PENULIS

Dr. Rexon Nainggolan, S.E., M.M., M.Ak., CA., CPA

TANGGAL

30 November 2023

ABSTRAK

The study examines the predictive ability of interim announcement on projecting year-end financial statements. The investigation tests the accuracy of projected income statements by using proportional method of Q1, Q2, and Q3 interim announcements against actual year-end.   The study investigates 280 announcements from 70 of 415 firms listed in Indonesia Stock Exchange.  The  indicators  being  measured are  the  income  statements  components  which include revenue, expense, other income/loss, net income,  and earning per share (EPS) of the interim announcements. The study uses mean deviation as tools on measurements.    The  finding  indicates  that  income  statements  reported  in  the  interim  announcements,  if projected proporsionally, deviate signifantly against the actual year-end (Q4), in most type of  industries,  which  reflected  by  the  significant  mean  deviation.  The  conclusion  is consistent in all main components of income statements tested, including sales, expenses, other income/loss, net income, and earning per share (EPS). However, the study indicates that eventhough the deviation is still signicant, it is reduced in Q2 and Q3 as the periods are longer.  

Keywords: interim announcement, mean deviation, Indonesian Stock Exchange 

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