The long-anticipated new Indonesian Financial Accounting Standards on financial instruments and revenue have just been finalized and issued. PSAK 71 Financial Instruments, PSAK 72 Revenue from Contracts with Customers and Amendments to PSAK 62 Applying PSAK 71 Financial Instruments with PSAK 62 Insurance Contracts were issued at the end of July 2017. Content wise, as compared to the exposure drafts, the only differences are on the effective dates, which have been pushed back to 1 January 2020, resulting in a 2-year gap with the equivalent IFRS Standards. Nonetheless, the option to early adopt remains, primarily for the benefits of entities which have financial reporting requirements under IFRS.
This publication briefly highlights key requirements introduced by those new/amended standards. As the new requirements could have major impacts across an organization, entities need to start planning for the transition, including managing changes to systems and processes.
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