What is psak in accounting?

What is psak in accounting?

Statement of Financial Accounting Standard (PSAK) No.

What is psak in Indonesia?

PwC Indonesia. Accounting rules and principles. Introduction. This pocket guide provides a summary of the recognition, measurement and presentation requirements of Indonesia financial accounting standards (PSAK) applicable for financial statements beginning period on or after 1 January 2020, unless otherwise indicated.

What does psak require with respect to accounting for goodwill?

Before 2011, accounting for goodwill was regulated by PSAK 48 requiring that goodwill arising from acquisition to be recognized and amortized on a systematic basis over its useful life. Paragraph 89 describes that accounting for an intangible assets is based on its useful life.

What are the new categories of financial assets under PSAK 71 IFRS 9 financial Instruments?

The 3 main measurement categories for financial assets are: Amortized Cost According to PSAK 71 (IFRS 9); Financial asset is measured at amortized cost if the financial asset is held with an objective to collect the contractual cash flows (“hold-to-collect”) and the terms of the contractual financial asset can give …

What psak 73?

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 a consideration. the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration.

Does Indonesia use IFRS?

Indonesia has not adopted IFRS Standards. Indonesia’s commitment is to support IFRS Standards as the globally accepted accounting standard and to continue with the IFRS Standards convergence process, further minimising the gap between SAK and IFRS.

Does Indonesia apply IFRS?

How do you account for bearer plants?

A bearer plant should be accounted for as property, plant and equipment (PPE) in accordance with Ind AS 16. Therefore, companies will now be required to measure bearer plants initially at cost and will thereafter have an option to apply either the cost or the revaluation model.

How does psak 71 affect banking?

PSAK 71 raises the risk that more assets will have to be measured at fair value with changes in fair value recognised in profit and loss as they arise. Earlier recognition of impairment losses on receivables and loans, including trade receivables.

When there are significant costs required to rework the asset so it could be directed to another customer it could indicate that the asset has no alternative use?

Practical limitations, such as significant costs required to rework the asset so it could be directed to another customer, could also indicate that the asset has no alternative use.

Does Indonesia use GAAP or IFRS?

COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS Indonesia has not adopted IFRS Standards. Indonesia’s commitment is to support IFRS Standards as the globally accepted accounting standard and to continue with the IFRS Standards convergence process, further minimising the gap between SAK and IFRS.

Who sets accounting standards Indonesia?

The Government Accounting Standard Committee (KSAP), established under Minister of Finance Decree No. 379 of 2004, is responsible for setting Public Sector Accounting Standards in Indonesia.