• Accounting
• ||
• December 26, 2023

Financial Accounting Standards (SAK) are Statements of Financial Accounting Standards (PSAK) and Interpretations of Financial Accounting Standards (ISAK) issued by the Standards Board of the Indonesian Institute of Accountants (DSAK IAI) and the Sharia Standards Board of the Indonesian Institute of Accountants (DSAS IAI) as well as capital market regulatory regulations for entities under their supervision as the development of financial accounting standards begins:

1. In 1973 the Indonesian Accounting Principles (PAI) were issued, then the Indonesian Accounting Principles (PAI) were revised and modified in SAK in 1994.
2. Then in 2008 Indonesia joined the G-20 to support the achievement of One global accounting standard. In the year
3. In January 2012: in Phase 1  of SAK convergence (SAK January 1, 2012 with IFRS convergence January 1, 2009)
4. January 2015: Phase 2 Convergence of SAK with IFRS: SAK effective as of January 1, 2014
5. May 25, 2016 : joint statement between IFRS Foundation, OJK, IAI
6. January 1, 2022 : SAK as of January 1, 2022 is substantially convergent with IFRS as of January 1, 2021.
7. Latest: SAK Internasioanl Indonesian financial reporting standards framework (KSPKI) SAK naming and nomenclarture

Indonesian financial reporting standards framework (KSPKI)
Endorsed by the financial accounting standards board of the Indonesian accounting association (DSAK IAI) on December 12, 2022. Explained about the definition of financial accounting standards, what SAK pillars are applicable in Indonesia and their definitions, the criteria for entities that can use SAK in each pillar, the conditions for transferring between SAK pillars. The Indonesian Financial Reporting Standards Framework (KSPKI) is effective from January 1, 2024.

Indonesian Financial Reporting Standards Framework KSPKI-Pillar SAK is based on a conceptual framework and has four pillars, namely:
Pillar 1 International SAK (effective January 1, 2024)
Pillar 2 Indonesian SAK (now called general SAK)
Pillar 3: Indonesian SAK for Private entities (EP)  effective January 1, 2025
Pillar 4: Indonesian SAK for Indonesia EMKM
Additional Sharia PSAK and ISAK

The use of each PILAR is regulated in KSPKI
All entities in Indonesia can be seen whether they have public accountability or not. Entities can be seen with significant public accountability if the entity is listed / in the process of being listed on the capital market or has publicly traded debt instruments. Then the entity has public or fiduciary funds. If this is fulfilled or owned by an entity then the entity is with significant public accountability. The definition will determine what standards each entity can use as follows:

• Entities with Public Accountability = (International SAK, Indonesian SAK, Indonesian SAK for ETAP/EP, and Indonesian SAK for EMKM)
• Entities without Public Accountability = (SAK Indonesia, SAK Indonesia for ETAP/EP)
• Entity without Public Accountability number EMKM = (SAK Indonesia, SAK Indonesia for ETAP/EP, and SAK Indonesia for EMKM)

Movement between SAK Pillars

1. KSPKI regulates the transfer between SAK pillars to accommodate and clarify the accounting treatment requirements for entities that will move from a SAK pillar with lower requirements to a SAK with higher requirements or upgrade.
2. Moving from a SAK pillar with higher requirements to a SAK pillar with lower requirements is not permitted. In accordance with the existing requirements in each SAK pillar, except from pillar 1 to pillar 2 if the entitlement criteria for using the SAK. Except from pillar 1 to pillar 2 if the entity’s criteria for using International GAAP are no longer met.
3. The impact of changes in accounting policies in accordance with the applicable SAK after the change.

International SAK Nomenclature

• Refers to the IFRS/IAS/IFIC/SIC number of the IFRS Accounting Standard.
  4-digit number - example: IFRS 3- PSAK /103
  First digit Letter “i” Contoh: IAS 20-PSAk i220
  PSAK: References from IFRS (1) and IAS (2)
  ISAK: from IFRIC (1) and SIC (2)
  The 3rd and 4th digits are IFRS numbers. IAS, IFERIC, SiC
• changed from the previous numbering in SAk, which refers to the IFRS / IAS / IFRIC / SIC number of the IFRS Accounting standard for convergent PSAK / ISK IFRS Accounting Standard.
• Effective on January 1, 2024
• Does not change the content of the requirements in PASk/ISAk