Standard Accounting

In order to follow the direction from Indonesian Financial Accounting Standards Board (DSAK-IAI), company in Indonesia needs to adopt the latest PSAK guidance


PSAK 71 is the adaptation of IFRS 9. PSAK 71 will replace previous PSAK 55 about Financial Instruments: Recognition and Measurement. The Standard includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting. The impairment rules of PSAK 71 introduce a new, forward looking, expected credit loss (‘ECL’) impairment model which will generally result in earlier recognition of losses.


PSAK 73 is the adaptation of IFRS 16. PSAK 71 will replace previous PSAK 30 about Lease Accounting. PSAK 73 defines a lease as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. PSAK 73 adds significant new, enhanced disclosure requirements for both lessors and lessees.


PSAK 74 is the adaptation of IFRS 17. PSAK 74 will replace previous PSAK 62 about Insurance Contract. The purpose of introducing this new standard is to align insurance company reporting frameworks across the globe and improve their consistency, comparability and transparency. A fundamental shift might be required in the way in which data is collected, stored and analysed, changing the emphasis from a prospective to a retrospective basis of analysis and introducing a more granular level of measurement and additional disclosures.