INCOME SMOOTHING PRACTICES IN ANIMAL FEED SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2020-2022 PERIOD

This study aims to analyze Income Smoothing practices in animal feed sub-sector companies with a focus on the financial implications of using the eckel index during the period 2020 – 2022. The sample used is animal feed sub-sector companies in the basic industrial and chemical sectors listed on the Indonesia Stock Exchange, there are 5 companies. Based on calculations using the eckel index derived from the financial statements of each company, This research shows that there are 4 companies that do profit smoothing and 1 company that does not do income smoothing.

One effort that is often used is the practice of profit smoothing or income smoothing.This phenomenon has become a big concern in accounting and finance because it can affect the transparency, fairness, and integrity of a company's financial statements (Dibta, 2020).
Livestock has an important role in development in at least 4 strategic things, namely animal husbandry to provide food, especially to meet people's needs for animal protein, animal husbandry for sources of income and employment opportunities, animal husbandry for work business, Livestock for sustainable agriculture and environmental improvement and animal husbandry for alleviating people from poverty This is the role of the food subsector in caring for its environmental resources (Jannah, 2018).
Animal feed sub-sector companies are very important in maintaining the availability of animal food and supporting national economic growth (Rusdiana & Maesya, 2017).Although, the contribution of the animal feed sub-sector to Indonesia's Gross Domestic Product (GDP) is only around 1.1%, this sub-sector still has an influence on food security and economic stability in Indonesia.But what is interesting is how the practice of Income Smoothing in animal feed sub-sector companies can affect these aspects.Some companies in this subsector may tend to do Income Smoothing in an effort to present more financially favorable financial statements (Arlita, Bone, & Kesuma, 2019).However, this practice may hide the real problems within the company.This phenomenon also includes the extent to which companies in the animal feed sub-sector feel external pressures, such as fluctuations in raw material prices and regulatory changes in the industry.This kind of uncertainty might encourage companies to use Income Smoothing practices as a way to maintain the stability and consistency of their profits, regardless of changing conditions External.
Previous research by Fatimah, Danial, &; Z (2019) on food and beverage industry companies listed on the Indonesia Stock Exchange for the period 2014-2016.The study used the Eckel index.From the results of the study, there were 6 companies that carried out Income Smoothing actions and 4 companies that did not carry out Income Smoothing actions.While Yang, Leing Tan, & Ding (2012) conducted a study on Income Smoothing practices with the Eckel index on companies listed in China.Of the 1,358 registered Chinese companies during the period between 1999 and 2006, it was found that more than half of them practiced Income Smoothing.Similar research conducted by Septia, Easter, & Nugroho (2013) showed that from 73 samples from non-manufacturing companies, there were 22 companies that carried out Income Smoothing actions, and 51 companies that did not take Income Smoothing actions.Mila & Supatmi (2012) examined that out of 212 companies there were 72 nonmanufacturing companies that carried out Income Smoothing actions and 140 of them were carried out by manufacturing companies.
However, previous studies made observations on food and beverage industry companies and companies registered in China as the object of its research.Meanwhile, this study uses animal feed sub-sector companies listed on the IDX for the 2020-2022 period.
This study aims to analyze Income Smoothing practices in animal feed sub-sector companies with a focus on financial implications using the ECKEL index.

RESEARCH METHODS
The method used to measure the practice of Income Smoothing is "Eckel Index" or "Eckel's Earnings Smoothing Index" which was first introduced by Philip Eckel.The Eckel Index is one of the tools used to identify whether a company has leveled its profits (Saputri, Auliyah, & Yuliana, 2017).
The population in this study is animal feed industry companies listed on the Indonesia Stock Exchange for the period 2020 -2022 with a sample of 15 financial statements.These companies include PT Central Proteina Prima, Tbk., PT Sreeya Sewu Indonesia, Tbk., PT Malindo Feedmill, Tbk., PT Charoen Pokphand Indonesia, Tbk. and PT Japfa Comfeed Indonesia, Tbk.

Variables and Variable Measurement
The variable in this study is Income Smoothing.The method used to measure the practice of profit smoothing is "Eckel Index" or "Eckel's Earnings Smoothing Index" which was first introduced by Philip Eckel.The Eckel Index is one of the tools used to identify whether a company has leveled its profits.A simple formula that can be used to calculate the Eckel Index is as follows:

RESULTS AND DISCUSSION
Based on the calculation results using the eckel index, it can be known whether animal feed sub-sector companies carry out Income Smoothing practices.The profit smoothing variable is measured using a dummy variable.To distinguish companies identified as doing profit smoothing are given a value of 1 (one) and companies that are not identified as doing profit smoothing are given a value of 0 (zero) (Fatimah & Danial, 2019).Based on calculations The following results from the study are shown in table 1: profit in one period ∆S = Change in sales in one period CV = Coefficient of variation of the variable i.e. standard deviation with expected value CV∆I = Coefficient of variation for profit change CV∆S = Coefficient of variation for sales profit (I) or sales (S) ∆X = Average change in earnings (I) or Sales (S) N = Number of years observed If CV∆I ≥ CV∆S or Income Smoothing index 1, then the company does not take Income Smoothing action.Conversely, if CV∆I < CV∆S or Income Smoothing index < 1, the company takes Income Smoothing action.