DISEMINASI OJK

Jakarta, 27 Agustus 2019

oleh: Budi Susanto
Ketua Tim Implementasi SAK IAI
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PSAK 71 Financial Instruments – Overview
PSAK 71-Classification and Measurement
Classification: Financial assets
Measurement categories
▪ The measurement categories are similar:
PSAK 71 PSAK 55
FVTPL* FVTPL
Amortised cost Loans and receivables/HTM*
FVOCI* AFS*

▪ Significant changes in criteria for classifying assets.

Reclassification of financial assets is subject to strict conditions and expected to be very

infrequent.

* FVTPL – fair value through profit or loss, FVOCI – fair value through other comprehensive income,
* HTM – held to maturity, AFS – available for sale
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Classification: Financial Liabilities
Measurement categories

▪ Requirements from PSAK 55 largely retained.

− Classified as measured at amortised cost or at FVTPL.
▪ Presentation in OCI* of gain or loss on a financial liability designated at FVTPL
attributable to changes in own credit risk, unless it would create or enlarge an
accounting mismatch.

Reclassification of financial liability – not permitted.

* OCI – other comprehensive income
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Classification of financial assets: Debt instruments
Debt instrument

Are the asset’s contractual cash Yes Is the business model’s Yes
flows solely payments of principal objective to hold to collect
and interest (SPPI)? contractual cash flows?

No No

Is the business model’s

No
objective achieved both by
collecting contractual cash
flows and by selling?

Yes

FVTPL FVOCI* Amortised cost *

* Subject to FVTPL designation option - if it reduces accounting mismatch

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The SPPI Criterion
Do the cash flows consist only of principal and interest?

▪ Consistent with a basic lending arrangement.

Definition
Principal Fair value of asset on initial recognition.
Consideration for: Time value of money, credit risk, other basic lending
Interest risks (such as liquidity risk), other associated costs (such as
administrative costs) and a profit margin.
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Business Models Overview
Business models Key features Measured at

Held-to-collect contractual ▪ Objective: Hold assets to collect contractual cash flows. Amortised cost*
cash flows ▪ Sales are incidental to the objective.
▪ Typically lowest sales (in frequency and volume).

Held both to collect ▪ Both collecting contractual cash flows and sales are FVOCI*
contractual cash flows and for integral to achieving the objective of the business model.
sale ▪ Typically more sales (in frequency and volume) than
held-to-collect business model.

Others ▪ Objective: Neither held-to-collect nor held to collect and FVTPL**

for sale.
* Subject to meeting the SPPI criterion and not applying the fair value option.
** SPPI criterion is irrelevant – assets in all such business models are measured at FVTPL.
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Classification of Trade Receivables
Classification criteria Likely to meet?

SPPI

Held-to-collect business
model

▪ Trade receivables are likely to meet both criteria:

‒ Cash flows are generally fixed.
‒ Generally held to collect cash flows.

Watch out for the impact of securitisation and other transactions, including factoring, and
for more complex contractual terms.

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Classification of Investments in Equity Instruments
Investment in equity instruments

Yes
Held for trading?

No

No
OCI option?

Yes

No recycling FVOCI* FVTPL

to P&L

* This election is irrevocable and can be made on an instrument-by-instrument (e.g. Individual share) basis on initial recognition.

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Embedded derivatives
Is host contract a financial asset in
the scope of PSAK 71?

Yes No

Follow the requirements on

Do not separate separation, as in PSAK
55

Consider impact on SPPI

criterion

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 Initial measurement
▪ Generally, no changes from PSAK 55.
▪ Recognise at fair value plus (minus) transaction costs# directly attributable to the acquisition
(issue).
▪ Exception: Trade receivables without significant financing component are recognised at
transaction price* defined by PSAK 72.

# Transaction costs are not included in initial measurement of financial assets and financial liabilities measured at
FVTPL.
*The amount of consideration to which an entity expects to be entitled.

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Subsequent measurement
PSAK 71 Same as PSAK 55?

Amortised cost
FVOCI debt investments
FVOCI equity instruments*
FVTPL
▪ *FVOCI equity instruments:
‒ Dividends generally recognised in profit or loss.
‒ Other gains and losses recognised in OCI and never reclassified to profit or loss.
‒ Impairment never recognised in profit or loss.
‒ Cost measurement no longer permitted.

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PSAK 71 - Impairment
Impairment – the new model
Past events
+
Information Current conditions
to include +
Forecast of future economic
conditions

▪ Generally, all financial assets carry a loss allowance.

‒ No trigger is required for recognising impairment
▪ More judgement.
▪ One model for financial instruments in the scope of PSAK 71.
General (dual measurement) Approach

▪ Under the general principle, one of two measurement bases will apply:
‒ 12-month expected credit losses (ECL); or
‒ Lifetime expected credit losses.
▪ The measurement basis depends on whether there has been a significant increase in credit risk
since initial recognition.
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Key elements of impairment model
Losses resulting from default events possible within 12 months after reporting
12-month ECL
date.

Losses resulting from all possible default events over expected life of financial
Lifetime ECL
instrument.

Significant
increase in credit Not defined in PSAK 71.
risk

Not defined in PSAK 71: Considers qualitative indicators when appropriate, is

Default consistent with the definition used for internal credit risk management and is
applied consistently. 90 days past due
rebuttable presumption
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PSAK 71 – Hedge Accounting
Key elements of differences
PSAK 71 PSAK 55
▪ Non-derivative financial instruments ▪ Non-derivative financial instruments only
Hedging
instrument measured as FVTPL can hedge any risk. used as a hedge of FX risk.
▪ Concept of ‘costs of hedging’. ▪ No concept of ‘costs of hedging’.

Hedged ▪ Derivatives can be hedged items. ▪ Derivatives cannot be hedged items.

item
▪ Allows components of non-financial items ▪ Components of non-financial items (other
(i.e. when separately identifiable and than FX risk) cannot be hedged items.
reliably measurable).
▪ Net exposures cannot be hedged items.
▪ Allows groups of items, including certain
net exposures, as hedged items.

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Swiss entity. All rights reserved.
19
Key elements of difference (continued)
PSAK 71 PSAK 55

Credit ▪ Fair value option model for managing credit ▪ No ‘fair value option model for managing
exposures risk. credit risk’.

Hedge ▪ There is an economic relationship between ▪ The hedge has been and is expected to be
accounting the hedged item and hedging instrument, highly effective.
criteria and the effect of credit risk does not
dominate the economic relationship.

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Key elements of difference (continued)
PSAK 71 PSAK 55
▪ Assessment of the economic relationship ▪ Prospective and retrospective test.
Effectiveness
between the hedged item and the hedging
assessment ▪ Numerical range of 80–125%.
instrument (qualitative and forward-
looking).
▪ Assessment of credit risk and ‘hedge ratio’
of the hedging relationship.
▪ No specific numerical thresholds.

Rebalancing and ▪ If the quantity of the hedged item or ▪ No ‘rebalancing’ concept available.
discontinuation hedging instrument changes for risk
▪ Entities can discontinue hedge
management purpose, the current hedge
accounting at any time.
relationship continues.
▪ The designation of hedge accounting
cannot be voluntarily revoked.
© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
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PSAK 71 - Disclosures
Disclosures – after adoption of PSAK 71
▪ Extensive new disclosures required, e.g.:

Explanation ▪ How the entity determines if increase in credit risk is significant.

how judgement ▪ Default definition and the reasons for selecting it.
is exercised ▪ Inputs and assumptions used for impairment.

▪ Reconciliation of loss allowance.

Quantitative ▪ Significant changes in gross carrying amounts.
disclosures ▪ Information on collateral.
▪ Modifications of financial assets.

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
23
PSAK 72 Revenue from
Contract with Customers -
Overview
 Scope
Out of scope In scope

Certain types of non-

Insurance contracts
monetary exchanges Contract with a customer

Contractual rights and Part of a contract Portfolio of contracts

obligations in the Contract 1
Lease contracts Other Contract 2
scope of PSAK
another PSAK/ISAK PSAK/ Contract 3
72 Contract 4
ISAK

PSAK 72 will supersede PSAK 23, PSAK 34, PSAK 44, ISAK 10, ISAK 21, and ISAK 27, and replace them with single standard for
revenue. © 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
25
Step 1: Identify the contract with a customer
STEP
Identify the contract with a customer
1

STEP
Identify the performance obligations
2

STEP
Determine the transaction price
3

STEP
Allocate the transaction price
4

STEP
Recognise revenue
5

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 STEP

Contract definition Contract

1

Entity Customer

i.e. enforceable rights and obligations

▪ A contract is defined “as an agreement between two or more parties that creates enforceable
rights and obligations”.
▪ Written, oral or implied by customary business practices.

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
27
 STEP

Identify the contract 1

... collection of consideration is ... rights to goods or services and

considered probable. payment terms can be identified.

A contract exists if
legally enforceable
and …

... it is approved and the parties are

... it has commercial substance. committed to their obligations.

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 STEP

Combining contracts in PSAK 72

Contracts may be combined and accounted for as a single contract …
1

... if
Entered into at or near the same time with the same customer and one or more of
the following criteria are met:

Negotiated as package Consideration in one Goods and services are a

with a single commercial contract depends on the single performance
objective. other contract. obligation.
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Step 2: Identify the performance obligations
STEP
Identify the contract with a customer
1

STEP
Identify the performance obligations
2

STEP
Determine the transaction price
3

STEP
Allocate the transaction price
4

STEP
Recognise revenue
5

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
30
 STEP
2

Performance obligation
… is an implicit or explicit promise within a
Performance
contract to transfer distinct goods or services
obligation to the customer.

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
31
 STEP

Identify distinct performance obligations 2

A good or service is distinct if meets two criteria:

Criterion 1: Criterion 2:
Capable of being distinct Distinct within context of the contract

Customer can benefit from the good or + Promise to transfer the good or service is
service on its own or together with other separately identifiable from other promises in
readily available resources. the contract.

Yes No

Not distinct – combined with other goods

Distinct performance obligation.
and services.

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
32
Step 3: Determine the transaction price
STEP
Identify the contract with a customer
1

STEP
Identify the performance obligations
2

STEP
Determine the transaction price
3

STEP
Allocate the transaction price
4

STEP
Recognise revenue
5

33
 STEP

Determine the transaction price 3

Variable consideration Consideration payable to a

customer
… reduction to the transaction price
unless it’s a payment for a distinct
Transaction good or service
price includes
Non-cash consideration fixed amount Significant financing
and … component

… measured at fair value unless it cannot

be reliably measured.
 STEP

Variable consideration 3

Variable consideration can be

Performance
Discounts Credits Incentives Many more...
bonuses

Variable consideration is estimated using most appropriate method of either:

Expected value Most likely amount

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Step 4: Allocate the transaction price
STEP
Identify the contract with a customer
1

STEP
Identify the performance obligations
2

STEP
Determine the transaction price
3

STEP
Allocate the transaction price
4

STEP
Recognise revenue
5

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Allocate transaction price to performance obligations STEP
4

Allocate based on relative

Determine stand-alone selling prices
stand-alone selling prices
Best evidence If not available
Performance obligation 1
Observable price Estimate price
Performance obligation 2

Performance obligation 3
Adjusted market Expected cost plus
assessment approach a margin approach

Residual approach

37
Step 5: Recognise revenue
STEP
Identify the contract with a customer
1

STEP
Identify the performance obligations
2

STEP
Determine the transaction price
3

STEP
Allocate the transaction price
4

STEP
Recognise revenue
5

38
 STEP
Evaluate when control transfers 5

Is the performance obligation satisfied over time? (i.e. is

one of the criteria met?)

Yes No

Identify an appropriate method to measure Recognise revenue at

progress the point in time

Apply that method to

recognise revenue

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 STEP
5

Performance obligations satisfied over time

Customer simultaneously receives and consumes Routine or recurring
1
the benefits as the entity performs. services.

Customer controls the asset as the entity creates Asset built on

2
or enhances it. customer’s site.

The entity’s performance does not create an asset

3 with an alternate use and there is a right to Asset built to order.
payment for performance to date.

40
 STEP
5

‘Over time’ criteria

Contract to build Customer can cancel Right to payment to Quarterly payments
specialised equipment with 30 days' notice cover costs incurred if arrangement
contract cancelled

Do the terms meet

the no alternate use
No alternate use Right to payment
and right to payment
criteria? ✓ 
Payment needs to approximate selling price of goods and services transferred to date
(i.e. payment amount should include a profit margin)..

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 STEP

Measuring performance over time 5

For each performance obligation an entity chooses a method that depicts its performance.

Output
Outputmethod
method Input method

▪▪ Surveys
Surveys ▪ Costs incurred
▪▪ Milestones
Milestonesreached
reached ▪ Labour hours
▪▪ Units
Unitsdelivered
delivered ▪ Machine hours

When using input method consider:

▪ Uninstalled materials.
▪ Wastage and inefficiencies.

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Performance obligations satisfied at a point in time STEP
5
Recognise revenue when customer obtains control of the promised asset.

Indicators that control has been transferred include the customer has …

A present
Physical
obligation to Legal title
possession
pay

Risks and
Accepted the
rewards of
asset
ownership

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PSAK 73 Leases – Overview
Lessees face major changes
Leases on balance sheet

Balance sheet P&L

Asset Lease expense
= ‘Right-of-use’ of underlying asset Depreciation
Liability + Interest
= Obligation to make lease payments = Front-loaded total lease
expense

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 Impact Profit/loss
Balance sheet

Depreciation Interest
Asset Liability Cash rental payments

▪ Companies with operating leases ▪ Total lease expense is

appear to be more asset-rich, but front-loaded even when cash rentals
also more heavily indebted. are constant.
7
PSAK 73 – New Definition, New
Accounting
Lease definition
The new on/off-balance sheet test for
lessees – a key judgement area

Lease
classification ON OFF
test

New standard Lease Service

Finance Operating
Old standard
lease lease
PSAK 73 will supersede PSAK 30, ISAK 8, ISAK 23, ISAK 24 and ISAK 25. 48
Lease definition – Control

The new definition increases focus

on who controls the asset and may
change which contracts are leases

Lease Not a lease ?

49
Lease definition - overview
No
Identified asset?

Yes
Lessee obtains substantially all No
of the economic benefits? Contract does
Yes not contain
No a lease
Lessee directs the use?

Yes
No
Contract is or contains a lease

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Identified assets - Substantive
substitution rights
Practical ability of lessor to substitute asset No
throughout the period of use?
Could be
Yes identified asset

Lessor benefits economically from No

substitution?

Yes

No identified asset
Directing the right to use
Who takes the ‘how and what purpose’ decisions throughout the period of use?

Predetermined

Customer Supplier
Customer Customer
operates asset or
designed Other
directs others to
asset
do so
Contract does not contain a
Contract is or contains a lease*
lease

Protective rights of the supplier

* If other criteria are met.

52
Lease definition – Exemptions
Two major optional
exemptions for lessee
make the standard easier Short term leases Leases of low
to apply (i.e. the
exemptions are not
value items
applicable for lessor)
≤ 12 months ≤ USD 5,000*
for example
* Quantitative threshold of USD 5,000 (as included in Basis for Conclusions of IFRS 16 par BC100) is
not incorporated into PSAK 73 (see Basis for Conclusion of PSAK 73 par DK15).
- There are sufficient guidance in Application Guidance (Appendix B) and Illustrative Examples of
IFRS 16 for analyzing whether items are indeed of low value.
- USD 5,000 is not intended as a bright-line test, but rather conveys what IASB had in mind at the
time of reaching decisions in 2015 about the exemption for low-value assets.
- PSAK 73 does not intend to take different view from that of IFRS 16.
53
PSAK 73 – Lessee Accounting Measurement
Measuring The Lease Liability
Present value of
Present value of expected
Lease liability
= lease rentals + payments at end
of lease

Key inputs

Lease term Lease payments Discount rate

55
Lease Term
Non-cancellable period

+
Lease term = Optional renewal periods if lessee
reasonably certain to exercise

+
Periods after optional termination date if
lessee reasonably certain not to exercise

56
Lease payments
Fixed payments (include
in-substance fixed
payments) Residual value guarantees
(expected amount
payable)
Termination penalty
Lease (if termination is
payments reasonably certain)
Variable lease payment
based on index or rate
Purchase options
(exercise price if
reasonably certain)

57
Variable lease payments
Which variable lease payments are included in the lease liability?

Payments based on an index Payments based on turnover

or rate or usage

58
© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
Discount rate

Present value
Present value of
of lease
lease
payments
payments Fair value
Fair value
Present value
Present value ofof underlying asset
underlying asset
unguaranteed residual
unguaranteed residual Initial
Initial direct
direct costs
costs
value
value

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
59
 Measuring the Right-of-Use (ROU) Asset
ROU asset

=
Costs to
Initial direct Prepaid lease dismantle or Lease
Lease liability incentives
costs payments restore
(PSAK 57)

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG
International"), a Swiss entity. All rights reserved.
60
Subsequent measurement
Lease liability ▪ Amortised cost using the effective interest method.

▪ Depreciated in accordance with PSAK 16 Property, Plant &

Equipment.
ROU asset ▪ Depreciation period is the shorter of lease term/useful life.
(cost model)
▪ Impairment testing under PSAK 48 Impairment of Assets.

ROU asset ▪ Revaluation model under PSAK 16.

(alternative models) ▪ Fair value model under PSAK 13 Investment Property.

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PSAK 73 – Lessor Accounting
Lessor accounting
Lessor accounting remains Lease classification test

similar to current
practice… Finance leases and
operating leases

but lacks consistency with Consistent accounting

new lessee accounting model for lessors and
lessees
model

63
PSAK 73 – Other topics
Investment property
Measure at cost or
A lessee applies PSAK 13
fair value
for subsequent (accounting policy choice for
measurement of a all investment property)
right-of-use asset if the
underlying asset is
investment property.

Fair value disclosures under

PSAK 13 and PSAK 68

© 2018 Siddharta Widjaja & Rekan – Registered Public Accountants, an Indonesian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved.
65
Sub-lease
Intermediate lessor: Head lessor
▪ Accounts for head lease and sublease as
two separate contracts.
▪ Classifies the sublease based on the ROU Original lessee /
asset arising from the head lease. intermediate lessor
▪ Recognises lease assets and lease
liabilities gross – unless offset criteria
met.
▪ Recognises lease income and lease Sub-lessee
expense gross – unless acting as agent.

66