One part of accounting focuses on presenting the information in the form of general-purpose financial statements (balance sheet, income statement, etc.) to people outside of the company. These external reports must be prepared in accordance with generally accepted accounting principles often referred to as GAAP or US GAAP. This part of accounting is referred to as financial accounting.
Accounting also entails providing a company's management with the information it needs to keep the business financially healthy. These analyses and reports are not distributed outside of the company. Some of the information will originate from the recorded transactions but some of the information will be estimates and projections based on various assumptions. Three examples of internal analyses and reports are budgets, standards for controlling operations, and estimating selling prices for quoting new jobs. This area of accounting is known as management accounting.
Another part of accounting involves compliance with government regulations pertaining to income tax reporting.
Today much of the recording, storing, and sorting aspects of accounting have been automated as a result of the advances in computer technology. (http://www.accountingcoach.com/blog/what-is-accounting)
Financial reporting framework in Indonesia
The standard setting-body in indonesia is the Financial Accounting Standard Board (Dewan Standar Akuntansi Keuangan or DSAK) Under Indonesia Institute Of Accountants (Ikatan Akuntansi Indonesia or IAI). Under Indonesia law, both public and private companies must comply with accounting standard issued by DSAK-IAI.
Indonesia's Apporach to IFRS adoption is to maintain its national GAAP (Indonesia Financial Accounting Standards, IFAS) and converge it gradually with IFRSs as much as possible. Currently there is no plan (and consequently no timetable) for a full adoption or IFRSs.
Indonesia is striving to minimise the significant differences between IFRSs and IFASs gradually. Since 2012 the local standards Applied in Indonesia are based on those IFRSs that were effective at 1 January 2009. However, some modification were made. Indonesia will continue the convergence process by considering recent amendements, news standards ( eg IFRSs 9 to 13), IFRS Exposure Drafts.
Currently, the DSAK is committed to maintain a one year difference with IFRS as issued by the IASB until indonesia decides when it will go for full adoption. therefore, the expectation is to converge Indonesian national GAAP (PSAK) with IFRSs as they stood on 1 January 2014 as of 1 January 2015, with IFRSs as they stood on 1 January 2015 as of 1 January 2016 etc. Unless there is a reason not to do so. For Example, IFRS 9 will not be adopted piecemeal: Indonesia is waiting until all phases are completed before considering adopting the standard.
Indonesia will also consider result from the implementation of the first wave of standards resulting from convergence process before new standards are developed. The Jurisdiction will also provide for transition periods of three four years for new standards, however, Indonesia is striving at the same time to keep the gaps between the effective dates of new IFRSs and new IFASs that are based on them as short as possible.
Domestic listed companies do not have the option to fully comply with IFRS.
(http://www.iasplus.com/en/jurisdictions/asia/indonesia)
In Indonesia are busy talking about Tax Amnesty,
Explain . Rendeem . Rellief
With Tax Amnesty Out the Way, Indonesia Seeks to Lure Investors
After successfully pushing through a tax amnesty law to bring back funds parked overseas, Indonesia’s next key economic agenda item is improving the business climate and directing investment into the processing of commodities, the finance minister said.
To attract investment in manufacturing, infrastructure and services, especially tourism, the government will focus on cutting red tape, Finance Minister Bambang Brodjonegoro said in a Bloomberg Television interview at the Group of 20 meeting in Chengdu, China. That’s in line with its goal of transforming the economy into one based on investment, rather than being dependent on consumption and developing industries to process raw materials, he said.
“The big barrier is our complacency to the commodities,” he said in the interview on July 23. “But with strong consistency from the government, we will be able to do that. Of course it will take time, maybe it won’t be in one to two years, but hopefully in three or four years, we can start seeing the result of this effort.”
President Joko Widodo has been seeking new sources of growth as prices of commodities that made up the bulk of the nation’s exports continue to languish, restricting economic growth at about 5 percent, compared with the 7 percent he pledged when he took office in 2014.
Tax Amnesty
His cabinet has simplified investment permit processes, cut dwelling time at ports and is drafting rules to address dispute settlements -- strategies the government hopes will boost Indonesia’s rank by at least 69 notches to put it among the top 40 nations on the World Bank’s Ease of Doing Business index next year.
The approval of a tax amnesty law in June has given Brodjonegoro some breathing room to boost fiscal spending and prop up growth in the face of weakening revenue. The budget deficit reached 1.83 percent of gross domestic product in the first half, compared with the full-year target of 2.35 percent.
Brodjonegoro said he is readying himself to address a judicial challenge against the law that has been submitted to the Constitutional Court, which is adding to uncertainty on whether the program will succeed.
“We are not concerned,” he said. “Because of our democratic system, all of the new legislation produced by the government and parliament are always challenged in the Constitutional Court. It has been like a ritual.”
So far, investors seem to agree that the tax amnesty will succeed. The nation’s bonds and stocks have attracted a combined $9 billion of inflows this year. The local debt market even saw inflows on June 24, the day after the U.K. voted to leave the European Union, which triggered a widespread sell-off in global financial markets.
The benchmark Jakarta Composite Index entered a bull market on June 29, having gained 13 percent so far in 2016. The rupiah has strengthened 5.2 percent this year, the third-best performer among Asia’s 11 most actively-traded currencies. (http://www.bloomberg.com/news/articles/2016-07-24/with-tax-amnesty-out-the-way-indonesia-seeks-to-lure-investors)
Indonesia's approach to IFRS adoption is to maintain its national GAAP (Indonesian Financial Accounting Standards, IFAS) and converge it gradually with IFRSs as much as possible. Currently there is no plan (and consequently no timetable) for a full adoption of IFRSs.
Indonesia is striving to minimise the significant differences between IFRSs and IFASs gradually. Since 2012, the local standards applied in Indonesia are based on those IFRSs that were effective at 1 January 2009. However, some modifications were made. Indonesia will continue the convergence process by considering recent amendments, newer standards (eg IFRSs 9 to 13), and IFRS Exposure Drafts.
Currently, the DSAK is committed to maintain a one year difference with IFRS as issued by the IASB until Indonesia decides when it will go for full adoption. Therefore, the expectation is to converge Indonesian national GAAP (PSAK) with IFRSs as they stood on1 January 2014 as of 1 January 2015, with IFRSs as they stood on1 January 2015 as of 1 January 2016 etc. unless there is a reason not to do so. For example, IFRS 9 will not be adopted piecemeal; Indonesia is waiting until all phases are completed before considering adopting the standard.
Indonesia will also consider results from the implementation of the first wave of standards resulting from the convergence process before new standards are developed. The jurisdiction will also provide for transition periods of three to four years for new standards, however, Indonesia is striving at the same time to keep the gaps between the effective dates of new IFRSs and new IFASs that are based on them as short as possible.
Domestic listed companies do not have the option to fully comply with IFRS.is de
T
he standard-setting body in Indonesia is the Financial Accounting Standards Board (Dewan Standar Akuntansi Keuangan or DSAK) under the Indonesian Institute of Accountants (Ikatan Akuntan Indonesia or IAI). Under Indonesian law, both public and private companies must comply with accounting standards issued by the DSAK-IAI.
Indonesia's approach to IFRS adoption is to maintain its national GAAP (Indonesian Financial Accounting Standards, IFAS) and converge it gradually with IFRSs as much as possible. Currently there is no plan (and consequently no timetable) for a full adoption of IFRSs.
Indonesia is striving to minimise the significant differences between IFRSs and IFASs gradually. Since 2012, the local standards applied in Indonesia are based on those IFRSs that were effective at 1 January 2009. However, some modifications were made. Indonesia will continue the convergence process by considering recent amendments, newer standards (eg IFRSs 9 to 13), and IFRS Exposure Drafts.
Currently, the DSAK is committed to maintain a one year difference with IFRS as issued by the IASB until Indonesia decides when it will go for full adoption. Therefore, the expectation is to converge Indonesian national GAAP (PSAK) with IFRSs as they stood on1 January 2014 as of 1 January 2015, with IFRSs as they stood on1 January 2015 as of 1 January 2016 etc. unless there is a reason not to do so. For example, IFRS 9 will not be adopted piecemeal; Indonesia is waiting until all phases are completed before considering adopting the standard.
Indonesia will also consider results from the implementation of the first wave of standards resulting from the convergence process before new standards are developed. The jurisdiction will also provide for transition periods of three to four years for new standards, however, Indonesia is striving at the same time to keep the gaps between the effective dates of new IFRSs and new IFASs that are based on them as short as possible.
Domestic listed companies do not have the option to fully comply with IFRS.
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