Ifrs VS Psak
Ifrs VS Psak
Ifrs VS Psak
General issues Form and elements of financial statements Statement of changes in equity Statement of cash flows Basis of accounting Consolidation Business combinations Foreign exchange translation Changes in accounting policies and estimates, and errors Events after the balance sheet date
3 3 6 7 8 9 12 14 15 16
3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
Specific balance sheet items General Property, plant and equipment Intangible assets and goodwill Investment property Investments in associates and joint ventures Financial instruments Inventories Biological assets Impairment Equity Provisions Deferred Tax Contingent assets and liabilities
17 17 18 20 22 23 25 27 28 29 30 31 32 33
Specific income statement items General Revenue Government grants Employee benefits Share-based payments Financial income and expense Income tax (current tax) Unusual or exceptional items
34 34 35 36 37 39 41 42 43
5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11
Special topics Leases Segment reporting Earnings per share Non-current assets held for sale and discontinued operations Related party disclosures Financial instruments: presentation and disclosure Non-monetary transactions Accompanying financial and other information Interim financial reporting Insurance contracts Extractive activities
44 44 47 48 50 52 54 55 56 57 58 60
62
International standards issued through 1 July 2008 that were in effect as of the date of the comparisons in this publication PSAKs issued through 1 July 2008 that were in effect as of the date of the comparisons in this publication
62 65 68 68
Appendix B Forthcoming requirements B.1 International standards, or amendments thereof, issued through 1 July 2008, that become effective subsequent to the date of comparisons in this publication B.2 PSAKs issued or revised through 1 July 2008 that become effective subsequent to the date of comparisons in this publication
69
1
1.1
Background
Introduction INA GAAP
(Law No. 1/1995, Indonesian Capital Market Supervisor y Board (BAPEPAM) Rules and Regulations, Framework, PSAK 1, PSAK 25) INA GAAP is the term used to indicate the whole body of authoritative accounting literature, including the Framework for the Preparation and Presentation of Financial Statements, promulgated by the Indonesian Accounting Standards Board (DSAK), which is a body designated by the Indonesian Institute of Accountants (IAI) to establish authoritative accounting pronouncements. In addition, it is also meant to include BAPEPAM rules and regulations on financial reporting, which have to be complied with by companies listed in Indonesia. The principal sources of INA GAAP are Statements of Financial Accounting Standards (PSAKs) and their interpretations (ISAKs)-all issued by DSAK. INA GAAP covers the accounting pronouncements for use by profit- and nonprofit-oriented entities, as well as Syariah entities. Nonprofit oriented and Syariah entities are scoped out for this GAAP comparison purpose. Any entity claiming compliance with INA GAAP must comply with all the elements thereof. However, an entity does not have to provide an explicit statement of compliance with Indonesian GAAP.
IFRSs
(IASC Foundation Constitution, Preface to IFRSs, IAS 1, IAS 8)
IFRSs is the term used to indicate the whole body of IASB authoritative literature.
Any entity claiming compliance with IFRSs must comply with all standards and interpretations, including disclosure requirements. The entity has to provide an explicit statement of compliance with IFRSs. The overriding requirement of IFRSs is for the financial statements to give a fair presentation (or true and fair view)
PSAKs do not provide a specific overriding requirement for financial statements to give a fair presentation. Nevertheless, this concept is embedded in the Indonesian Auditing Standards. AU section 508 states that circumstances not affecting the auditor s unqualified opinion include the situation where in order to prevent the financial statements from being misleading because of unusual circumstances, the financial statements contain a departure from an accounting principle established by IAI. A hierarchy of alternative source is specified when IFRSs do not cover a particular issue. There are no special standards or exemptions for small- and medium-sized entities (SME). However, there are special standards for Syariah transactions.
1.2
2
2.1
General issues
Form and elements of financial statements (PSAK 1, PSAK 4)
The following are presented: balance sheet, income statement, statement of changes in equity, statement of cash flows, and notes including accounting policies. Prescriptive formats exist for balance sheet and income statement of specialized industr y such as financial institutions, including leasing company.
Comparative information is required for the preceding period only, but additional periods and information may be presented. Parent companies are required to present consolidated financial statements.
Unlike INA GAAP under IFRSs, an entity presents , consolidated financial statements unless specific criteria are met. An entity without subsidiaries but with an associate or jointly controlled entity must prepare individual financial statements unless specific criteria are met. Similar to INA GAAP .
There is no requirement to present separate financial statements in addition to consolidated or individual financial statements, although this is permitted. An entity accounts for an investment in an associate using the equity method, and an investment in a jointly controlled entity using the equity method or proportionate consolidation. A long-term financial liability that is due within twelve months after the balance sheet date shall be classified as a long-term liability if specific criteria are met, including the completion of an agreement to refinance, or to reschedule payments, on a long-term basis before the financial statements are authorized for issue.
Unlike INA GAAP, under IFRSs, such long-term financial liability shall only be classified as a long-term liability if the agreement to refinance, or to reschedule payments, on a long-term basis is completed on or before the balance sheet date.
(PSAK 1, PSAK 4)
INA GAAP does not specifically discuss the classification issue of a long-term financial liability that is payable on demand driven by a breach of a condition of loan agreement on or before the balance sheet date but a waiver from lender is obtained between the balance sheet date and the date financial statements are authorized for issue. However, by means of analogy with guidance discussed in the preceding paragraph, the long-term financial liability in this situation may also be classified as a long-term liability. Presentation of extraordinary items as line items on the face of income statement is required in specific circumstances. Profit or loss attributable to minority interest is presented in the consolidated income statement as an item of income or expense.
IFRSs require disclosure, on the face of the income statement, of the entity s profit or loss for the period and the allocation of that amount between profit or loss attributable to minority interest and profit or loss attributable to equity holders of the parent. The allocated amounts are not to be presented as items of income or expense.
Notes: The revised version of IAS 1 was published by the IASB in September 2007 and is effective for annual reporting periods beginning on or after 1 Januar y 2009. Below is the summary of key forthcoming requirements under these revised standards: A complete set of financial statements comprises: statement of financial position; income statement; statement of comprehensive income; statement of changes in equity; statement of cash flows; and notes to the financial statements, including accounting policies. The above changes to the titles of the different statements are not mandatory. In addition, the four statements are now referred to as financial statements rather than primary statements. scribe all non-owner changes in equity; this term replaces the phrase recognized income and expense . An entity must present either a single statement of comprehensive income (effectively combining both the income statement and all non-owner changes in equity in a single statement), or an income statement and a separate statement of comprehensive income.
transactions with owners in their capacity as owners and the reconciliation of the opening and closing balance of each component of equity in the notes to the financial statements has been removed under the revised standard. These disclosures should be presented in the statement of changes in equity. In addition, an entity is not permitted to present components of comprehensive income in the statement of changes in equity. The revised version of IAS 1 requires separate disclosure of reclassification (formerly recycling ) adjustments for each component of comprehensive income. An entity may present these reclassification adjustments either in the statement of comprehensive income or in the notes to the financial statements.
each component of comprehensive income to be disclosed, either in the statement of comprehensive income or in the notes to the financial statements.
of dividends and related per-shares amounts on the face of the income statement. Under this revised standards, such information has to be disclosed on the face of the statement of changes in equity or in the notes. counting policy, the correction of an error, or the reclassification of items in the financial statements, the revised version of IAS 1 requires an additional statement of financial position to be presented as at the beginning of the comparative period. In such cases three statements of financial position will be presented.
or the correction of an error should be presented separately in the statement of changes in equity.
rather than using the terms balance sheet date or reporting date.
2.2
(IAS 1, IAS 8)
There is a choice of presenting as a primary statement either a statement of recognized income and expense or a statement of changes in equity that includes a subtotal for recognized income and expense. The statement of recognized income and expense combines net profit or loss with all other non-owner movements recognized directly in equity.
An item of income or expense may be recognized directly in equity only when a standard permits or requires it. Minority interest is not included as an element of equity and therefore is not included in the statement of changes in equity.
IFRSs require disclosure, on the face of the income statement, of the entity s profit or loss for the period and the allocation of that amount between profit or loss attributable to minority interest and profit or loss attributable to equity holders of the parent. The allocated amounts are not to be presented as items of income or expense.
Notes: Please also refer to the summary of key forthcoming requirements under the revised IAS 1 in section 2.1 Form and elements of financial statements.
2.3
(IAS 7)
Similar to INA GAAP .
Similar to INA GAAP except that there is no , requirement to use the direct method for listed companies.
2.4
An entity s financial statement reporting currency should generally be Rupiah. Currency other than Rupiah could be used as the reporting currency as long as it is the functional currency of the reporting entity. The reporting currency is also the currency in which the entity s results and financial position are measured. Consequently, entities that have functional currencies other than Rupiah but elect to use Rupiah as their reporting currency will have to measure their results and financial position in Rupiah, rather than in their functional currencies.
Like INA GAAP IFRSs also recognize functional , currency and presentation currency. However, the results and financial position of an entity shall be measured in its functional currency. IFRSs permit an entity to present its financial statements in any currency (or currencies). When the presentation currency of an entity is not its functional currency, the results and financial position of the entity are measured in the functional currency and translated using the current rate method into the presentation currency.
2.5
Potential voting rights are not taken into account in assessing control.
An entity is required to exclude from consolidation its subsidiary that is either: Operating under severe long-term restrictions that significantly impair its ability to transfer funds to the parent, or Acquired exclusively with the intention of disposal.
Special purpose entities are consolidated in many cases when benefits flow back to the sponsor. Minority interests are presented as a separate line item in the balance sheet between liabilities and equity. Generally, uniform accounting policies must be used throughout the group. The difference between the reporting dates of a parent and a subsidiary cannot be more than three months. There are choices of benchmark and allowed alternative accounting treatments for the allocation of cost of acquisition. Under the benchmark treatment, the identifiable assets and liabilities recognized should be measured at the aggregate of the fair value of the identifiable assets and liabilities acquired as at the date of the exchange transaction to the extent of the acquirer's interest obtained in the exchange transaction, and the minority's proportion of the preacquisition carrying amounts of the identifiable assets and liabilities of the subsidiary. Under the allowed alternative treatment, the net identifiable assets over which the acquirer has obtained control are stated at their fair values, regardless of whether the acquirer has acquired all or only some of the capital of the other enterprise or has acquired the assets directly. Consequently, any minority interest is stated at the minority s proportion of the fair values of the net identifiable assets of the subsidiary.
Minority interests are classified within equity but separate from parent s equity (see 3.10).
IFRSs require the acquiree s identifiable assets, liabilities and contingent liabilities recognized as part of allocating the cost of the combination to be measured initially by the acquirer at their fair values at the acquisition date. Therefore, any minority interest in the acquiree is stated at the minority s proportion of the net fair values of those items. This is consistent with allowed alternative treatment under INA GAAP .
Minority interests in the profit or loss of the group are presented as an allocation of the net profit or loss for the period; they are not recognized as an item of income or expense in the income statement. Intragroup transactions are eliminated in full, except to the extent that the transaction is evidence of impairment (see 3.9).
Notes: Amended IAS 27 was published by the IASB in January 2008 and is effective for annual reporting periods beginning on or after 1 July 2009. The following are some amendments in the revised standards:
which is defined as the equity in a subsidiary not attributable, directly or indirectly, to a parent .
interest, including negative other comprehensive income, are allocated to the non-controlling interest even if doing so causes the non-controlling interest to be in a deficit position. Unless there is a contractual arrangement that specifies otherwise, the amounts allocated are in proportion to ownership interests.
subsidiary after control is obtained that do not result in a loss of control to be accounted for as transactions with equity holders in their capacity as equity holders. As a result no gain or loss on such changes is recognized in profit or loss. Also, no change in the carrying amounts of assets (including goodwill) or liabilities is recognized as a result of such transactions. This approach is consistent with treating non-controlling interest as a separate component of equity. The carrying amount of non-controlling interest is adjusted to reflect the relative change in interest in the subsidiary s net assets. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received, if any, is recognized directly in equity and attributed to equity holders of the parent.
recognized based on the fair value of the consideration paid. Any changes in fair value subsequent to the acquisition date are recognized in profit or loss
10
resulting gain or loss is recognize.d in profit or loss and includes the parent s share of gains or losses relating to the underlying assets and liabilities that were recognized previously directly in equity. Any retained non-controlling equity investment remaining in the former subsidiary is remeasured to its fair value at the date that control is lost. The gain or loss on such remeasurement is included in the determination of the gain or loss arising on the loss of control. From the date that control is lost, the fair value of the remaining investment becomes its cost for the purpose of subsequent accounting in accordance with IAS 39, IAS 28 or IAS 31 Interests in Joint Ventures as appropriate.
11
2.6
The accounting acquirer may not be the legal acquirer in which case the transaction is accounted for as a reverse acquisition. The date of acquisition is the date on which effective control is transferred to the acquirer. The cost of an acquisition, which is determined at the date of exchange, is the amount of cash or cash equivalents paid, plus the fair value of the other purchase consideration given, including equity instruments issued and the fair value of liabilities assumed plus any costs directly attributable to the acquisition. When payment for a business combination is deferred, the amount payable is discounted to its present value. A liability for contingent consideration is recognized as soon as payment becomes probable and the amount can be measured reliably. The acquiree s identifiable assets, liabilities and contingent liabilities are measured at fair value at the date of acquisition. There is no specific guidance for non-current assets (or disposal groups) held for sale; accordingly the normal measurement rules apply to these items (see 5.4). The cost of restructuring an acquired entity is a postacquisition expense. Goodwill is amortized (see 3.3). Adjustments to goodwill must be made before the end of the first financial year following the year of acquisition. Changes are made by restating the original estimate. When the fair value of the identifiable assets and liabilities exceeds the acquisition cost, the fair value of non-monetary assets acquired is reduced proportionately to the extent of the excess. When the reduction of the fair value of the entire nonmonetary assets acquired cannot cover the excess, the remaining difference is recognized as negative goodwill. Negative goodwill is amortized over a period not less than 20 years. 12
Similar to INA GAAP; however, non-current assets (or disposal groups) classified as held for sale are measured at fair value less costs to sell at the date of acquisition (see 5.4).
Goodwill is not amortized (see 3.3). Subject to limited exception, adjustments to goodwill must be made within 12 months of the acquisition. Similar to INA GAAP changes are made by restating , the original estimate. When the fair value of the identifiable assets, liabilities and contingent liabilities exceeds the acquisition cost, the acquirer must reassess the fair value and then recognize any remaining excess in profit or loss immediately on acquisition.
Notes: In January 2008 the IASB published the revised version of IFRS 3 Business Combinations, which supersedes the current version of IFRS 3, together with amendments to IAS 27 Consolidated and Separate Financial Statements. This revised version of standard is effective for annual reporting periods beginning on or after 1 July 2009. The following are some amendments in the revised standards:
in which separate entities are brought together to form a reporting entity by contract alone without obtaining an ownership interest, including combinations in which separate entities are brought together by contract to form a dual listed corporation, are included in the scope of revised IFRS 3.
control and is defined as a transaction or other event in which an acquirer obtains control of one or more businesses .
fees, advisory, legal and accounting fees, and valuation costs) will be accounted for separately from the business combination itself, generally as expenses.
recognized at fair value at the acquisition date, including contingent consideration arrangements. The consideration transferred includes any non-controlling (minority) equity investment in the acquiree that the acquirer owned immediately before the acquisition. Changes in the value of previously owned non-controlling interests will be recognized in profit or loss. Subsequent adjustments to contingent purchase consideration are postacquisition adjustments that will not result in an adjustment to goodwill.
the date of acquisition, which means that goodwill will include the portion attributable to non-controlling interest; or at its proportionate interest in the identifiable assets and liabilities of the acquiree, which means that goodwill will relate only to the interest acquired by the parent when that measurement alternative is elected.
13
2.7
An entity may present its financial statements in a currency other than its functional currency. When financial statements are translated into a presentation currency other than the functional currency, the translation procedures are the same as those for translating foreign operations. All transactions that are not denominated in an entity s functional currency are foreign currency transactions; exchange differences arising on translation generally are recognized in profit or loss. Similar to INA GAAP .
All transactions that are not denominated in an entity s reporting currency are foreign currency transactions; exchange differences arising on translation generally are recognized in profit or loss. The financial statements of foreign operations are translated into the parent s or investor s reporting currency using the foreign entity method: assets and liabilities are translated at the closing rate; revenues and expenses are translated at actual rates or appropriate averages. There is no specific guidance for financial reporting in hyperinflationary economies.
If the functional currency of a foreign operation is hyperinflationary, then current purchasing power adjustments are made to its financial statements prior to translation; the financial st atements then are translated at the closing rate at the end of the current period. Similar to INA GAAP .
When an investment in a foreign operation is disposed of the cumulative exchange differences previously recognized directly in equity are transferred to profit or loss. A foreign currency transaction is measured at the spot rate on initial recognition. Any related forward contracts are measured at fair value and may qualify as hedging instruments (see 3.6).
14
2.8
(IAS 1, IAS 8)
Similar to INA GAAP; however, there is no emphasis that only fundamental errors are corrected retrospectively.
15
2.9
Classification of liabilities may in certain cases reflect post-balance sheet agreements (see 2.1). Similar to INA GAAP .
16
3
3.1
Similar with INA GAAP. Specific discussion about offsetting financial asset and liability is provided in IAS 32. A financial asset and liability are offset and reported net only when the entity has a legally enforceable right to offset and it intends either to settle on a net basis or to settle both amounts simultaneously.
17
3.2
Cost includes the estimated cost of dismantling and removing the asset and restoring the site. Changes to an existing decommissioning or restoration obligation generally must be added to or deducted from the cost of the related asset and depreciated prospectively over the asset s remaining useful life. Cost may include qualified borrowing costs. Similar to INA GAAP .
An item of property, plant and equipment is depreciated even if it is idle. However, a non-current asset that is held for sale is not depreciated (see 5.4).
The useful life, residual value and method of depreciation must be reviewed at least at each balance sheet date. Estimated residual values reflect prices at the balance sheet date. Similar to INA GAAP .
18
(PSAK 16)
When an item of property, plant and equipment comprises individual components for which different depreciation methods or rates are appropriate, each component is accounted for separately (component accounting). Subsequent expenditure is capitalized when it is probable that future economic benefits will flow to the entity, including when the costs are for replacing a component of the item. Generally, property, plant and equipment may not be revalued to fair value except when the revaluation is effected based on government regulation. There is no specific guidance on the whether compensation for loss or impairment can be offset against the carrying amount of the asset lost or impaired. The gain or loss on disposal is the difference between the net proceeds received and the carrying amount of the asset.
Property, plant and equipment may be revalued to fair value if all items in the same class are revalued at the same time and the revaluations are kept up-to-date. Compensation for loss or impairment cannot be offset against the carrying amount of the asset lost or impaired.
Notes: On 29 May 2007, PSAK 16 (2007 revision) was issued, which is effective for annual reporting periods beginning on or after 1 January 2008. With the issuance of this revised standard, the differences noted above were eliminated, except for the difference relating to option to capitalize borrowing cost, which were in turn was eliminated in March 2007 when A revised IAS 23 was published by the IASB. The revised IAS 23 is effective for annual periods beginning on or after 1 Januar y 2009. It requires an entity to capitalize borrowing costs directly attributable to acquisition, construction or production of a qualifying asset as part of the cost of that asset. Also, it does not permit the option of immediately recognizing all borrowing costs as an expense, which was the benchmark treatment in the previous version of the standard.
19
3.3
An entity shall assess whether the useful life of an intangible asset is finite or indefinite. An intangible asset is regarded as having an indefinite life when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash flows for the entity. Acquired goodwill and other intangible assets with indefinite lives are not amortized but must be tested for impairment at least annually.
Acquired goodwill is amortized generally not longer than five years unless a longer period is justifiable but that period shall not exceed twenty years. Goodwill must be evaluated for impairment at each balance sheet date. Intangible assets are amortized over their expected useful lives, normally on a straight-line basis. There is a rebuttable presumption that the useful life cannot exceed twenty years from the date the asset is available for use.
Similar to INA GAAP intangible assets with finite , lives are amortized over their expected useful lives, normally on a straight-line basis. However, there is no rebuttable presumption about the maximum length of useful life of an intangible asset.
20
Intangible assets may be revalued to fair value only if there is an active market. Similar to INA GAAP .
The following costs cannot be capitalized as intangible assets: internally generated goodwill, research costs, costs to develop customer lists, start-up costs, and expenditure incurred on training, advertising and promotional activities or on relocation or reorganization. There is no specific guidance for accounting for software, whether for internal or external use.
Other than in respect of Web site development costs, there is no specific guidance for accounting for software, whether for internal or external use.
21
3.4
(IAS 40)
Investment property is property held to earn rentals or for capital appreciation or both.
Investment property is recognized initially at cost. Subsequent to initial recognition, all investment property should be measured using either the fair value model (subject to limited exceptions) or the cost model. When the fair value model is chosen, changes in fair value are recognized in profit or loss.
Disclosure of the fair value of all investment property is required, regardless of the measurement model used. Subsequent expenditure is capitalized only when it is probable that future economic benefits will flow to the entity, including when the costs are for replacing a component of the item. Transfers to or from investment property can be made only when there has been a change in the use of the property. Similar to INA GAAP .
There is no specific guidance on the accounting for the transfer to or from investment property.
The gain or loss on disposal is the difference between the net disposal proceeds and the carrying amount of the property.
Notes: On 29 May 2007, PSAK 13 (revision 2007) was issued, which is effective for annual reporting periods beginning on or after 1 January 2008. With the issuance of this revised standard, the differences noted above were eliminated.
22
3.5
Potential voting rights that are exercisable currently are taken into account in assessing significant influence.
IFRSs cover the accounting for all those types of joint ventures. Jointly-controlled entities may be accounted for either by proportionate consolidation or using the equity method. Similar to INA GAAP .
In respect of its interest in jointly controlled operations, a venturer shall recognize in its financial statements the assets that it controls, the liabilities and expenses that it incurs, and its share of the income that it earns from the sale of goods or services by the joint venture. In respect of its interest in jointly controlled assets, a venturer shall recognize in its financial statements its share of the jointly controlled assets, liabilities, any income from the sale or use of its share of the output of the joint venture, together with the expenses. Associates are accounted for using the equity method in both separate and consolidated financial statements.
Associates are accounted for using the equity method in the consolidated financial statements. When an entity elects, or is required by local regulations, to present separate financial statements, associates and jointly controlled entities shall be accounted for at cost or in accordance with IAS 39 in those financial statements. IFRSs do not permit an investor that continues to have significant influence over an associate not to apply the equity method even when the associate is operating under severe long-term restrictions that significantly impair its ability to transfer funds to the investor. Investments in associates and joint ventures that are classified as held for sale cease to be equity accounted or proportionately consolidated. Instead the investment is classified, measured and presented as a non-current asset held for sale in accordance with IFRS 5.
Investment in an associate is accounted for using the cost method when: (a) the associate is operating under severe long-term restrictions that significantly impair its ability to transfer funds to the investor; or (b) the associate is acquired and held with a view to its disposal in the near future.
23
When recognizing its share of losses, an investor considers not only equity investments but also other long-term interests that form part of the investor s net investment in the associate. Interests to be considered do not include trade receivables, trade payables or any long-term receivables for which adequate collateral exists (e.g. secured loans). Similar to INA GAAP .
Unrealized profits and losses on transactions with associates or joint ventures are eliminated to the extent of the investor s interest in the investee. No gains or losses are recognized when nonmonetary assets are contributed to a joint venture in exchange for an interest in assets contributed by other joint venture investors when the exchange lacks commercial substance. There is no specific guidance on how venture capital investors and similar entities should account for their interest in associates and joint ventures.
Venture capital investors and similar entities may elect not to apply the equity method for investments in associates and joint ventures and instead account for these investments as financial instruments at fair value through profit or loss (see 3.6).
24
3.6
All financial assets must be classified into loans and receivables , held-to-maturity , fair value through profit or loss or available-for-sale categories. Loans and receivables and held-to-maturity financial assets are measured at amortized cost. All other financial assets are measured at fair value (with limited exceptions). Similar to INA GAAP; however, under IFRSs, this is applicable for all available-for-sale financial assets, not just the investments. Financial liabilities, other than those held for trading purposes or designated as at fair value through profit or loss, are measured at amortized cost. A financial instrument may be designated on initial recognition as one measured at fair value through profit or loss only if certain criteria are met. Evaluating whether a transfer of a financial asset qualifies for derecognition requires considering:
Financial liabilities, other than derivatives, are generally measured at amortized cost.
transferred. If substantially all the risks and rewards are transferred, then a financial asset is derecognized. If substantially all the risks and rewards are retained, then the asset is not derecognized.
and rewards are transferred, then an asset is derecognized if control of the asset is transferred.
continues to recognize the transferred asset to the extent of its continuing involvement in the asset.
25
Notes: On 16 December 2006, PSAK 50 (revision 2006) and PSAK 55 (revision 2006) were issued, which are effective for the annual reporting periods beginning on or after 1 January 2009, early adoption is permitted. With the issuance of these revised standards, the differences noted above were eliminated.
26
3.7
(IAS 2)
Similar to INA GAAP .
The amount to recognize as an expense must be determined using the specific identification, FIFO (first-in, first-out) or weighted average method. The use of the LIFO (last-in, first-out) method is prohibited. Similar to INA GAAP .
27
3.8
(IAS 41)
Biological assets are measured at fair value unless it is not possible to measure fair value reliably, in which case they are measured at cost. All gains and losses from changes in fair value are recognized in profit or loss.
28
3.9
Generally similar to INA GAAP; however, available-foruse intangible assets should have an indefinite useful life so to require annual impairment testing.
The impairment test for these qualified intangibles may be performed at any time during an annual reporting period, provided it is performed at the same time each year.
An impairment loss is recognized if the carrying amount of an asset or cash-generating unit (CGU) exceeds the greater of its net selling price and value in use. Estimates of future cash flows used in the value in use calculation are specific to the entity, and may not be the same as the market s assessment. The discount rate used in the value in use calculation is a pre-tax rate that reflects the risks specific to the asset. An impairment loss for a CGU is allocated first by writing down goodwill, then pro rata to other assets in the CGU. There is no specific guidance on the recognition of impairment losses on revalued assets. Generally, any impairment loss is charged directly in profit and loss.
Similar to INA GAAP; nevertheless, IFRSs use the term fair value less cost to sell instead of net selling price.
An impairment loss on revalued asset is charged directly to the revaluation reserve to the extent that it reverses a previous revaluation surplus relating to the same asset. Any excess is recognized in profit or loss. Reversals of impairment are recognized, other than for impairments of goodwill.
Reversals of impairment are recognized. An impairment loss for goodwill shall not be reversed unless it was caused by a specific non recurring external event, and that a subsequent external event has occurred that reverse the effect of the previous event causing the impairment.
29
3.10 Equity (PSAK 4, PSAK 21, PSAK 41, PSAK 53, BAPEPAM Regulation No. VIII.G.7)
Instruments are classified as equity or liabilities in accordance with their economic substance. The guidance on the recognition, measurement, presentation and disclosure of equity is specified in PSAK 21 and PSAK 41. PSAK 53 specifies recognition and measurement requirements for share-based payments. Incremental costs that are attributable directly to issuing or buying back own equity instruments are recognized directly in equity, net of the related tax. Treasury shares must be reported as deduction from equity. Gains and losses on transactions in own equity instrument are reported directly in equity, not in profit or loss. Dividends and other distributions to the holders of instruments (classified as equity, in their capacity as owners), are recognized directly in equity. Minority interests are presented separately from liability and equity.
IFRSs generally contain little guidance on the recognition and measurement of equity. IFRS 2 specifies recognition and measurement requirements for share-based payments (see 4.5).
Minority interests are classified within equity but separate from parent shareholders equity (see 2.5).
30
31
A deferred tax liability (asset) is recognized unless it arises from: The initial recognition of an asset or liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting profit nor taxable profit; The initial recognition of goodwill; or Post-acquisition adjustments of goodwill for which amortization is not tax deductible A deferred tax liability is recognized for post-acquisition adjustments of goodwill for which amortization is tax deductible. Deferred tax assets and liabilities are not recognized in respect of investments in subsidiaries, associates and joint ventures if certain conditions are met.
A deferred tax liability is recognized for goodwill for which amortization is tax deductible.
There is no specific guidance on the recognition of deferred tax assets and liabilities in respect of investments in subsidiaries, associates and joint ventures. A deferred tax asset is recognized to the extent that it is probable that it can be utilized against future profits. The measurement of deferred tax is based on the expected manner of settlement (liability) or recover y (asset). Deferred tax is measured on an undiscounted basis. There is no specific guidance on the recognition of deferred tax arising from intragroup transactions. Deferred tax is classified as non-current in a classified balance sheet. Deferred tax relating to items charged or credited directly to equity is itself charged or credited directly to equity. Deferred tax is measured based on enacted or substantively enacted tax rates. There is no specific guidance on the recognition of taxes payable on distributions.
Similar to INA GAAP . Deferred tax arising from intragroup transactions is computed at the tax rate applicable to the purchaser. Similar to INA GAAP .
Taxes payable on distributions are recognized at the same time as the distribution.
32
(IAS 37 IFRS 3) ,
Similar to INA GAAP .
Contingent assets are not recognized in the balance sheet unless their realization is virtually certain. If their existence is probable, details are disclosed in the notes to the financial statements. Contingent liabilities assumed in a business combination are recognized if their fair value is reliably measurable (see 2.6).
33
4
4.1
(IAS 1, IAS 8)
Similar to INA GAAP .
34
4.2
Notes: IFRIC 13 Customer Loyalty Programmes was published by the IASB in June 2007 and is effective for annual reporting periods beginning on or after 1 July 2008. This interpretation requires an entity to recognize award credits as a separately identifiable component of revenue and to defer consequently the recognition of revenue for any award credits. The interpretation also requires the consideration received or receivable from customer to be allocated by reference to fair values but does not prescribe a certain allocation method, i.e., relative fair value.
35
4.3
36
4.4
(IAS 19)
Similar to INA GAAP .
On first adopting IAS 19, an enterprise is permitted to recognize any resulting increase in its liability for postemployment benefits over not more than five years. If the adoption of the standard decreases the liability, an enterprise is required to recognize the decrease immediately.
37
(PSAK 24)
The fair value of any qualifying plan assets of defined benefit plans, including qualifying insurance policies, are offset against the obligation. Actuarial gains and losses of defined benefit plans that exceed a corridor are required to be recognized over the average remaining working lives of employees in the plan. Faster recognition is allowed. Liabilities and expenses for vested past service costs under a defined benefit plan are recognized immediately. Liabilities and expenses for unvested past service costs under a defined benefit plan are recognized over the vesting period. If a defined benefit plan has assets in excess of the obligation, then the amount of any net asset recognized is limited to available future benefits from the plan and unrecognized actuarial losses and past service costs. The expense for long-term employee benefits is accrued over the service period. Redundancy costs are not recognized until the redundancy has been communicated to affected employees.
(IAS 19)
Similar to INA GAAP .
Similar to INA GAAP. In addition, alternatively an entity may elect to recognize all actuarial gains and losses immediately directly in equity.
38
4.5
(IFRS 2, IFRIC 8)
Similar to INA GAAP .
Generally similar to INA GAAP; however, goods or services acquired and the liability incurred under cash-settled share-based payment transactions shall be measured at the fair value of the liability.
Estimates of the number of equity-settled instruments that vest are adjusted to the actual numbers that vest. For cash-settled transactions, an entity recognizes the liability incurred. Cash-settled transactions are remeasured at each balance sheet date and at the settlement date. For equity-settled transactions an entity recognizes a corresponding increase in equity.
Generally similar to INA GAAP; however, IFRSs require that adjustment to estimates is not made when forfeitures are due to market-based conditions. Similar to INA GAAP .
Notes: IFRS 2 was revised by the IASB in January 2008 and is effective for annual reporting periods beginning on or after 1 January 2009. The following are the key amendments in the revised standards:
The definition of vesting conditions in IFRS 2 has been amended to clarify that vesting conditions are limited to service conditions and performance conditions.
39
The amended definition of vesting conditions clarifies that performance conditions are those conditions that require the counterparty to complete a specified period of service, either explicitly or implicitly, and specify performance targets to be met. Conditions, other than service or performance conditions, are considered non-vesting conditions. Both vesting conditions and non-vesting conditions determine whether the counterparty receives a share-based payment award. If a condition does not determine whether the entity receives the services that entitle the counterparty to a share-based payment, then the condition is a non-vesting condition.
Under the amendment, non-vesting conditions are taken into account in measuring the grant date fair value of the share-based payment and there is no true-up for differences between expected and actual outcomes. Therefore, if all vesting conditions are met, then the entity will recognize the grant date fair value of the share-based payment as compensation cost even if the counterparty does not become entitled to the share-based payment due to a failure to meet a non-vesting condition. When either the entity or the counterparty can choose whether to meet a non-vesting condition and one chooses not to do so during the vesting period, the amendment requires that the failure to meet the condition to be treated as a cancellation, i.e., the standard precludes treating the failure to meet the non-vesting condition as a forfeiture. Under cancellation accounting, the amount of the compensation cost that otherwise would be recognized over the remainder of the vesting period is recognized immediately (accelerated vesting), normally in profit or loss. When neither the entity nor the counterparty can choose whether to meet a non-vesting condition, there is no change to the accounting if the nonvesting condition is not satisfied and the entity continues to recognize the compensation cost over the remaining vesting period.
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4.6
Financial income and expense (PSAK 13, PSAK 23, PSAK 26, PSAK 53, BAPEPAM Regulation No. VIII.G.7)
Interest income and expense is calculated using the effective interest method. There is no specific guidance on how to report dividends on shares classified as liabilities. Generally dividends on shares are reported as deductions to retained earnings. Incremental transaction costs directly related to raising finance or acquiring a financial asset are included in the initial measurement of the instrument unless the instrument is categorized as a financial asset or liability at fair value through profit or loss. Interest generally is expensed as incurred. Interest related to qualifying assets, i.e. those that take a substantial period of time (minimum 12 months) to get ready for its intended use or sale, must be capitalized if certain conditions are met. Interest on both general borrowings and specific borrowings is eligible for capitalization. The amount capitalized is net of investment income on the temporary investment of specific borrowings. Notes: IAS 23 was revised by the IASB in March 2007 and is effective for annual reporting periods beginning on or after 1 January 2009. The revised standard requires an entity to capitalize borrowing costs directly attributable to acquisition, construction or production of a qualifying asset as part of the cost of that asset, which is similar to INA GAAP Also, it does not permit the option of immediately . recognizing all borrowing costs as an expense, which was the benchmark treatment in the previous version of the standard.
Dividends on shares classified as liabilities are reported as a financial expenses and not a dividend distribution.
Similar with INA GAAP except that: (1) capitalization of , interest is a policy election, and (2) there is no specific guidance on the determination of the substantial period of time .
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4.7
(IAS 12)
Similar to INA GAAP .
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4.8
(IAS 1)
Similar to INA GAAP .
Presentation or disclosure of items of income and expense net of tax or characterized as extraordinar y items in the income statement or notes is prohibited.
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5
5.1
Special topics
Leases (PSAK 13, PSAK 30, PSAK 47)
A lease is classified as either a finance lease or an operating lease. Lease classification depends on whether substantially all of the risks and rewards incidental to ownership of a leased asset have been transferred from the lessor to the lessee; nevertheless, in order to be classified as a finance lease, a lease must satisfy all of the following criteria: the lessee has the option to purchase the leased asset at the end of the lease term at a price agreed at the inception of the lease; the sum of periodic lease payments made by the lessee, plus the residual value, covers the acquisition price of the leased assets and the related interest (full payout lease); and a minimum lease term of 2 years. Under a finance lease, the lessor recognizes a finance lease receivable and the lessee recognizes the leased asset and a liability for future lease payments. Finance income and expenses are recognized to reflect a constant rate of return on the unpaid balance. At the commencement of the lease term, lessees shall recognize finance leases as assets and liabilities in their balance sheets at amounts equal to the present value of the minimum lease payments.
Lease classification depends on whether substantially all of the risks and rewards incidental to ownership of a leased asset have been transferred from the lessor to the lessee. Examples and indicators that would normally lead to a lease being classified as a finance lease are given, nonetheless they are not always conclusive. If it is clear from other features that the lease does not transfer substantially all risks and rewards incidental to ownership, the lease is classified as an operating lease.
At the commencement of the lease term, lessees shall recognize finance leases as assets and liabilities in their balance sheets at amounts equal to the lower of the fair value of the leased property or the present value of the minimum lease payments, each determined at the inception of the lease. Similar to INA GAAP .
Under an operating lease, both parties treat the lease as an executory contract. The lease does not result in derecognition of the asset by the lessor and the lessee recognizes an expense for the lease payments over the lease term. There is no specific guidance on the accounting for a property interest held under an operating lease. Generally, lease classification depends on the satisfaction of the 3 criteria under INA GAAP .
A lessee may classify a property interest held under an operating lease as an investment property if, and only if, the property would otherwise meet the definition of an investment property and the lessee uses the fair value model for the asset recognized. If this is done, that interest is accounted for as if it were a finance lease.
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A lease of land generally will be classified as an operating lease unless title transfers to the lessee.
A single lease of land and a building should be treated as separate leases of land and of the building and the two leases may be classified differently.
If a sale and leaseback transaction results in a finance lease, any excess of sales proceeds over the carrying amount shall not be immediately recognized as income by a seller-lessee. Instead, it shall be deferred and amortized over the lease term. If a sale and leaseback transaction results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss shall be recognized immediately. If the sale price is below fair value, any profit or loss shall be recognized immediately except that, if the loss is compensated for by future lease payments at below market price, it shall be deferred and amortized in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value shall be deferred and amortized over the period for which the asset is expected to be used. For operating leases, if the fair value at the time of a sale and leaseback transaction is less than the carrying amount of the asset, a loss equal to the amount of the difference between the carr ying amount and fair value shall be recognized immediately.
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Requirements applied to manufacturer or dealer lessors granting finance leases are ver y limited. A sales-type lease is generally a direct finance lease where the total transaction amount includes the profit determined by the manufacturers or dealer lessors.
Notes: On 27 June 2007, PSAK 30 (revision 2007) was issued, which is effective for annual reporting periods beginning on or after 1 January 2008. With the issuance of this revised standard, the differences noted above were eliminated.
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5.2
(IAS 14)
Similar to INA GAAP .
Notes: On 30 November 2006, the IASB published a new standard IFRS 8 Operating Segments, which supersedes IAS 14 Segment Reporting and is effective for annual reporting periods beginning on or after 1 January 2009. IFRS 8 requires segment disclosure based on the components of the entity that management monitors in making decisions about operating matters (the management approach ). Such components (operating segments) are identified on the basis of internal reports that the entity s chief operating decision maker reviews regularly in allocating resources to segments and in assessing their performance.
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5.3
Earnings per share (PSAK 56, BAPEPAM Regulation No. VIII.G.7 IX.C.2, and IX.C.8) ,
Basic and diluted earnings per share (EPS) are presented on the face of the income statement, with equal prominence, for all entities whose equity or debt securities are publicly traded, or that are in the process of issuing such securities. Nevertheless, there is no requirement to present EPS for continuing and discontinuing operations separately, or to disclose EPS for each class of ordinary shares. There is no requirement to disclose separate EPS data for discontinuing operations.
(IAS 33)
Basic and diluted earnings per share (EPS) for both continuing and total operations are presented on the face of the income statement, with equal prominence, for each class of ordinary shares, for all entities whose equity of debt securities are publicly traded, or that are in the process of issuing such securities.
Separate EPS data is disclosed for discontinued operations, either on the face of the income statement or in the notes to the financial statements. Similar to INA GAAP .
Basic EPS is calculated by dividing the earnings attributable to holders of ordinary equity by the weighted average number of ordinary shares outstanding during the period. For the purpose of calculating basic earnings per share, the amounts attributable to ordinary equity holders shall be adjusted for the after-tax amounts of preference dividends.
For the purpose of calculating basic earnings per share, the amounts attributable to ordinary equity holders shall be adjusted for the after-tax amounts of preference dividends, differences arising on the settlement of preference shares, and other similar effects of preference shares classified as equity. Similar to INA GAAP .
To calculate diluted EPS, profit or loss attributable to ordinary equity holders (as calculated for basic EPS), and the weighted number of shares outstanding, are adjusted for the effects of all dilutive potential ordinary shares. Contingently issuable ordinary shares are included in basic EPS from the date that all necessary conditions are satisfied and, when not yet satisfied, in diluted EPS based on the number of shares that would be issuable if the reporting date were the end of the contingency period.
48
(IAS 33)
When a contract may be settled in either cash or shares at the entity s option, it is treated as a potential ordinary share. For contracts that may be settled in ordinary shares or cash at the holder s option, the more dilutive of cash settlement and share settlement shall be used in calculating diluted earnings per share. Similar to INA GAAP .
For diluted EPS, dilutive potential ordinary shares are determined independently for each period presented. When the number of ordinary shares outstanding changes, without a corresponding change in resources, the weighted average number of ordinary shares outstanding during all periods presented is adjusted. If these changes occur after the balance sheet date but before the financial statements are authorized for issue, the per share calculations for those and any prior period financial statements presented shall be based on the new number of shares.
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5.4
Non-current assets held for sale and discontinued operations (PSAK 4, PSAK 12, PSAK 13, PSAK 16, PSAK 58)
There is no specific guidance on the accounting for assets held for sale (or disposal group). The only guidance in measuring fixed assets held for sale is briefly provided in PSAK 16. Other assets and liabilities are accounted for under the general requirements for those items. There is no specific guidance on the classification of non-current assets held for sale. PSAK 16 only specifies that idle fixed assets shall be classified as other assets. Other assets and liabilities are accounted for under the general requirements for those items.
Non-current assets (and some groups of assets and liabilities known as disposal groups) are classified as held for sale when their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the assets (or disposal groups) must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable. Comparative are not restated when an asset or disposal group is classified as held for sale. Non-current assets (and disposal groups) held for sale generally are measured at the lower of carrying amount and fair value less costs to sell and are disclosed separately on the face of the balance sheet.
There is no specific guidance on the accounting for assets held for sale (or disposal group). PSAK 16 briefly specifies that idle fixed assets and fixed assets held for sale are measured at the lower of carrying amount and net realizable value. There is no specific guidance on the amortization or depreciation of assets classified as held for sale. Nevertheless, since accounting for the asset should be a process of valuation rather than allocation, assets held for sale generally are not depreciated. Only subsidiaries acquired with a view to resale are exempt from consolidation, therefore subsidiaries are generally consolidated even if they are classified as held for sale. There are no exemptions from the normal accounting for investments in an associate or jointly controlled entity that are held for sale.
Subsidiaries are consolidated even if they are classified as held for sale (see 2.5). However, an investment in an associate or jointly-controlled entity classified as held for sale is not equity accounted or proportionately consolidated.
50
There is no special measurement for discontinued operations. However, discontinued operations may include assets (or disposal group) held for sale which are subject to held for sale measurement requirements. Generally, the separate presentation of discontinued operations is limited to those operations that are a separate major line of business or geographical area and subsidiaries acquired exclusively with a view to resale.
The results of discontinued operations are presented separately on the face of the income statement. An analysis of the results is presented either on the face of the income statement or in the notes to the financial statements.
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5.5
Related party disclosures (PSAK 7 BAPEPAM Regulation , No. VIII.G.7 Decree of BAPEPAM s , Chairman No. X.K.6)
In considering each possible related party relationship, attention is directed to the substance of the relationship and not merely the legal form. Related party relationship include those between entities when direct or indirect control exists, for example, subsidiaries, parents and entities under common control. Investments involving joint control or significant influence also create related party relationships. Definition of related party is not as comprehensive as IFRS. Generally, similar to IFRS, in considering each possible related party relationship, attention is directed to the substance of the relationship and not merely the legal form.
(IAS 24)
and
employees of an entity, or of any entity that is a related party to that entity. Key management, including directors and their close family members, also are related parties. No disclosure of related party transactions is required in financial statements of state-controlled enterprises of transactions with other state-controlled enterprises. Generally, there are no special recognition or measurement requirements for related party transactions. Nevertheless, PSAK 7 includes the discussions on the pricing of related party transactions Related party relationship shall be disclosed when there have been transactions between the related parties. Similar to INA GAAP .
There are no special recognition or measurement requirements for related party transactions.
Disclosure of related party relationships between parents and subsidiaries is required, even if there have not been any transactions between them. An entity shall disclose the name of the entity s parent and, if different, the ultimate controlling party. If neither the entity s parent nor the ultimate controlling party produces financial statements available for public use, the name of the next most senior parent that does so shall also be disclosed. Comprehensive disclosures of related party transactions are required and generally similar to the requirements of INA GAAP.
Comprehensive disclosures of related party transactions are required, especially for listed entities, and typically include: nature of transactions with related parties, an indication of the volume of the transactions (both as an amount and as a proportion), amounts or proportion of outstanding items, and pricing policies.
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(PSAK 7 BAPEPAM Regulation , No. VIII.G.7 Decree of BAPEPAM s , Chairman No. X.K.6)
Listed entities are required to disclose the name of the related party and the nature of the relationship for each related party transaction for which value of the transaction or the outstanding balance resulted from the transaction is more than Rp 1 billion. Listed entities are also required to disclose the fact that the pricing for related party transactions are or are not the same as those of arm s length transactions.
(IAS 24)
Generally, there is no such threshold criterion for the disclosure of related party transactions under IFRS.
Disclosures that related party transactions were made on terms equivalent to those that prevail in arm s length transactions are made only if such terms can be substantiated. Generally disclosures of related party transactions shall include provisions for doubtful debts related to the amount of outstanding balances and the expense recognized during the period in respect of bad or doubtful debts due from related parties. An entity shall disclose key management personnel compensation in total and for each category of benefit.
Listed entities are required to disclose the reason for providing allowances for outstanding receivables from related parties.
Generally, any transaction with key management personnel, in their position as related parties, shall be disclosed. Nevertheless, there is no specific requirement to disclose the compensation given for each category of benefit. Listed entities are required to disclose the procedure to determine the amount of the remuneration paid to the member of the board of commissioners and the board of directors and the actual amount of such remuneration. Such information shall be disclosed in the annual report filed with the BAPEPAM.
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5.6
Financial instruments: presentation and disclosure (Framework, PSAK 21, PSAK 50, PSAK 53, PSAK 55)
An instrument is a liability if the issuer could be obliged to settle in cash or another similar instrument in the future.
There is no specific requirement to classify an instrument as a liability if it will or may be settled in a variable number of an entity s own equity instruments. Preferred shares are classified as equity. There is no specific requirement to reassess whether preferred shares with liability characteristic and similar instruments should be classified as liability. Debt instruments issued with warrants are classified as liability. non-detachable
Preference shares and similar instruments must be evaluated to determine whether they have the characteristics of a liability. Such characteristics will lead to classification of these instruments as debt. Compound instruments that have both liability and equity characteristics are split into these components. Instruments may have to be classified as liabilities even if they are issued in the form of shares.
Debt instruments issued with detachable warrants are allocated at their relative fair values at the time of issuance. Fair value of warrant is presented as additional paid in capital and the remaining value of debt instrument is presented as liability. There is no specific requirement regarding to qualitative disclosures in respect of financial risks and management s approach. The terms and conditions of, and accounting policies applied to all financial instruments must be disclosed. There is no specific requirements on fair value disclosures for instruments that are not carried at fair value in the financial statements.
Qualitative disclosures are required in respect of financial risks and management s approach to managing these risks. Similar to INA GAAP .
The fair value of instruments not carried at fair value in the financial statements must be disclosed. In addition, disclosure is required about methods and significant assumptions used for determining fair value (see Forthcoming requirements). The level of detail of the required disclosures will vary depending on the nature and extent of financial instruments.
There is no specific guidance on the level of detail of the required disclosures of financial instruments.
Notes: On 16 December 2006, PSAK 50 (revision 2006) and PSAK 55 (revision 2006) were issued, which are effective for the annual reporting periods beginning on or after 1 January 2009, early adoption is permitted. With the issuance of these revised standards, the differences noted above were eliminated, except for the difference on the extent of disclosure of financial instruments as prescribed in IFRS 7, Financial Instruments: Disclosure (2005).
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5.7
Revenue is recognized for barter transactions unless the transaction is incidental to the entity s main revenue-generating activities or the items received are similar in nature and value. Exchanged assets are recognized based on historical cost if the exchange lacks commercial substance or the fair value cannot be measured reliably. Commercial substance is assessed by considering the extent to which future cash flows are expected to change as a result of the transaction. Donated assets may be accounted for in a manner similar to government grant, unless the transfer is, in substance, an equity contribution.
Donated assets shall be recognized at estimated fair value by directly crediting shareholders interests.
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5.8
Accompanying financial and other information (Decree of BAPEPAM s Chairman No. X.K.6)
An entity considers its particular legal or securities exchange listing requirements in assessing what information is included in addition to that required under INA GAAP . Generally, providing a financial and operational review is neither required nor encouraged. A financial and operational review is required to be provided by listed entities in their annual report filed with the BAPEPAM.
(IAS 1)
Similar to INA GAAP .
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