Abstract

Government Accounting Standards (SAP) was first published by the Accounting Standards Committee (PSAK) as the Government Regulation No. 24 of 2005. Fixed Asset Accounting for Government set out in Government Regulation (PP) number 24 of 2005 the Government Accounting Standards No. statement 08 (SAP No. 08) concerning Construction Accounting in Work. What is meant by construction in progress is an asset that is under construction. Construction in progress includes land, equipment and machinery, buildings and structures, roads, irrigation and networks, and other fixed assets whose acquisition and/or construction process requires a certain period of time and has not been completed. The purpose of the Statement of Construction Accounting in Progress Standards is to regulate the accounting treatment for construction in progress. Problems that often occur in construction in progress are usually caused by contracts for the construction of tangible fixed assets. This contract is called a contract executed by a contractor, which is an entity that enters into a contract to build assets or provide construction services for the benefit of another entity in accordance with the specifications set out in the construction contract.