2012 IFRS Convergence Program in Indonesia

(1)

2012 IFRS Convergence Program

in Indonesia

Rosita Uli Sinaga

Chairman of The Indonesian Financial Accounting

Standards Board (DSAK-IAI)

The Indonesian Institute of Accountants

(2)

What is IFRS?

(3)

IFRS

Advisory

Council

IFRIC

(4)

The Target of 2012 IFRS Convergence

in Indonesia

4 o

Revising PSAK to reach material compliance

with IFRS as of 1 January 2009, which will be

effective at year 2011/2012.

o

_{We use gradual approach rather than Big Bang}

(5)

Indonesia IFRS Convergence

Roadmap

Adoption Stage

(2008-2010)

• Adopting all IFRS

to PSAK

• Preparation for

necessary

infrastructure

• Evaluation and

managing the

adoption impact to

SAK

Final Preparation

Stage (2011)

• Partial application

of the standard

• Finishing the

standard

preparation or

necessary

infrastructure

Implementation

Stage (2012)

• The application of

the standard

• Evaluation of IFRS

adoption impact to

the business

environment

• Define strategy for

full adoption

(6)

How We do it in Indonesia

o

Gradual approach not big bang approach

o

Establish IFRS implementation team to support DSAK on

implementation challenges

o

Support from Ministry of SOE by establishing IFRS task

force team to assist SOE in implementing IFRS

o

Improve the cooperation with industry associations

o

Support from the accountant academics in disseminating

convergence updates through out Indonesia and research

on IFRS implementation issues.

(7)

New Standards and

Interpretations

Effective on

2010

• 3 new Accounting

Standards (PSAK)

• Withdrawal of 9

Accounting

Standards

• Withdrawal of 1

Interpretation

Effective on

2011

• 16 New

Accounting

Standards (PSAK)

• 7 New

Interpretations

(ISAK)

Effective on

2012

(estimated)

• 11 New

Accounting

Standards (PSAK)

• 5 Interpretations

(ISAK)

7

(8)

The Progress of IFRS Adoption in

Indonesia

0 5 10 15 20 25 30 35 40 01-Jan-07 01-Jan-08 01-Jan-09 01-Jan-10 01-Jan-11 2 9 ₁₀ 23 33 37 ₃₇ 37 ₃₇ 37

IFRS Adopted Total IFRS Estimated

8

12/14/2010

(9)

IFRSs which Are Still Under

Discussion for Adoption in 2012

o

IFRS 1: First Time Adoption

o

_{IFRS 4 : Insurance Contract}

o

IFRS 6 :

Exploration and Evaluation Mineral

Resources

o

_{IAS 41 : Agriculture}

The Board is observing the current development

of IASB for those standards.

(10)

NON COMPARABLE PSAK

No

PSAK

DSAK Position as of

1 Dec 2010

1 _{PSAK 21 Ekuitas (Equity)}

Will be Revoked

2 PSAK 27 Akuntansi Koperasi (Accounting for

Cooperatives)

Will be Revoked

3 PSAK 38 Restrukturisasi Ekuitas Sepengendali

(Common Control Restructuring)

Not Decided

4 PSAK 44 Aktivitas Pengembangan Real Estate (Real

Estate Activity)

Will be Revoked,

Replaced by IFRIC 15

(ISAK 21)

5 _{PSAK 51 Kuasi Reorganisasi (Quasi)}

Not decided

6 PSAK 45 Akuntansi Entitas Nirlaba (Non Profit

Accounting)

Revised

7 _{PSAK 47 Akuntansi Tanah (Accounting for Land}

Not decided

8 PSAK 39 Akuntansi Kerja Sama Operasi (Accounting for

(11)

The Accounting Standard Framework

in Indonesia

2010-2012

> 2012

SAK UMUM

• IFRS based PSAK

• Shari’ah Standards

• PSAK Non IFRS

(including SAK for

Non Profit)

SAK-ETAP (PSAK

for SME)

SAK UMUM

• IFRS based PSAK

• PSAK NON IFRS (Including

syari’ah)

SAK ETAP (PSAK for

SME)

SAK for Non profit

(12)

IFRS – Active projects 2010

IFRS Target issuance

Conceptual framework (8 phases) From Q2 2010 to undetermined yet Consolidation, including SPE (to replace IAS 27) Q4 2010

Derecognition (new IFRS) Q4 2010

Amendments to IFRS 5 Q2 2010

Emissions trading schemes (new IFRS) Q2 2011 Fair value measurement guidance Q3 2010

IFRS 9 (phase 2&3) Q4 2010

Financial statement presentation (to replace IAS 1 & 7) Q2 2011

Amendments to IAS 12 Q2 2011

Insurance contract (phase 2) Q2 2011

Amendments to IAS 31 (Joint ventures) Q2 2010

Amendments to IAS 37 (Provisions) Q4 2010

(13)

The gap – 1 January 2012

1 Jan 2009

2010

2011

2012

IFRS

(14)

The gap after 1 January 2012

(an illustration only)

1 Jan 2009

2010

2011

2012

2013

????????

IFRS

(15)

Accountant Perception on the IFRS

Convergence in Indonesia*

15

Strongly Negative

1%

Negative

21%

Positive

72%

Strongly Positive

6%

*Research by Ersa Tri Wahyuni and Penny Lay, 2010, to the 143 accountant

(16)

Survey to Bankers on the Implementation of

Financial Instruments Standards

Questions

Response Total

Response

Does the key management support the

implementation of IAS 32 and IAS 39?

96.43%

Yes

56 Does the implementation of the standards

result the change in the bank’s information

system?

Yes

92.6%

54 Does the implementation of the standards

provide more relevant information about

bank’s financial performance?

Yes

89.8%

49

16

Total Respondent is 56 bankers, survey was collected during the Central Bank’s

Seminar, 24

th

_{November 2010}

(17)

Challenges of IFRS Convergence

o

The convergence process of relevant laws and

regulations (BAPEPAM, Central Bank, Tax, etc)

o

Dissemination of IFRS Convergence information to

all stakeholders through out Indonesia

o

IFRS is moving target

o

Readiness of other infrastructure (other

specialists, lecturers, accounting syllabi and text

books, auditing standards)

o

The mind set shift from rule based to principle

based among all players (preparers, auditors and

regulators)

(18)

Plans for The Future

o

More involvement in the international forum

n

AOSSG (Asian Oceania Standard Setter Group)

o

Involve in 6 working groups:

Revenue, Leases, Consolidation, Insurance

Contract, Islamic Finance and Agriculture.

n

IAI is the Host of The 5

th

_{IFRS Regional Policy Forum}

o

23-24 May 2011 in Bali

n

Intensive communication with IASB.

o

Meetings with IASB representative (May and Oct

2010)

(19)

Plans for The Future

o

Financial Reporting Act is necessary to provide

legal support of the Accounting Standards

o

_{Strategy for IFRS Convergence Wave II}

(20)

Thank You

Disclaimer: The views expressed in this presentation are those of the presenter.

Official position of the DSAK-IAI on accounting matters are determined only

after extensive due process and deliberation.

The Indonesian Financial Accounting Standards Board (DSAK-IAI)

GRHA AKUNTAN

Jl. Sindanglaya No.1 Menteng, Jakarta Pusat

Telp. 021 31904232

Fax. 021 7245078

Email:

Website::

(21)

Appendix: List of the Accounting

Standards and Interpretation

with their effective date

(22)

No

PSAK/ISAK

Ref

Issued

Effective date

1. PSAK 13 Properti Investasi

IAS 40

2007

1 January 2008

2. PSAK 16 Aset Tetap

IAS 16

2007

1 January 2008

3. PSAK 30 Sewa

IAS 17

2007

1 January 2008

4. PSAK 14 Persediaan

IAS 2

2008

1 January 2009

5. PSAK 26 Biaya Pinjaman

IAS 23

2008

1 January 2010

6. PSAK 50 Instrumen Keuangan:

Penyajian dan Pengungkapan

IAS 32

2006

1 January 2010

7. PSAK 55 Instrumen Keuangan:

Pengakuan dan Pengukuran

IAS 39

2006

1 January 2010

8. ISAK 8 Penentuan Apakah Suatu

Perjanjian Mengandung Suatu

Sewa dan Pembahasan Lebih

Lanjut Ketentuan Transisi

IFRIC 4

2007

September 2008

(23)

No PPSAK Issued Effective

1. PPSAK No.1 Pencabutan

PSAK 32: Akuntansi Kehutanan,

PSAK 35: Akuntansi Pendapatan Jasa Telekomunikasi

PSAK 37: Akuntansi Penyelenggaraan Jalan Tol

2009 1 January 2010

2. PPSAK No. 2 Pencabutan

PSAK 41: Akuntansi Waran

PSAK 43: Akuntansi Anjak Piutang

2009 1 January 2010

PSAK 54: Akuntansi Restrukturisasi

Utang-Piutang Bermasalah 2009 1 January 2010

PSAK 31 (revisi 2000) Akuntansi Perbankan, PSAK 42: Akuntansi Perusahaan Efek, dan PSAK 49: Akuntansi Reksa Dana

2009 1 January 2010

ISAK 06: Interpretasi Atas Paragraf 12 dan 16 PSAK No. 55 (1999) Tentang Instrumen Derivatif Melekat Pada Kontrak Dalam Mata Uang Asing

(24)

No PSAK Reference

1. PSAK 1

Penyajian Laporan Keuangan

IAS 1

Presentation of Financial Statement 2. PSAK 2 Laporan Arus Kas IAS 7 Statement of Cash Flow

3. PSAK 3

Laporan Keuangan Interim IAS 34Interim Financial Reporting 4. PSAK 4

Laporan Keuangan Konsolidasian dan Laporan Keuangan Tersendiri

IAS 27

Consolidated and Separated Financial Statement

5. PSAK 5 Segmen Operasi IFRS 8 Operating Segment 6. PSAK 12

Bagian Partisipasi dalam Ventura Bersama

IAS 31

Interests in Joint Ventures 7. PSAK 7

Pengungkapan Pihak-Pihak yang Berelasi

IAS 24

Related Party Disclosures 8. PSAK 15

Investasi Pada Entitas Asosiasi

IAS 28

Investments in Associates

(25)

No

PSAK

Reference

9. PSAK 19 Aset Takberwujud

IAS 38 Intangible Assets

10. PSAK 22 Kombinasi Bisnis

IFRS 3 Business Combination

11. PSAK 23 Pendapatan

IAS 18 Revenue

12. PSAK 25

Kebijakan Akuntansi, Perubahan Estimasi

Akuntansi & Kesalahan

IAS 8

Accounting Policies, Changes in

Accounting Estimates and Errors

13. PSAK 48 Penurunan Nilai Aset

IAS 36 Impairment of Assets

14. PSAK 57

Provisi, Liabilitas Kontijensi & Aset

Kontijensi

IAS 37

Provisions, Contingent Liabilities

15. PSAK 58

Aset Tdk Lancar Yg Dimiliki Untuk Dijual

& Operasi Yg Dihentikan

IFRS 5

Non-current Assets Held for Sale

and Discontinued

16 PSAK 8

Peristiwa Setelah Tanggal Neraca

IAS 10

Event after balance sheet date

(26)

No

ISAK

Reference

1. ISAK 7

Konsolidasi Entitas Bertujuan Khusus SIC 12Consolidation – Special Purposes Entities 2. ISAK 9

Perubahan atas Liabilitas Purna Operasi, Liabilitas Restorasi & Liabilitas Serupa

IFRIC 1

Changes in existing decommissioning, restoration and similar liabilities

3. ISAK 10

Program Loyalitas Pelanggan IFRIC 13Customer Loyalty Programs 4. ISAK 11

Distribusi Aset Non Kas Kepada Pemilik IFRIC 17Distributions of Non-cash Assets to Owners 5. ISAK 12

Pengendalian Bersama Entitas: Kontribusi Nonmoneter oleh Venturer

SIC 13

Jointly Controlled Entities – Non Monetary

6. ISAK 14

Aset Takberwujud; Biaya Situs Web SIC 32Intangible Assets – Web Site Costs 7. ISAK 17

Laporan Keuangan Interim dan Penurunan Nilai

IFRIC 10 Interim Financial Reporting and Impairment

(27)

No

PSAK

Reference

1 PSAK 10: Pengaruh Perubahan

Kurs Valuta Asing

IAS 21: The Effect of Changes in

Foreign Exchange Rates

2. PSAK 18

Akuntansi dan Pelaporan

Program Manfaat Purnakarya

IAS 26

Accounting an reporting by retirement

benefit plans

3. PSAK 24

Imbalan Kerja

IAS 19

Employee Benefits

4. ED PSAK 34

Akuntansi Kontrak Konstruksi

IAS 11

Construction Contract

5. ED PSAK 46

Akuntansi Pajak Penghasilan

IAS 12

Income Taxes

6 PSAK 53

Pembayaran Berbasis Saham

IFRS 2

Share-based payment

(28)

No

PSAK

Reference

7 PSAK 50 : Instrumen

Keuangan: Penyajian

IAS 32: Financial Instruments:

Presentation

8. KED PSAK 56 (ED akan keluar

Des 2010)

Laba per saham

IAS 33

Earnings per share

9. PSAK 60: Instrumen

Keuangan:Pengungkapan

IFRS 7

Financial Instrument : Disclosure

10. PSAK 61: Akuntansi Hibah

Pemerintah Dan Pengungkapan

Bantuan Pemerintah

IAS 20

Accounting for government grants and

disclosure of government assistance

11. ED PSAK 63: Pelaporan

Keuangan dalam Ekonomi

Hiperinflasi

IAS 29

Financial Reporting in hyperinflationary

economies

(29)

No ISAK Reference

1. ISAK 13

Lindung Nilai Investasi Neto dalam Kegiatan Usaha Luar Negeri

IFRIC 16 Hedges of Net Investment in a Foreign Operation

2. ISAK 16

Perjanjian Konsesi Jasa

IFRIC 12 Service Concession Arrangements.

3. ISAK 15

PSAK 24 - Batas Aset Imbalan Pasti, Persyaratan Pendanaan Minimum Dan Interaksinya

IFRIC 14: IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding

Requirements and Their Interaction 4 ISAK 18: Bantuan Pemerintah-Tidak Ada

Relasi Specifik dengan Aktivitas Operasi SIC-10 Government Assistance—No SpecificRelation to Operating Activities

5

ED ISAK 19:

Penerapan Pendekatan Penyajian Kembali dalam

PSAK 63: Pelaporan Keuangan dalam Ekonomi

Hiperinflasi

IFRIC 7: Applying the Restatement Approach under

IAS 29: Financial Reporting in Hyperinflationary

economies

6 ED ISAK 20: Pajak Penghasilan-Perubahan dalam Status Pajak Entitas atau Para

Pemegang Sahamnya

SIC-25 Income Taxes—Changes in the Tax Status of an Entity or its Shareholders

7 ED ISAK 21: Perjanjian Konstruksi Real Estate IFRIC 15: Real Estate Construction Agreement