PSAK 72 (REVENUE FROM CONTRACTS WITH CUSTOMERS)

PSAK 72 is the adoption of IFRS 15 which has been in force in Europe since January 2018. This
PSAK has been issued since 2017. However, the implementation itself will only be required in
2020 and wil replace:
A. PSAK 34 concerning the construction contracts
B. PSAK 23 concerning the revenue
C. ISAK 10 concerning the Customer Loyalty Program
D. ISAK 21 concerning the Real Estate Construction Agreement, and
E. ISAK 27 concerning Transfer of Assets from Customers.
F. PSAK 44 concerning Accounting for real estate development activities
In essence, PSAK 72 changed the way of recognition of contract revenue that was rigid (rule
based) to principle based. Recognition of contract revenue, for example, is now not based on
the amount of down payment received.
Based on this new standard, revenue recognition can be done in stages over the life of the
contract (over the time) or at a certain point (at a point of time). However, the recognition of
incremental income cannot be applied to just any contract. There are conditions related to
the consumption of benefits by the customer, the increase in the value of assets on the
customer side, as well as the contract payment phase agreement. If a contract does not meet
these conditions, the contract revenue can only be recognized when an asset is delivered (at
a point of time).

The differences between PSAK 72 and the old regulation:

THE OLD REGULATION THE NEW REGULATION (PSAK 72)

PSAK 23: PSAK 72:
RECOGNIZE REVENUE RECOGNIZE REVENUE

How to recognize revenue: Revenue is recognized by 5 steps:

a. Revenue must be measured by the
fair value of the consideration
received or received
b. The amount of revenue that arises
from a transaction is usually
determined by agreement between
the company and the buyer or user
of the asset.
The amount of revenue = fair value
of the consideration received –
discount amount
a. Identify contract with customers
b. Identifying obligations
implementation which are
contained in contract
c. Determine the price of the
transaction
d. Allocates transaction prices to
contractual obligations
e. Recognize income when (for as long
as) the entity settles the obligation
implementation
PSAK 23: PSAK 72:
TIME OF RECOGNITION: TIME OF RECOGNITION:

When transferring risk from vendor to When customer obtains control of asset
customer

PSAK 23: PSAK 72:

TRANSACTION PRICE TRANSACTION PRICE

Cost based on contract Cost plus estimated cost (return, discount,

etc) using following method:
1. market assessment
2. cost plus margin
3. residual approach (management
judgment)

PSAK 23: PSAK 72:

CONTRACT IDENTIFICATION TYPE: CONTRACT IDENTIFICATION TYPE:

Based on written contract 1. distinct

2. combination

PSAK 23: PSAK 72:

RECOGNIZE FOR UNCOMPLETED RECOGNIZE FOR UNCOMPLETED
TRANSACTION: TRANSACTION:

as "advance sales / received" as "contract liability"

PSAK 23: PSAK 72:

ADOPTION: ADOPTION:

Maximum until December 31, 2018 1. Effective January 1, 2020, cumulative

effect to retained earning
2. Early adoption was permitted and effect
to make restatement

PSAK 23: PSAK 72:

EFFECT TO TAXATION: EFFECT TO TAXATION:

no correction fiscal correction for "estimated cost"

PSAK 23 & PSAK 34: PSAK 72:

DISCLOSURE: DISCLOSURE

Entity discloses qualitative and quantitative

The entity must disclose: information about:
 1. Accounting Policies used
2. The sum of each category of
revenue recognized in the period
3. The amount of revenue that comes
from service income
4. Revenue that is deferred
5. The method used to determine
revenue from recognized contracts
and the stage contract settlement
(for construction contract)
1. Contract with customers
2. Significant considerations and
changes in considerations
3. Assets recognized from costs to
obtain or fulfill contract with the
customer

PSAK 73 (SEWA)
PSAK 73 establishes the principles of recognizing, measuring, presenting and
disclosing leases by introducing a single accounting model specifically for lessees. Tenants are
required to recognize right-of-use assets and lease liabilities. There are 2 optional exceptions
to the recognition of leased assets and liabilities, namely for: (i) short-term leases and (ii)
leases for low-value underlying assets.
PSAK 73 substantially continue the lease accounting requirements in PSAK 30: Leases
for lessors. Thus, the lessee classifies the lease as an operating lease or a finance lease and
records the two types of leases differently. However, the lessee is required to provide
additional disclosures about the tenant's risk exposure specifically about residual value risk.
PSAK 73 will replace:
A. PSAK 30: Lease;
B. ISAK 8: Determination whether an agreement contains a lease;
C. ISAK 23: Operating Leases - Incentives;
D. ISAK 24: Evaluation of Substance of Transactions Involving a Legal Form of Lease; and
E. ISAK 25: Land Rights
PSAK 73 is proposed to be effective as of 1 January 2020 with the option of applying
early is permitted for entities that have also applied PSAK 72.

The Old Regulation The New Regulation (PSAK 73)

PSAK 30: PSAK 73:
LEASE CLASSIFICATION LEASE CLASSIFICATION

1. Finance Lease: the lease transfers
substantially all the risks and
rewards of ownership
2. Operating lease: a lease does not
transfer substantially all the risks and
Almost all leases are treated as Finance
leases (On Balance Sheet), except with the
following criteria classified as operating
leases:
1. Short term lease less than 12 month
 benefits associated with ownership 2. Lease for wich the underlying asset is
of assets of low value (issued are explained in
paragraphs PP03 - PP08)

PSAK 30: PSAK 73:

ACCOUNT LEASE ACCOUNT LEASE

1. Operating Lease : Rent Expense (Off Right of Use Asset

Balance Sheet) (On balance Sheet)
2. Finance Lease : Asset Lease

PSAK 30: PSAK 73:

LEASE TERM LEASE TERM

Based on Contract 1. non-cancellable period of the lease

when a lease agreement is agreed for 2. Optional extension period
renting assets plus other requirements 3. Periods covered by option to terminate
the lessee has the option to continue the lease, if lessee is reasonably certain not to
lease, with or without further payment exercise the option --> market & asset
specific

PSAK 30: PSAK 73:

ADOPTION ADOPTION

Maximum until December 31, 2018 Effective January 1, 2020, early adoption
was permitted

PSAK 30: PSAK 73:

EFFECT TO TAXATION EFFECT TO TAXATION

Operating Lease : Rent expense become Fiscal correction for :

deductible expense and tax art 23 object 1. Following tax effect based on PSAK 30
2. Interest of present value
Finance Lease : Fiscal correction for
1. Depreciation --> positive correction The corrections cause a deffered tax
2. Installment --> negative correction
3. Interest expense --> positive correction

The corrections cause a deffered tax

PSAK 30: PSAK 73:
IMPACT ON FINANCIAL STATEMENTS: IMPACT ON FINANCIAL STATEMENTS:

Does not appear on financial statement
Financial statements present the actual
financial condition of the company, such as
affecting the debt ratio, the ratio of return
on assets, and more because it appears on
the balance sheet.