Road to IFRS on 2012: PSAK 1 (1998) vs ED PSAK 1 (2009)

The main goals to fully implement the International Financial Reporting Standard (IFRS) on 2012 in Indonesia are getting nearer due to the hard works that have been done by Dewan Standar Akuntansi Keuangan (DSAK). On April 21, 2009 the adaptation of PSAK 1 (1998) to the new IAS 1 (2009) about Presentation of Financial Statement have finished and comes with Exposure Draft PSAK 1 (revision 2009) as the result.

The standard of Presentation of Financial Statement in Indonesia will be based on the new ED PSAK 1 (2009) starting on January 1, 2011. From that time, the old standard will not be valid anymore.

Many things are significantly different at this new standard and others are just the ordinary adaptation to the local situation and language. In this chapter we will discuss more about the short differences between PSAK 1 (1998) and ED PSAK 1 (2009) about Presentation of Financial Statement.

A. PSAK 1 (1998) vs PSAK 1 (2009)

At least there are 10 differences that are need to be noticed by us. But the other differences, which is are not be explained in this paper, are important too and should not be neglected by us, especially for accountant and auditor of financial statement.

1. Compliance to SAK
2. Deviation from SAK
3. Timeliness of financial statement report
4. Components of financial statements
5. Component of income statement
6. Comparative financial statement
7. Non-controlling interest
8. Extraordinary items
9. Gain/loss from revaluation of fixed asset
10. Actuarial gain/loss

Compliance to SAK

PSAK 1 (1998) do not stated explicitly about the requirement of an entity to make a compliance statement on notes to financial statement that its financial statement has been complied with SAK. The new standard, ED PSAK 1 (2009), has been set up specifically to this issue.

ED PSAK 1 (2009) paragraph 14 said:

Entities whose financial statements comply with SAK have to made a statement explicitly and without exception concerning compliance with SAK in the notes to financial statements. Entities should not be mentioned that the financial statements comply with SAK unless the financial statements comply with all required under SAK.

Compliance statement has to be made if and only if the financial statement of the entity has been complied with all requirements under SAK. If they did without the compliances, it will take effect on the opinion of the financial statement.

Deviation from SAK

PSAK 1 (1998) does not stated explicitly about deviation from SAK. The new standard, ED PSAK 1  (2009), has been set up specifically to this issue.

ED PSAK 1 (2009) paragraph 17 said:

In very rare circumstances when management concludes that compliance with a provision in a SAK would give the wrong understanding that would conflict with the objectives of financial statements as stipulated in Kerangka Dasar Penyusunan dan Penyajian Laporan Keuangan, so entities deviate from the provision in a way that specified in paragraph 18 if the relevant regulations do not require or prohibit such deviations.

Entities can deviate from the provision in SAK if and only if the management concludes that it would give the wrong understanding that would conflict with the objectives of financial statements. In other way, deviations from SAK permitted if compliance to SAK is contrary to financial statement purposes in Kerangka Dasar Penyusunan dan Penyajian Laporan Keuangan (Framework for the Preparation and Presentation of Financial Statements).

More details about what things that have to be disclosed etc are explained on ED PSAK 1 (2009) paragraph 18-22.

Timeliness of Financial Statement Report

ED PSAK 1 (2009) does not specifically regulate about of when entities issuing financial statements while the old PSAK 1 (1998) paragraph 38 said that entities should be issued a financial statement four months after the balance sheet date.

Components of Financial Statement

ED PSAK 1 (2009) paragraph 8 said:

Complete financial statement comprises the following components:

1. Balance Sheet (Laporan Posisi Keuangan) at the end of the period;
2. Comprehensive Income Statement during the period;
3. Statement of Changes in Equity during the period;
4. Statement of Cash Flow during the period;
5. Notes to Financial Statements, contains a summary of significant accounting policies and other description information; and
6. Comparative beginning period of Balance Sheet (Laporan Posisi Keuangan) due to the application of retrospective, restatement of balance sheet, or reclassification of posts of financial statements.

Generally the components of financial statement between this two standards are the same. But at least there are three important things that should be noticed by us in this new ED PSAK 1 (2009).

1. The terms “Neraca” (balance sheet in Bahasa Indonesia) have changed into “Laporan Posisi Keuangan”.
2. The ordinary income statement has changed and becomes comprehensive income statement. This will take effect to the presentation of net income. It is quite different from the ordinary income statement.
3. The component of financial statement are the same with PSAK 1 (1998) plus one component which is: the comparative beginning period of balance sheet due to the application of retrospective, restatement of balance sheet, or reclassification of posts of financial statements.

Component of Comprehensive Income Statement

ED PSAK 1 (2009) paragraph 80 said:

Comprehensive Income Statement, at least include the presentation of the following items during a period:
a) Revenues;
b) Financial expenses;
c) Part of income from associates and joint venture which recorded using the equity method;
d) Tax expenses;
e) A single sum that includes a total of:

• After-tax income from discontinued operations; and

• Gains or losses after tax accrued by measurement of fair value less costs to sell or from disposal of an asset or a group that is disposed in order to discontinued operations;

f) Income;
g) Each component of Other Comprehensive Income that are classified in accordance with the characteristics (other than amount in item h));
h) Part of Other Comprehensive Income from associates and joint venture which recorded using the equity method; and
i) Total Comprehensive Income.

The old PSAK 1 (1998) paragraph 56 stated the same component of Income Statement like above except for point b), e), and h) plus extraordinary items which prohibited based on ED PSAK 1 (2009), minority rights (non-controlling rights) which will be presented in income from current period based on ED PSAK 1 (2009).

Comparative Financial Statement

ED PSAK 1 (2009) regulates the minimum number of financial statement that have to be reported by entities which present the comparative information. The minimum number are two  balance sheet (and other report) and three balance sheet if entities applies the retrospective policies. The old PSAK 1 (1998) are not regulates about this specifically.

ED PSAK 1 (2009) paragraph 37 said:

Entities which disclose comparative information present at least two balance sheet, two reports for each type of other reports, and notes to financial statements. If an entity applies the accounting policy retrospectively or makes a retrospective restatement of items in the financial statements or has reclassified items in the financial statements, the entity presents at least three balance sheet, two reports for each type of other reports, and notes to financial statement.

Non-Controlling Interest

At least there are three important things that should be noticed by us in this new ED PSAK 1 (2009) that are different from PSAK 1 (1998).

1. The terms “Hak Minoritas” (Minority Rights) has changed into “Hak Non-Pengendali” (Non-Controlling Rights).
2. In the Balance Sheet, non-controlling rights are presented in equity section while the old PSAK 1 (1998) said that non-controlling rights are presented separately in liability and equity section. See ED PSAK 1 (2009) paragraph 52 and PSAK 1 (1998) paragraph 53 for more details.
3. In Income Statement and Comprehensive Income Statement, net income allocated to the equity owners of the parent entity and non-controlling rights while the old PSAK 1 (1998) said that minority rights (non-controlling rights) in profit or loss is presented as a deduction from net profit. See ED PSAK 1 (2009) paragraph 81 and PSAK 1 (1998) paragraph 56.

Extraordinary Items

While the old PSAK 1 (revision 1998) paragraph 56 still allow to present revenue or expense as an extraordinary items in income statement, under ED PSAK 1 (revision 2009) the extraordinary items are prohibited.

ED PSAK 1 (2009) paragraph 85 said:

Entities are not allowed to present the posts of revenues and expenses as extraordinary items in the comprehensive income statement, a separate income statement (if presented), or in the notes to financial statements.

Gain/Loss from Revaluation of Fixed Asset

In ED PSAK 1 (2009), gain/loss from revaluation of fixed asset are presented in Other Comprehensive Income section in Comprehensive Income Statement. See ED PSAK 1 (2009) paragraph 94 for more details.

Actuarial Gain/Loss

In ED PSAK 1 (2009), actuarial gain/loss are presented in Other Comprehensive Income section in Comprehensive Income Statement. See ED PSAK 1 (2009) paragraph 94 for more details.

B. Other Possibilities of Differences

There could be several or even many differences that escape from the eyes of the author. For that, the author hopes that the readers are not only focus on the difference in this brief work but also attracted to find independently for any differences to enrich the information for public, especially for accountant and financial auditor.

C. Conclusion

ED PSAK 1 (2009) about Presentation of Financial Statement and its adaptation with IAS 1 (2009) have created several significant differences from the previous standard, PSAK 1 (1998). The different such as Comprehensive Income Statement, prohibition of Extraordinary Items, new rules about compliance to SAK, etc should and have to obey by all of us, especially for accountant and financial auditor.

The author does not suggest to use this brief comparison as your single sources to update your knowledge about the new PSAK 1. This is just the brief comparison (with so many possibilities of mistakes) so use other sources too as references. This article is being made for people who want to know the comparison in instant way.

References:

Ikatan Akuntan Indonesia (IAI). Standar Akuntansi Keuangan. Jakarta : Penerbit Salemba Empat, 2007.

ED PSAK 1 (2009) about Presentation of Financial Statement: www.iaiglobal.or.id

Notes:

This article is a part of author’s academic paper published on May 21, 2010 with revision and without changing the meaning.

Mungkin bbrp literatur berikut bs membantu.
1) IFRS and Indonesian GAAP: A Comparison (as of January 2007 by Deloitte) >> http://www.iasplus.com/asia/0704ifrsindonesiangaap.pdf

2) IFRS compared to Indonesian GAAP: An overview (as of June 2007 by KPMG) >> http://www.kpmg.co.id/kpmg/pdf/IFRS_Indonesia%20GAAP_v1.pdf

3) Similarities and Differences, A comparison of IFRS, Indonesian GAAP and US GAAP (as of January 2005 by PwC) >> http://www.pwc.com/id/en/publications/assets/similarities_and_differences.pdf
Tapi perlu diingat bahwa pada tahun 2009 ada banyak sekali psak kita (revisi 2009) yang telah diadapatasi dengan IFRS sehingga tidak dapat tercover dgn resources di atas.
Sementara ini PwC Sedang merumuskan versi 2010 tetapi belum selesai (prefacenya bs diliat di http://www.pwc.com/en_ID/id/publications/assets/IFRS-preface.pdf) sehingga belum bs dipublish. Deloitte jg kabarnya sudah membuat versi 2009 tetapi jg blm dipublish.
Resources lengkap mengenai perkembangan IFRS bisa diliat di http://www.iasplus.com/ yang difasilitasi oleh Deloitte.
Semoga bermanfaat.