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The Financial Services Authority (OJK) issued Financial Services Authority Regulation Number 26 of 2023 concerning Users of International Financial Accounting Standards in the Capital Market (POJK 26/2023). The issuance of this POJK legitimizes the use of International Financial Accounting Standards (IFAS) issued by the Indonesian Institute of Accountants (IAI) by users in the capital market.
In the POJK signed by the Chairman of the OJK Board of Commissioners Mahendra Siregar, it is stated that the issuance of this POJK provides legal certainty for public companies listed in more than one country in preparing financial statements. The POJK, which is promulgated and valid since December 22, 2023, is in line with Indonesia’s commitment as a member of the G-20, to improve Indonesia’s ranking in the eyes of the world. This POJK is also to simplify the guidelines for preparing financial statements for companies that use International Financial Accounting Standards (SAK).
Chairman of the IAI National Executive Board Ardan Adiperdana appreciated the issuance of POJK 26/2023, as well as a form of confirmation of the legitimacy of IAI as a standard setter, which has compiled SAK since 1973. Currently, SAK published by IAI that has been applicable in the financial reporting ecosystem in Indonesia consists of Indonesian SAK, Indonesian SAK for Micro, Small and Medium Entities, Indonesian SAK for Private Entities, Sharia PSAK/ISAK, and International SAK.
“IAI appreciates the issuance of this POJK, because it will increase the accountability and transparency of the financial statements of Indonesian entities, especially improve the comparability of Indonesian companies with any company globally. As a standard setter, IAI not only develops financial accounting standards, but also sustainability disclosure standards which are the demands of the future of business and economy in the world.” explained Ardan.
The application of International SAK applies since the financial year period or after January 1, 2024. For public companies listed in more than one country can apply this International SAK as a reference in preparing financial statements.
Substance of POJK 26/2023
Some of the substances in the POJK regulation include accounting provisions in the capital market sector and International Financial Accounting Standards (IFAS), users of IFAS, and annual reports. Provisions regarding the preparation of financial statements include accounting provisions that become a reference for listed public companies in more than one country, and the obligation to prepare financial statements in accordance with accounting provisions for listed public companies in more than one country.
This POJK 26.2023 also mentions the regulation of the option to prepare financial statements in accordance with International SAK and exclude related OJK regulations; regulation that International SAK Users are required to apply International SAK consistently; transitional provisions when International SAK Users are no longer a public company listed in more than 1 country; disclosure requirements that must be made when choosing the option to use International SAK as a reference for preparing financial statements; and other related provisions.
POJK 26 of 2023 concerning Users of International Financial Accounting Standards in the Capital Market can be viewed in the following document:
Source : Indonesian Institute of Accountants
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