Frequently Asked Questions: #ifrscompliance

Okusi Associates can provide comprehensive assistance with implementing International Financial Reporting Standards (IFRS) for your company in Indonesia. Here’s how they can help:

• Expert Guidance: Okusi’s team of experienced accountants and financial professionals can offer expert guidance on IFRS implementation, ensuring your company’s financial reporting aligns with international standards.

• Gap Analysis: They can conduct a thorough gap analysis between your current accounting practices and IFRS requirements, identifying areas that need adjustment.

• Customized Implementation Plan: Based on the gap analysis, Okusi can develop a tailored IFRS implementation plan specific to your company’s needs and industry.

• Staff Training: They can provide training sessions for your accounting and finance staff to ensure they understand IFRS principles and application.

• System Upgrades: If necessary, Okusi can advise on and assist with upgrading your financial reporting systems to support IFRS compliance.

• Ongoing Support: Throughout the implementation process, Okusi can offer continuous support and address any challenges that arise.

• Financial Statement Preparation: They can assist in preparing IFRS-compliant financial statements, ensuring all required disclosures are included.

• Audit Readiness: Okusi can help prepare your company for audits under IFRS, ensuring your financial records meet the necessary standards.

• Regulatory Compliance: They can ensure your IFRS implementation aligns with Indonesian regulatory requirements, bridging international standards with local regulations.

• Industry-Specific Guidance: Okusi can provide insights on IFRS application specific to your industry, addressing any sector-specific reporting requirements.

By leveraging Okusi Associates’ expertise, your company can smoothly transition to IFRS, enhancing the transparency and international comparability of your financial reporting.

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Financial reporting requirements for companies in Indonesia are governed by various regulations and standards. Here’s an overview of the key regulatory requirements:

Applicable Regulations:

• Indonesian Financial Accounting Standards (PSAK)
• Law No. 40 of 2007 on Limited Liability Companies
• Capital Market and Financial Institution Supervisory Agency (OJK) regulations for public companies

Key Requirements:

• Annual Financial Statements: Companies must prepare annual financial statements consisting of:

  • Balance sheet
  • Income statement
  • Cash flow statement
  • Statement of changes in equity
  • Notes to the financial statements

• Accounting Standards: Financial statements must be prepared in accordance with Indonesian Financial Accounting Standards (PSAK), which are largely aligned with International Financial Reporting Standards (IFRS).

• Language and Currency: Financial statements should be prepared in Indonesian language and presented in Indonesian Rupiah (IDR).

• Filing Deadlines:

  • Private companies: Within 6 months after the end of the financial year
  • Public companies: Within 4 months after the end of the financial year

• Audit Requirements:

  • Public companies: Annual financial statements must be audited by a registered public accountant
  • Private companies: Audit requirements depend on company size and other factors (e.g., total assets, annual turnover)

• Board of Directors’ Report: Companies must prepare an annual report of the Board of Directors, providing an overview of the company’s performance and future plans.

• Consolidated Financial Statements: Required for companies with subsidiaries, presenting the financial position and results of the entire group.

• Specific Industry Requirements: Certain industries (e.g., banking, insurance) may have additional reporting requirements set by their respective regulatory bodies.

• Tax Reporting: Companies must submit annual corporate income tax returns, which should be based on the audited financial statements.

Additional Considerations:

• Companies may need to maintain their accounting records for a minimum of 10 years.
• Foreign-owned companies (PMA) may have additional reporting requirements to the Investment Coordinating Board (BKPM).
• Publicly listed companies are subject to more stringent reporting and disclosure requirements set by the OJK and Indonesia Stock Exchange (IDX).

It’s important to consult with qualified professionals or refer to the latest regulations for the most up-to-date and specific requirements applicable to your company’s situation.

#financialReporting   #PSAK   #annualFinancialStatements   #IFRScompliance   #regulatoryCompliance