Accounting in Indonesia

Overview by

Accounting System

Accounting Standards
Accounting standards correspond to a brief version of the "Inventory of Generally Accepted Accounting Principles for Business Enterprises" drafted in 1964 by Paul Grady. Financial accounting standards (PSAKs) ou GAAP.
Accounting Regulation Bodies
Bapepam, Agency for the control of capital markets and financial institutions
Bank Indonesia, Indonesian Central Bank
DPAJP, Ministry of Finance, Directorate for the supervision of accountants and chartered accountants
BSN, National Standardization Body
Accounting Law
Law on capital markets n°8 (1995), Law on limited liability companies n°1 (1995) (PT Law), Law on company registration n°3 (1982), Regulation n°64 (1999) concerning company financial statements, Banking Law n°7 (1992), Law on the Central Bank n°23 (1999)
Difference Between National and International Standards (IAS/IFRS)
Since 1994, the Indonesian Institute of Chartered Accountants (IAA) has aimed to harmonize Indonesian standards (PSAK) with international standards IFRS/IAS. The Accountants Association has developed 2 types of standards: one for accounting and one for audit, with a view to harmonization with international standards. 
Accounting News
Indonesia accounting news
The Indonesian accounting society

Accounting Practices

Tax Year
The fiscal year begins on January 1 and ends on December 31 of the same year.
Accounting Reports
The balance sheet is presented into accounts with liabilities composed of constant capital and debts. The profit and loss account gives priority to the repository of the global production and lets the choice of the cost classification either by nature or by function.
Publication Requirements
Financial statements must contain at least : a variation sheet of constant capital excluding the reserve account and balance carried forward, a cash flow sheet and the annexes.
The statements of the activity during the financial year include the balance sheet, the assets and liabilities account, the intermediate balance,  the statement of source and application of funds and an additional information statement. They are indissociable from each other. Accounts should be published annually.

Accountancy Profession

The chartered accountant profession in Indonesia is represented only by 400 members. They have no accurate accounting model but are inspired by the American and Dutch model.
Professional Accountancy Bodies
IAI, The Indonesian institute of accountants
MAPPI, Indonesian chartered accountants' society
The Indonesian accounting society
Member of the International Federation of Accountants (IFAC)
Member of Other Federation of Accountants
The UGM economics faculty is a member of the Asian Academic Accounting Association (AAAA).
Audit Bodies
The "Indonesian Institute of Accountants" represents the profession of accountant. The "Department of Finance" has the authority to issue recommendations and establish obligations for accounting.

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