Implementation of Government Acounting Standards Statement No.8 About Construction Accounting in the Work Process that Occurred in the Deli Serdang

Abstrak

Purpose – This study aims to analyze the implementation of Government Accounting Standard (SAP) No. 8 concerning Construction in Progress (CIP) in the Deli Serdang Regency Government during the 2024 fiscal year, with a particular focus on the construction of individual and communal septic tank projects. The research seeks to evaluate the extent of compliance with SAP No. 8 in recording, measuring, and reporting construction activities, as well as to identify the challenges that arise during its application.

Design/Methodology/Approach – The study adopts a qualitative descriptive approach through a combination of document analysis and field interviews. Data were obtained from the Local Government Financial Statements (LKPD), Budget Implementation Documents (DPA), project contracts, and physical and financial progress reports, complemented by interviews with financial management officials and technical departments. Data analysis followed the Miles and Huberman (1994) model, including data reduction, data display, and conclusion drawing, supported by source and method triangulation to ensure validity.

Findings – The results reveal that the Deli Serdang Regency Government has implemented SAP No. 8 appropriately by recording construction costs as Construction in Progress (CIP) rather than fixed assets until project completion. This approach ensures compliance with Government Regulation No. 71 of 2010 on Government Accounting Standards and enhances transparency and accountability in financial reporting. However, challenges remain, such as delays in progress reporting and limited technical understanding of accrual-based accounting among some officials, which affect the timeliness and accuracy of reporting.

Originality/Value – This study provides an in-depth assessment of SAP No. 8 implementation in regional financial management, emphasizing its role not only as an accounting guideline but also as a mechanism for ensuring fiscal transparency and accountability. The findings contribute to the development of best practices in government accounting and serve as a valuable reference for policymakers and practitioners seeking to improve the quality and reliability of public sector financial reports.