsip-prinsip pengungkapan
penuh (full disclosure), sehingga dapat memberikan
kualitas penyajian dan pengungkapan yang memadai
bagi pengguna informasi yang disajikan dalam
pelaporan keuangan Emiten atau Perusahaan Publik.
– Aturan yang lebih detil sebagai acuan untuk
pelaksanaan guna melaksanakan Peraturan Nomor
VIII.G.7 tentang Pedoman Penyajian Laporan
Keuangan
Regulasi BAPEPAM-LK (Cont’d)
P3LKEPP (Cont’d)
• Industri Manufaktur • Industri Konstruksi
• Industri Investasi • Industri
Perdagangan
• Industri Rumah Sakit • Industri Transportasi
• Industri Jalan Tol • Industri Real Estate
• Industri Perhotelan • Industri Peternakan
• Industri Restoran • Industri Perkebunan
• Industri
Telekomunikasi
Regulasi BAPEPAM-LK (Cont’d)
P3LKEPP (Cont’d)
• Industri Pertambangan Umum
• Industri Minyak dan Gas Bumi
• Industri Perbankan
Regulasi BAPEPAM-LK (Cont’d)
• Peraturan Nomor X.K.1 : Keterbukaan
Informasi yang Harus Segera
Diumumkan kepada Publik
 Empirical Evidence
• Botosan (1997)
– For a sample of firms with relatively low
analyst following, greater disclosure is
associated with a lower cost of equity capital
• Sengupta (1998)
– Documents a statistically significant negative
association between a measure of a firm’s
overall quality disclosure and two alternative
measures of a firm’s incremental borrowing
cost
Internal Control
 Definition
• CORPORATE GOVERNANCE: “the system by which
business corporations are directed and controlled. ”
• INTERNAL CONTROL: “a process, effected by an
entity's board of directors, management and other
personnel, designed to provide reasonable assurance
regarding the achievement of objectives in the following
categories:
– Effectiveness and efficiency of operations
– Reliability of financial reporting
– Compliance with applicable laws and regulations
 Five Components
• Control environment
• Risk assessment
• Control activities
• Information and communication
• Monitoring
 What Internal Control Can
Do?
• Internal control can help an entity achieve its
performance and profitability targets, and prevent
loss of resources.
• It can help ensure reliable financial reporting.
• It can help ensure that the enterprise complies
with laws and regulations, avoiding damage to its
reputation and other consequences.
• In sum, it can help an entity get to where it wants
to go, and avoid pitfalls and surprises along the
way.
 What Internal Control Can
Not Do:
• Internal control cannot change an inherently poor
manager into a good one.
• Shifts in government policy or programs, competitors'
actions or economic conditions can be beyond
management's control.
• Internal control cannot ensure success, or even survival.
• An internal control system, no matter how well conceived
and operated, can provide only reasonable--not
absolute--assurance to management and the board
regarding achievement of an entity's objectives.
 What Internal Control Can
Not Do:
• Controls can be circumvented by the
collusion of two or more people, and
management has the ability to override the
system.
• Another limiting factor is that the design of
an internal control system must reflect the
fact that there are resource constraints,
and the benefits of controls must be
considered relative to their costs.
 Roles and Responsibilities
Everyone in an organization has responsibility for internal
control
• Management
• Board
• Internal Auditors
• Other Personnel
– External auditors contribute directly through the
financial statement audit and indirectly by providing
information useful to management and the board in
carrying out their responsibilities