Analysis of Intangible Assets Movements in the Financial Report In Deli Serdang Regency For 2021-2022

Abstrak

Purpose : This study aims to analyze the accounting treatment and disclosure of intangible assets in the financial statements of the Deli Serdang Regency Government for the fiscal years 2021–2022. Intangible assets, although relatively small in value compared to total assets, play a strategic role in supporting transparency, accountability, and digital transformation within local government financial management.

Design/Methodology/Approach :The study employs a qualitative descriptive approach by analyzing secondary data derived from the Regional Government Financial Reports (LKPD) and Notes to the Financial Statements (CaLK). The data were examined in reference to the Accrual-Based Government Accounting Standards (SAP) and KSAP Technical Bulletins, focusing on recognition, measurement, amortization, and disclosure practices.

Findings : The results show that the value of intangible assets increased by 21%, from IDR 5.39 billion in 2021 to IDR 6.52 billion in 2022, mainly due to the procurement and development of software and digital applications across various government agencies. The Education, Health, and Housing departments recorded the highest asset values, reflecting local government priorities in digital service enhancement. Although recognition and measurement generally complied with SAP standards, disclosures in the CaLK were still limited, particularly regarding amortization, impairment, and useful life policies.

Originality/Value : This research contributes to the growing body of literature on public sector intangible asset management by providing an empirical analysis of local government compliance with national accounting standards. The findings highlight the importance of improving disclosure quality and capacity-building among regional accountants to enhance the transparency and reliability of financial reporting in Indonesia’s local government sector.