Disclosure and

Accountability
Group 7:
Maghfira Iza H - 1706072405
Ruth Angeli C. Wullur - 1806134556
Hadila Franciska - 170605867
 Table of Contents

01 Disclosure and Transparency

02 Financial Statement

03 04
Annual Report and
Sustainability Report Other Report

05
Case: Disclosure and
Transparency - CIMB Niaga Tbk
01 Disclosure and
Transparency
Disclosure
Statement released by a company, Transparency
business, or corporation that identifies
the financial strategies that are being
used and reveals things like costs and Making information as accessible as
profits for a certain calendar period. possible.
Public disclosure is required to report material information to all
stakeholders.

A. Disclosure should include, but not limited to, material information on:
✘ The financial and operating result of the company
✘ Company objectives and non financial information
✘ Major share ownership, including beneficial owners and voting rights
✘ Remuneration of members of the board and key executives
✘ Information about board members, including their qualification,
selection process, other company directorships, and whether they are
regarded as independent by the board
✘ Related party transaction
✘ Foreseeable risk factor
✘ Issues regarding employees and other stakeholders
✘ Governance structures and policies
B. Information should be prepared and disclosed in accordance with high quality standard of
accounting and financial, also non financial reporting.

C. An annual audit should be conducted by an independent, competent,and qualified auditor

in accordance with high-quality auditing standards in order to provide an external and
objective assurance to the board and shareholders that the financial statements fairly
represent the financial position and performance of the company in all material aspects.

D. External auditors should be accountable to the shareholders and owe a duty to the
company to exercise due professional care in the conduct of the audit.
02 Financial Statement
 Financial Statement
According to PSAK 1, the Financial Report is a structured presentation of the financial position and
financial performance of an entity. The purpose of the report finance is to provide information about
financial position, performance finance, and the entity's cash flow that is beneficial to most of the
people report users in economic decision making.

Accountability, Transparency and Financial Reporting are three things which cannot be separated.
According to the Institute for State Administration Accountability is an obligation to convey
accountability or to answer and explain the performance and actions of a person / body law /
collective leadership of an organization to parties who have rights or has the authority to request
information or accountability. Existence Financial reports are a form of accountability for a company
and must done transparently.
 Role of Audit Committee
The main responsibility of an audit committee is to 6. Review the significant changes between the periods and
oversee reports corporate finance and related disclosures. ask for an explanation further regarding these changes to
Things that need to be done by the audit committee in management. Management must be able to provide an
order to supervise Good financial statements are as acceptable (reasonable) explanation and consistent
follows: 7. Be aware of the possibility of transactions with related
parties and take a good look at the fairness of the
1. Understand the business, related to its operations and transaction.
the industry to be able to assess effectively 8. Understand how special items are disclosed, including
2. Focus more on areas that are complex, difficult, and those that are not required to be disclosed, unusual, or
have risks high. reported separate.
3. Understand how management and external auditors do 9. Oversee interim financial statements and related
conduct materiality evaluations and also have their own disclosures, whether complete and consistent
views above the level of materiality. 10. Understand the basis of management's belief in financial
4. Understand the accounting policies used by the statements has contained all transactions and appropriate
company, and whether the policy is acceptable disclosures
(reasonable) and appropriate 11. Look at the completeness and transparency of narrative
5. Understand which areas are using estimates, see the reports (additional disclosures regarding risks and outcomes)
impact from use, evaluate, and judge whether it is reliable 12. Reviewing earning guidance used in the financial
or not statements
13. Review comment letters (documents provided by
regulators) and responses
given management
 Rules Regarding Financial Statement
Accountability is becoming an increasingly important issue when an entity become public property.
Obligation to report owned company owned a family is certainly different from a government agency.
More and more involving the public, the greater the obligation account for. Of course, government
agencies are required to implement accountability and transparency. According to Law Number 17 of
2003 concerning finance country. In the administration and management of state finances, it is
necessary application of the following principles:

1. Accountability is results-oriented
2. Professionalism
3. Proportionality
4. Openness in the management of state finances
5. Financial Audit by an independent and independent audit agency independently

The existence of this principle supports the Indonesian government to implement good
government governance.
03 Annual Reports and
Sustainability Reports
 Annual Report
An annual report is a document that public corporations must
provide annually to shareholders that describes their
operations and financial conditions.

Regulation: UU nomor 40 tahun 2007 (UUPT) Pasal 66-69

Typically, an annual report contain the following sections:

● General corporate information
● Operating and financial highlights
● Letter to the shareholders from the CEO
● Narrative text, graphics, and photos
● Management's discussion and analysis (MD&A)
● Financial statements
● Notes to the financial statements
● Auditor's report
● Summary of financial data
● Accounting policies
Sustainability Report
Sustainability Reporting is an overview of a
company’s economic, environmental and social
impacts, caused by its everyday activities.

Sustainability reporting ensures organizations

consider their impacts on sustainability issues, and
enables them to be transparent about the risks and
opportunities they face.

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Sustainability Report
Most used global standard:
(1) Global Reporting Initiative (GRI) and
(2) Sustainability Accounting Standards Board (SASB)

● The GRI Standards focus on framework and GRI and SASB plan to make a
supporting standards on a wide range of collaboration to create a better
sustainability topics and are aligned with standard, with focus on delivering
international instruments for responsible communication materials to help
business behavior. stakeholders better understand how
● SASB’s industry-specific standards identify the standards may be used
the subset of sustainability-related risks and concurrently.
opportunities most likely to affect a company’s
financial and operating performance or risk These resources are planned to be
profile delivered before the end of 2020
04 Other Reports
GCG Reports
Example
GCG Reports
Example
GCG Reports
Example
05
Case : Disclosure and
Transparency of CIMB
Niaga Tbk
 SELF-ASSESSMENT RESULTS OF GCG IMPLEMENTATION

Assessment Procedures and Criteria

CIMB Niaga conducts self-assessment on the implementation of its Good Corporate Governance principles
(Transparency, Accountability, Responsibility, Independency, as well as Fairness and Equality) in accordance with
OJK Regulation No. 55/POJK.03/2016 and OJK Circular Letter No. 13/POJK.03/2017 regarding Implementation of
Governance for Commercial Banks. GCG assessment is also intended to generate a Governance Rating which is a
factor in determining the Commercial Bank Soundness Level in accordance with OJK Regulation No.
4/POJK.03/2016. There are 3 (three) aspects of Governance, namely structure, process and outcome, of 11 (eleven)
factors in the governance implementation assessment.

Assessor
Self-assessment of the implementation of Bank Governance involves the Board of Commissioners, Board of
Directors, Independent Parties, Executive Officers and independent units in the Bank to produce a comprehensive
and structured assessment of the effectiveness of the Governance system and the quality of the Bank Governance
outcomes. The self-assessment also includes the implementation of Governance in subsidiaries in accordance
with the relevant stipulations.
 Disclosure and Transparency
All of CIMB Niaga Bank Annual Report refers to the applicable regulations regarding the
delivery of transparent information which must be set forth in the annual report.And all of
the annual report shows the following chapters:
● Performance Highlights
Presents financial information in comparison over 5 fiscal years.
● Management Reports
Presents information regarding supervision and implementation of strategic policies,
achievement of fiscal years and implementation of corporate governance from a
management point of view.
● Company Profile
Presents general information about CIMB Niaga, milestones, vision and mission, as well as
other related information.
 ● Management Discussion and Analysis
Presents analysis of CIMB Niaga’s performance in all fiscal years that include macro-economy and
banking reviews, achievement in each business segment, analysis of financial performance, and
information regarding material transactions.
● Risk Management
Presents general information regarding risk management system, types of risks and their management,
as well as a review of CIMB Niaga’s effectiveness in risk management.
● Business Support Review
Presents information regarding CIMB Niaga’s business performance support functions which cover
human resources, information technology, and marketing strategies.
● Corporate Governance Report
Presents complete and detailed information regarding implementation of corporate governance by CIMB
Niaga pursuant to applicable regulations and standards.
● Corporate Social Responsibility
Presents the program policy and implementation of corporate social activities which cover
environment, labour, health, work safety, community social development, and responsibility towards
customers.