STRATEGIC IMPLEMENTATION OF PSAK 71, 72 AND 73

1 AUGUST 2019
APPROACH AND ROADMAP
Our Work Approach

TRANSITION
ADJUSTMENT & KNOWLEDGE
GAP ANALYSIS TESTING, POST
DISCLOSURE SHARING &
MODELLING AND FOR FINANCIAL IMPLEMENTATION
TRANSFER
SIMULATION STATEMENT

01 02 03 04 05

Implementation
PROJECT MANAGEMENT & CHANGE MANAGEMENT

Plan Perform Communicate

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 Melaksanakan
perubahan proses
bisnis, pengendalian
Menyusun pedoman internal, sistem
pelaksanaan PSAK IT,dan PIC
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Melakukan
perhitungan transisi.
Memvalidasi rencana
Menyusun rencana implementasi,
implementasi. melakukan
Menyiapkan percobaan
Mengidentifikasi kebijakan akuntansi system/prosedur,
dampak lebih luas yang baru dan mereview output
terhadap proses pengungkapan.
Pemahaman PSAK bisnis, pengendalian Menetapkan
72, Melakukan Gap internal, sistem IT persyaratan baru
analysis, dan divisi terkait atau untuk proses bisnis,
Mengidentifikasi arus PIC pengendalian
pendapatan yang internal, sistem IT
signifikan dan dan PIC
mengevaluasi
kontrak dalam
konteks PSAK 72
 Implementasi
PSAK 73
Penerapan transisi,
Penyusunan
penyajian dan
Persiapan aplikasi pengungkapan di
teknis yang Lapkeu
dibutuhkan
Menyusun
pedoman
pelaksanaan PSAK
Proses identifikasi 73
terhadap seluruh
kontrak/transaksi
Pemahaman PSAK 73; yang dikategorikan
Melakukan Gap sewa atau
analysis mengandung
sewadan Simulasi
perhitungan PSAK 73
PSAK UPDATE
IFRS 9 (PSAK 71) the need for change…
• IAS 39 requirements were difficult to understand, apply and
interpret.
• The IASB’s objective in issuing IFRS 9 was to develop a
new Standard for the financial reporting of financial
instruments that is principle-based and less complex.
• IFRS 9 is IASB’s response to the financial crisis and
represents a fundamental reconsideration of the
accounting for financial instruments

PSAK 71
INSTRUMEN
KEUANGAN

IFRS 9 (PSAK 71)

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 Changes from IAS 39 (PSAK 55) to IFRS 9 (PSAK 71)

Classification and Measurement

IAS 39 IFRS 9
Impairment
(PSAK 55) (Incurred Loss to Expected Loss) (PSAK 71)

Hedge Accounting

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 Changes from IAS 39 (PSAK 55) to IFRS 9 (PSAK 71)
Theme IAS 39 (PSAK 55) IFRS 9 (PSAK 71) Potential Impact
Classification • Classification for Financial • Classification of Financial Assets: • Changes in categorization of
and Assets : Held to Maturity, Amortized Cost, Fair Value Through financial instruments
Measurement Loans and Receivables, Other Comprehensive income
FVTPL, and Available for Sale (FVOCI) and FVTPL.
• All equity available for sale is • Fair value through comprehensive
measured at fair value in income, fair value through profit and
comprehensive income. loss if it is Held for Trading.

Reclassification • Reclassification through • Changes in business model. • Reclassification if a business model

profit and loss after initial changes
recognition is not valid.
Impairment • The Incurred Loss method • The Expected Loss Method that is • Increase provisions
that is backward looking forward looking • Decrease in entity profits

Hedge • The hedging relationship is
Accounting considered effective if it
meets the requirements for
effectiveness test of 80-125%
• Eliminate the requirements of
effectiveness test and introduce
more general requirements based on
Management’s consideration.
• Changes of hedging model will
require deep judgment and
improvement of processes and
controls
• Irrelevant if no hedging transaction

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Classification and Measurement Decision Tree of Financial
Assets and Derivatives
Debt instruments Equity instruments Derivatives

1 No
Business model test Yes
Trading intention?
Held to collect Held to collect
contractual contractual No
cashflows cashflows and sell
Yes No
Fair value through non
2 No recyclable OCI?
Solely Payment of
Principal and Interests test

Fair value option? Yes

→ Only in case of accounting
mismatch
No No

Fair value Fair value Fair value through P&L

Amortised cost through through non (default classification)
recyclable OCI recyclable OCI

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IFRS 15 (PSAK 72) the need for change…

• Old guidance contained in multiple standards and

interpretations while in the new standard, all guidance
contained in a single standard.
• Old standard is risk and rewards based model while the
new standard is control based model.
• In old standard revenue is measured at fair value of the
consideration received while the new standard
consideration is measured as the amount the entity expects
to be entitled to (Transaction Price).

PSAK 72
PENDAPATAN DARI
KONTRAK
PELANGGAN

IFRS 15 (PSAK 72)

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 The 5 Steps Model
Step 1 Step 2
Step 3 Step 4
Identify the Step 5
Identify the contract Determine the Allocate the
with a customer performance Recognise revenue
transaction price transaction price
obligations

Enforceable? Distinct Goods and Based on transfer of

Variable consideration Observable prices?
services control

Modifications Series Goods and Non-cash

Estimated pricing? Overtime?
services consideration

Combinations Bundle Goods and Significant financing

Variable consideration At a point in time
services components

Payments to customers

Principal vs Sale and

Non-refundable
agent Contract costs Rights of return Warranties repurchase Licensing of IP
upfront fees
considerations arrangements
Estimate
Controls of Incremental reduction in Separate The
Is there a
good or costs revenue performance substance –
separate Rights of use
service prior capitalised obligation vs finance,
Asset: goods performance vs access
to and then IAS 37 lease or
expected to obligation?
transaction amortised provision sale?
be returned

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IFRS 16 (PSAK 73) the need for change…
Leases are an important and flexible source of financing —
listed companies using IFRS Standards or US GAAP
estimated to have US$3.3trillion lease commitments.

“Over 85% of lease commitments do not appear on balance

sheet”

Therefore, it is difficult for investors and others to:

▪ Get accurate picture of entity’s lease assets and liabilities
▪ Compare companies that lease assets with those that buy
▪ Estimate the amount of off balance sheet obligations: often
overestimated
PSAK 73
SEWA

IFRS 16 (PSAK 73)

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 Changes from IAS17 (PSAK 30) to IFRS 16 (PSAK 73)
Lessee - Single Model of Lease
Lease Type Lessor
IAS 17 / PSAK 30 IFRS 16 / PSAK 73

• On-balance sheet (asset & liabilities) – • On-balance sheet (asset &

specific asset liabilities) – Right of Use
Financial Lease No changes
• Depreciation • Depreciation
• Interest expense • Interest expense

• Off balance sheet Exception : Short term

Operating Lease No Changes
• Rent expense (< 12 months), low value

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Overview - Lessee Accounting

Initial Recognition and Measurement of Right of Use of Asset (ROU) and lease liability
Measurement at present value of lease payments

ROU Depreciate ROU asset based on IAS 16, or use alternative

Asset measurement basis under IAS 16 and IAS 40
Subsequent
Measurement
Accrete liability based on the interest method, using a
Liability discount rate determined at lease commencement.
Reduce the liability by payments made.

Generally front loaded expense for an individual lease.

Profit or loss
Interest and depreciation are separated.

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Effective Date and Transition

Internationally, the effective date of IFRS 9 - Financial

Instruments and IFRS 15 - Revenue from Contracts
with Customers is for annual period starting on or
after 1 January 2018.

In Indonesia, DSAK-IAI has issued the PSAK 71

which is equivalent to IFRS 9, PSAK 72 which is
equivalent to IFRS 15 and PSAK 73 which is
equivalent to IFRS 16. These standards are planned
to be effective for annual period starting on or after 1
January 2020.

Retrospective application is required except:

• When transition application requires undue cost or
effort, in which operational simplifications are
provided.
• When there is no requirement to restate
comparatives.

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WHAT IS THE POTENTIAL IMPACT
OF THE NEW IMPLEMENTATION OF
PSAK 71, 72 and 73?
 Potential Impact of PSAK 71, 72 and 73
Business processes and Data and Accounting and financial
Tax implication
internal control technology reporting

• Current business • Modify or • Business model test and • Change in tax accounting
processes and establish new contractual cash flows test method, if occurred should
internal controls, may database to may lead change in get approval from tax office
be modified as record historical classification and measurement if the changes for financial
consequences of collection of financial assets and liabilities reporting purposes.
change in business experiences • Receivable impairments may • Changes in temporary
model • Technology require adjustment as a result of differences will result in a
• Modification or platform may expected loss impairment model change to deferred tax
development new require • Revenue recognition may assets and liabilities.
business process may modification as change due to application of 5- • Valuation allowances may
lead to change in impact of step model require adjustments due to:
policy revenue stream • Lease classification may • Changes in the timing of
or impairment change, e.g. as result of the temporary difference
assessment of storage services reversals.
contract • Changes in timing of
• Change in equity investment future taxable income.
since the standard permits to
choose irrevocable choices
upon initial recognition to
classify the instrument at FV
through OCI or FV through
profit and loss.
• Disclosure requirements
increase
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 IFRS 9 Stage 2
IFRS 9 Stage 1 IFRS 9 Stage 3
“under-
“performing” “impaired”
performing”
Loss Provision

IFRS 9

Change from 12-months to

lifetime expected credit IAS
loss
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Significant increase in credit Default
risk

Increase in credit risk since initial

recognition
PSAK 71: Potential Issues

1 Financial Asset – SPPI test

2 Impairment Individual and Collective; Simplified Approach

Segmentation – Credit Risk Characteristic ; Number of

3 population

For long term period → Stage Transfer Criteria: low risk,

4 significant increase in credit risk, default definition

5 Probability of Default, forward looking model

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SIMPLIFIED APPROACH

• Using management judgement to determine provision rates

< 30 days 30 - 180 > 180 - 360 > 360

5% 25% 50% 100%
• Issues:
– How to evaluate the management judgement is accurate and correlated
with historical data
– Is it acceptable under the standard?

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PSAK 72: Potential Issues

1 Bundling services

2 Variable Pricing

3 Significant Financing Component

financing component
SI

4 One time – Over time

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ONE POINT OR OVER TIME REVENUE RECOGNITION

• An entity shall recognise revenue when (or as) the entity satisfies a
performance obligation by transferring a promised good or service (that is, an
asset) to a customer. An asset is transferred when (or as) the customer
obtains control of that asset.
• Over time recognition: (Any of these)
– Customer receives and consumes benefits over time (services
mostly)
– The entity’s performance creates or enhances an asset that the
customer controls
– Entity’s performance does not create an asset with an alternative use
to the entity and the entity can enforce payment equalling at least
performance completed to date (include profit – not costs only)

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PSAK 73: Potential Issues

1 Lease Contract – contain non lease

2 Low value asset definition

3 Short term period with an option to extend

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Key Success Factor
 Considerations Strategy

• Time does matter • Determine priority

• Size and variety of • Collaboration
business • Process
acceleration

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 Process Acceleration
Accelerating Process for Gap Analysis
• Perform high level Gap Analysis
• Only based on sample according to type of contracts
Accelerating Availability of Data and Database
• Mapping availability data and database
Step by Step Socialization
• Socialisation to business process on continual basis
Industry Association

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Thank You

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