ACQUAINT THE MANAGEMENT OF INVENTORIES IN THE APPLICATION OF ACCRUAL-BASED GOVERNMENT ACCOUNTING STANDARDS

Abstract

Financial Reform on the Government characterized by PP 71 of 2010, and supported Permendagri 64 of 2013. The embodiment of the finance reform demands the application of accrual-based accounting system for local governments throughout Indonesia since 2015. The application of accrualbased accounting impact on the accounting records of inventories. Inventories

is one of the elements of the assets on the balance sheet in the financial report

of the Local Government. The accounting conduct of inventories will determine

the

reasonableness of the presentation of the value of the inventories on the balance sheet and the related inventories expense on the operational reports. Based on existing literature, it was concluded that the management of the inventories affected by apparatur resources competency within the management of inventories; internal control system is adequate and can be accountable; and information systems (application program) in the management of inventories. To be able to manage the inventories for the better, be required to strategy in curbing and administering inventories, inventories stock opname, and inventories reporting