PROGRAM

RECOGNITION OF PRIOR LEARNING

ASSOCIATE CERTIFIED PUBLIC ACCOUNTANT (ACPA)

Materi :

AKUNTANSI DAN PELAPORAN KEUANGAN

(APK)
Oleh:
Bapak Steven Tanggara, S.E., Ak., CPA
(Dewan Pengurus)

Selasa, 7 Juli 2020

(melalui Daring via Zoom)
Basic Assumptions and Objective of Financial Statements:

Underlying
Objective
assumptions

Provide information on
financial position, performance
Going concern
and changes in equity for the
users

2
The Conceptual Framework for Financial Reporting
Qualitative characteristics
Fundamental characteristics Enhancing characteristics
 Relevance  Comparability
 Faithful representation  Verifiability
 Timeliness
 Understandability

The underlying assumption when preparing financial statements is that an entity is a going concern and will continue in operation for the
foreseeable future.

One of the key components of the Conceptual Framework is the definition of the five main elements of financial statements.
In the statement of financial position, three elements can be found:
o "An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to
flow to the entity
o A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow
from the entity of resources embodying economic benefits
o Equity is the residual interest in the assets of the entity after deducting all its liabilities".

(Conceptual Framework paragraph 4.4)

3
Financial Statement Preparation

4
 PSAK 01, ‘Financial Statements Presentation’
A Complete Set of Financial Statements

Statement of
Statement of cash
changes in equity
flows

Statement of profit or loss

and other comprehensive
income
Financial
statements
Notes to the financial
statements

Statement of financial position

(balance sheet) - period end

5
Elements of Statement of Financial Position

(a) cash and cash equivalents;

(b) short-term & long-term investments;

(c) receivables;

(d) inventories;

(e) fixed assets and other assets;

(f) short-term & long-term liabilities;

(g) equity

6
Current vs Non-current

• Expected to be realised, sold or consumed within one year

• Held primarily for trading purposes
Current asset:
• Expected to be realised within 12 months after balance sheet date
• Unrestricted cash or cash equivalent

• Expected to be settled within one year

• Held primarily for trading purposes
Current liability: • Expected to be settled within 12 months after balance sheet date
• No unconditional right to defer settlement for at least 12 months
after balance sheet date

7
 Quiz!
Quiz!
Current vs Non-Current Assets

Inventory Accounts
Cash Long-term
receivable
investment
Fixed assets Short-term Intangible
investment assets

Current assets Non-current assets

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Assets Measurement
Cash
Nominal value
Accounts receivable

Depreciated, except
Fixed assets land and CIP

Short-term investment Acquisition cost

Long-term investment
Including cost to acquire legal
ownership of the investment

 Acquisition cost if acquired by purchase

Inventory  Standard cost, if self-produced
 Fair value, if obtained by other means

9
Non-Current Liabilities
A reporting continues to classify debt as long-term, although the obligation is due and to be completed
within 12 (twelve) months after the reporting date if:

1. the original term is for a period of more than 12 (twelve) months

2. the entity intends to refinance the liability on a long-term basis

3. this intention is supported by the existence of a refinancing agreement, or the rescheduling of

the payment, which was completed before the financial reports were approved.

10
Elements Statement of Profit of Loss
and Other Comprehensive Income

(a) Revenue;

(b) Expenses;

(c) Non-operating activities;

(d) Other comprehensive income;

11
Elements Statement of Changes in Equity

(a) Opening balance;

(b) Profit/ loss

(c) Other comprehensive income

(d) Closing balance

12
Presentation of Cash Flows

Operating activities

• Cash received or used for operational activities

Investing activities

• Cash received or used for the acquisition and disposal of fixed assets
and other investments not included in cash equivalents.

Financing activities

• Cash received or used related to acquisition, issuance, or repayment

of long-term loan.

13
 Quiz!
Quiz!

Cash Disbursed / Used

In current year 20X1, Entity X settled their loan to Entity Z with principal amount Rp 5,000. How
would this transaction reflected in Statement of Cash Flows?

a. Operating activities
b. Financing activities
c. Investing activities
d. Transitory activities
e. None of the above

Answer:
Answer:
Entity X will present the repayment of loan to Entity Z principal amount
Rp 5,000 in financing activities.
14
Elements of Notes to Financial Statements

1. General information about the reporting entity

2. The basis of preparation of the financial statements

3. Significant accounting policies

4. Details, explanation and analysis of each item presented in the face of financial statements

5. Other information necessary for fair presentation (i.e. contingent liabilities and commitments)

15
Other Disclosure

Other required disclosures by the Standard includes important events during the
reporting year, such as:
1. Changes in key management during the year;
2. Errors of the previous management estimates corrected by the new management;
3. Merger or division of the entity during the current year; and

16
Related Party Disclosures
(PSAK 7)

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Scope of PSAK 7
• Parties are related if one party can control or exercise significant influence over the other
• PSAK 7 covers those parties which are related and details a number of exclusions
• Disclosure is required for:

Upwards and
downwards Details of the
control transactions

relationships

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Determining Related Parties
▪ Parents
▪ Subsidiaries
▪ Fellow subsidiaries
Control
▪ Joint ventures
▪ Other entities controlled by owners or key
management
Determining
Related
Parties

Significant influence

Key management personnel

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Examples of Related Party Transactions
Sales and Loans,
purchases of commitments Bank loans Share
good and and and capital
services contingencies collateral transactions

Balances arising Transactions

as a result at the with directors
Balance Sheet
date

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Disclosures
Nature of the relationships

Types of transaction

Volume and value of the

transaction

Pricing policies

Balances at year end

21
Investment Property

(PSAK 13)

22
Investment Property
Definition

Investment property is property held to earn

rentals or capital gain, rather than being owner
occupied or held for sale in the ordinary course
of business.

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The Definition Includes and Excludes the Following:
Includes
• Land held for long term capital
appreciation
• Land held for an undetermined use
• A building leased out under one or more
operating leases
• A vacant building that is held to be leased
out under operating leases
• Property that is being developed for use as
investment property
Excludes
• Property intended to be sold in the
ordinary course of business
• Owner-occupied property
• Property held for future owner-
occupation
• Property occupied by employees
• Owner-occupied property awaiting
disposal
• Property leased to another entity under
a finance lease
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Example:
PT KOPI owned a 5 storey property. Each storey is a self-contained office space. PT KOPI decided to use 1
storey for its sales and marketing function, and renting the remaining 4 to other companies under
operating leases.

PT KOPI occupies 1/5 of the property and rent out 4/5 of the property. In this case PSAK 13 requires split-
accounting if each portion could be sold or leased out separately.

Therefore:
•1/5 of the property is accounted for as fixed assets in accordance with PSAK 16
•4/5 of the property is accounted for as investment property in accordance with PSAK 13.

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Example:
Investment property shall be recognised as an asset when, and only when:

1
it is probable that the future economic benefits
01 Text to go here go here go here go
here go herethat are
go here associated
go here with the investment property
will flow to the entity; and

Text to go here go here go

here go here go here go here 02
go here

03
the cost of the investment property can
Text tobe measured
go here go here go reliably.
here go here go here go here
go here
2
Text to go here to go here to go here to go here to go here to go here to go here

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Measurement
PSAK 13 allows a choice of applying measurement models:

01 Cost model
Historical cost - accumulated depreciation -
accumulated impairment losses (similar to PSAK 16)
Options

02 Fair value model

Fair value at each reporting date with gains/losses
in profit or loss.

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Measurement
Transfer to or from investment property arise where there is a change in use.
In order for there to be a change in uses:

1. A property must meet or cease to meet the definition of investment property

2. There must be evidence of a change in use. !

Change in management
intention to use the property is
not consider as an evidence of
change in use.

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Inventory
(PSAK 14)

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Scope
Work in
progress
arising under
construction
contracts

Applies to all
inventories,
except
Biological asset
related to agricultural
Financial
activity and produce
instruments
at the point
of harvest

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Definitions

held for sale in the

ordinary course of
business

Inventories are assets ..

in the form of
materials or supplies
in the process of to be consumed in the
production for such sale production process or
in the rendering of
services

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Inventories
Work in progress
Raw materials and consumable
supplies awaiting use in
production process

Finished goods
Property purchased awaiting sale
for the specific
purpose of resale
in the process of
production for such sale
Spare parts and servicing Goods purchased
equipment that do not meet the and held for resale
definition of property, plant and
equipment
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Measurements
Closing inventory is measured on a line-by-line basis at the lower of:

Estimated selling price in the ordinary

course of business less estimated costs
of completion and sale

Net
realisable
value
Cost

Includes all costs of purchasing

inventory and bringing it to its present
location and condition

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Cost of Inventories

Cost of Cost of Other cost

purchase conversion incurred

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Cost of Inventories
Purchase price

Cost of +
purchase
Import duties

+
Trade discounts,
Other taxes - rebates and similar
items
+

Transport & handling

cost

Other directly
attributable cost 35
Cost of Inventories

Cost of Direct labor

conversion

Fixed production
overheads
Costs directly (depreciation,
related to the units maintenance of
of production factory buildings
and equipment)

Variable production
overheads
(indirect materials,
indirect labors)
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Cost to be Excluded from Cost of Inventories
Abnormal amounts of wasted Storage costs, unless those costs are
materials, labour or other necessary in the production process
production costs prior to a further production stage

Administrative overheads that do

Costs should be excluded from cost not contribute to bringing
of inventories and recognised as inventories to their present location
expenses as incurred and condition and selling costs
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Net Realisable Value

Selling price 400

The estimated selling price
in the ordinary course of Trade discount (100)
business less the estimated Costs to complete (50)
costs of completion and
Marketing, selling and
estimated costs necessary to distribution costs (10)
make the sale
NRV 240

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Derecognition of Inventory

01
An entity should also de-recognise inventory
when it has no future economic value (for
example, obsolete inventory).

Although the inventory is not de-recognised,

02
write-downs to net realisable value result in
the amount of the inventory that has been
written down being recognised as an expense
in the period in which the write-down occurs.

If and when a write-down is reversed, the

03
reversal should be recognised in the income
statement in the period in which the reversal
occurs, and the amount of inventories is
increased accordingly.
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Property, Plant and Equipment

(PSAK 16)

40
Definitions

PSAK 16 defines property plant and equipment (PPE) as:

Are held for use in the production

or supply or goods or services, or Are expected to be used
for rental to others, or for
administrative purposes during more than one period

1 2

41
Recognition

It is probable that future economic benefits

associated with the item will flow to the entity

The item's cost can be measured reliably

42
Measurement
PPE is initially recognised at its COST, which includes all those costs of bringing it to its present condition and location
including:

Directly
Purchase price Estimated cost
attributable Borrowing
(including of dismantling
costs to bring to cost on
duties and non after use
location qualifying
refundable if an obligation
and condition assets
taxes) exists to do so
for use

Capitalisation of subsequent expenditure should occur when it is probable

that the asset will produce future benefits in excess of the originally assessed
standard of performance.

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Measurement
After initial measurement, an entity may choose which measurement model to apply to PPE:

Cost Model

Historical cost Fair value

-/- Accumulated depreciation -/- subsequent depreciation
-/- Accumulated impairment losses -/- subsequent impairment losses

Revaluation Model

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Depreciation

Allocated on a systematic basis over its useful life

Recognised as long as the asset’s residual value does not exceed its
carrying amount

Begins when it is available for use

The depreciation method should reflect the expected pattern of the

consumption of the economic benefits of an asset by an entity

The depreciable amount of an asset is:

cost less residual value expected at the end of the asset's useful life
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Impairment of Assets
(PSAK 48)

46
Impairment Overview

Assets with finite lives

Review at each reporting date whether

there are indicators of impairment

Test for impairment when indicators are

detected

Goodwill, intangible assets with

indefinite lives and intangible assets not
yet in use
Test annually for impairment and when
indicators arise
47
Impairment Overview
Company assesses impairment when events or circumstances indicate the asset carrying
amount may not be recoverable..

Trigger events:

Decrease in market prices

Higher than anticipated development costs (normally revealed through increasing DD&A rate)

Decrease in reserve estimates (“downward revisions”)

Environmental issues

Adverse political, legislative, or regulatory changes

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Revenue

(PSAK 23)

49
Measurement of Revenue:

01
Revenue should be measured at the fair value of the
consideration received or receivable

[PSAK 23 par 09]

02
If the inflow of cash or cash equivalents is deferred,
discounting is appropriate.
Example: if the seller is providing interest-free credit to
the buyer or is charging a below-market rate of
interest. Interest must be imputed based on market
rates.

[PSAK 23 par 11]

50
Recognition for Sales of Goods

Transfer risk and The amount of

rewards from revenue can be
seller to buyer measured reliably

Sales of
goods

costs incurred or to be incurred

in respect of the transaction can In flow economic benefits to seller
be measured reliably

51
Recognition for Rendering of Services

Transfer risk and Stage of completion at

rewards from balance sheet date can be
seller to buyer measured reliably

Rendering
of services

costs incurred or to be incurred

in respect of the transaction can In flow economic benefits to seller
be measured reliably

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Revenue Recognition Model
PSAK 23 /34 PSAK 72

Separate models for: Single model for performance obligations:

• Construction contracts • Satisfied over time
• Goods • Satisfied at a point in time
• Services

Focus on risk and rewards Focus on control

Limited guidance on: More guidance:

• Multiple element arrangements Separating elements, allocating the transaction price,
• Variable consideration variable consideration, licences, options, repurchase
• Licences arrangements
and so on….

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Revenue Recognition Model
Core principle

An entity recognises revenue to depict the transfer of promised goods or services

to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services.

Revenue is recognised in accordance with the core

principle by applying a 5 step model.

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Revenue Recognition Model (The Well-Known 5 Step Model)

Step 1: Identify the Step 2: Identify the separate

contract(s) with the performance obligations in
customer the contract(s)

Step 4: Allocate the Step 3: Determine the

transaction price transaction price

Step 5: Recognise revenue when (or as) a performance

obligation is satisfied

55
Accounting Policies, Changes in
Accounting Estimates and Errors

(PSAK 25)

56
Definitions
Accounting policies are the specific principles, bases,
conventions, rules and practices applied by an entity in
preparing and presenting financial statements.
Material Omissions or misstatements of items are material if they
could, individually or collectively, influence the economic
decisions that users make on the basis of the financial statements.
Materiality depends on the size and nature of the omission or
misstatement judged in the surrounding circumstances. The size
or nature of the item, or a combination of both, could be the
determining factor.
A change in accounting estimate is an adjustment of the
carrying amount of an asset or a liability, or the amount of
the periodic consumption of an asset, that results from the
assessment of the present status of, and expected future
benefits and obligations associated with, assets and liabilities.
Changes in accounting estimates result from new information
or new developments and, accordingly, are not corrections of
errors.
Prior period errors are omissions from, and misstatements in,
the entity’s financial statements for one or more prior periods
arising from a failure to use, or misuse of, reliable information
that:
was available when financial statements for those periods were
authorised for issue; and
could reasonably be expected to have been obtained and taken
into account in the preparation and presentation of those
financial statements.
57
Accounting Policies - Changes in Accounting Policies
An entity shall change an accounting
policy only if the change:
is required by an PSAK; or
results in the financial statements
providing reliable and more relevant
information about the effects of
transactions, other events or conditions on
the entity’s financial position, financial
performance or cash flows.
The following are not changes in
accounting policies:
the application of an accounting policy for
transactions, other events or conditions
that differ in substance from those
previously occurring; and
the application of a new accounting policy
for transactions, other events or conditions
that did not occur previously or were
immaterial.
58
Changes in Accounting Estimates

To the extent that a change in an accounting estimate gives rise to changes in assets and
liabilities, or relates to an item of equity, it shall be recognised by adjusting the carrying
amount of the related asset, liability or equity item in the period of the change.

The effect of a change in an accounting estimate, other than a change to which previous
session applies, shall be recognised prospectively by including it in profit or loss in:
(a) the period of the change, if the change affects that period only; or
(b) the period of the change and future periods, if the change affects both.

59
Changes in Accounting Estimates

the fair value of

inventory
bad debts; financial assets or
obsolescence;
financial liabilities;

the useful lives of, or expected pattern of

consumption of the future economic warranty
benefits embodied in, depreciable obligations.
assets; and

60
Errors
Errors can arise in respect of the recognition, measurement, presentation or disclosure of elements of financial statements. Financial
statements do not comply with PSAKs if they contain either material errors or immaterial errors made intentionally to achieve a
particular presentation of an entity’s financial position, financial performance or cash flows. Potential current period errors discovered
in that period are corrected before the financial statements are authorised for issue. However, material errors are sometimes not
discovered until a subsequent period, and these prior period errors are corrected in the comparative information presented in the
financial statements for that subsequent period.

An entity shall correct material prior period errors retrospectively in the first set of financial
statements authorised for issue after their discovery by:

if the error occurred before the earliest prior

restating the comparative amounts
period presented, restating the opening
for the prior period(s) presented in
balances of assets, liabilities and equity for
which the error occurred; or
the earliest prior period presented.

61
Development and Dynamics of PSAK

62
Big 3 PSAK that effectively implemented in
1 January 2020

PSAK 71 PSAK 72 PSAK 73

Financial Revenue from Leases
instruments contracts with
customers

63
PSAK 71 – Classification and Measurement Financial Assets

Debt or equity? (PSAK 50)

Debt Equity
FVOCI option?
Assess the business model? (irrevocable choice by
instrument)
Hold to collect Hold to collect and sell Hold
to sell
Are cash flows solely payments of principal
and interest? N0 Yes

Yes Yes No

Amortised cost FVOCI FVOCI

FVPL
(AC) (debt) (equity) 64
Impairment of Financial Assets
General model

Change in credit quality since initial recognition

Stage Stage Stage

1 2
Underperforming 3
Performing (Assets with significant increase Non-performing
(Initial recognition*) in credit risk since initial (Credit impaired assets)
recognition* )

12 month ECL
Forward looking
information should
be considered
Effective interest on
gross carrying amount
65
Overview PSAK 73
What’s changed

Old treatment for lessees:

Finance leases Operating leases Service contracts

on balance sheet off balance sheet off balance sheet

Almost all leases > 12 months Service contracts

on balance sheet off balance sheet

66
THANK YOU