CORPORATE SOCIAL RESPONSIBILITY DALAM MEMINIMALKAN PRAKTIK MANAJEMEN LABA

Abstract

Information earnings, a key element in the 􀏔inancial statement, as stated in the Statement of
Financial Accounting Concepts (SFAC) No. 2 is very important for those who use it because its predictive
value. Earnings management can be applied in the preparation of 􀏔inancial statements through creative
accounting practices, the choice of accounting methods, the classi􀏔ication of accounting systems and
the timing of the transaction. Earnings management practices can also done through the election
method of inventory accounting, depreciation of 􀏔ixed assets, capitalization of pensions, in􀏔lation, and
amortization. Corporate Social Responsibility (CSR) activities disclosed by the company will give good
impact for the company itself in the long term. The higher the company implemented corporate social
responsibility, the lower the activity of management to manage earnings to its interests. Due to the
􀏔inancial statements prepared by the management will be read and analyzed by stakeholders as a basis
for decision making, management is required to prepare honest 􀏔inancial statements. Disclosure of
corporate social responsibility that is increasingly widespread will improve the image of the company
and increase of the pro􀏔its to be earned by the company ultimately.