Frequently Asked Questions: #financialreporting

Our due diligence process covers several key aspects of a company or project:

• Legal and Regulatory Compliance
  • Verification of business licenses and permits
  • Review of corporate documents (Articles of Association, deeds, etc.)
  • Examination of regulatory filings and compliance history
• Financial Health
  • Analysis of financial statements
  • Review of tax compliance and history
  • Assessment of debt obligations and financial commitments
• Operational Review
  • Evaluation of business operations and processes
  • Assessment of key assets and infrastructure
  • Review of major contracts and agreements
• Market Position
  • Analysis of market share and competitive landscape
  • Evaluation of customer base and relationships
  • Assessment of industry trends and growth potential
• Management and Personnel
  • Review of key management team qualifications and experience
  • Assessment of organizational structure
  • Evaluation of human resources policies and practices
• Intellectual Property
  • Verification of IP ownership and protection
  • Review of patents, trademarks, and copyrights
  • Assessment of potential IP infringement risks
• Environmental, Social, and Governance (ESG)
  • Evaluation of environmental compliance and sustainability practices
  • Assessment of social responsibility initiatives
  • Review of corporate governance structures and practices
• Risk Assessment
  • Identification of potential legal, financial, and operational risks
  • Evaluation of risk management strategies and contingency plans
  • Assessment of insurance coverage and liability exposure
• Technology and Information Systems
  • Review of IT infrastructure and cybersecurity measures
  • Assessment of data management and privacy practices
  • Evaluation of technology assets and digital capabilities

Our due diligence process is tailored to the specific needs of each client and project, ensuring a comprehensive and relevant assessment.

#dueDiligence   #riskAssessment   #compliancecheck   #financialReporting   #corporateGovernance  

Okusi Associates can provide valuable assistance in resolving complex technical accounting issues for PMA companies in Indonesia through the following services:

• Expert Accounting Team: Okusi Associates employs experienced Indonesian CPAs who are well-versed in both Indonesian Accounting Standards (PSAK) and International Financial Reporting Standards (IFRS).

• Tailored Solutions: The firm offers customized accounting solutions to address specific technical challenges faced by PMA companies, taking into account the unique aspects of Indonesian regulations and international best practices.

• Compliance Assurance: Okusi Associates ensures that financial statements and accounting practices comply with Indonesian regulations, helping companies avoid potential legal and financial risks.

• Technical Consultations: The firm provides in-depth consultations on complex accounting matters, offering guidance on proper treatment of transactions, asset valuations, and financial reporting.

• Industry-Specific Expertise: With experience across various sectors, Okusi Associates can address industry-specific accounting challenges and provide relevant insights.

• Liaison with Regulatory Bodies: When necessary, the firm can communicate with Indonesian regulatory authorities to clarify complex accounting issues or seek official guidance.

• Audit Support: For companies undergoing audits, Okusi Associates can assist in preparing documentation, explaining complex transactions, and addressing auditor queries.

• Financial Statement Preparation: The firm can help in preparing comprehensive financial statements that adhere to both local and international standards, ensuring accuracy and compliance.

• Accounting System Optimization: Okusi Associates can review and optimize accounting systems to better handle complex transactions and reporting requirements.

• Training and Knowledge Transfer: The firm can provide training to in-house accounting teams on handling complex technical issues, enhancing their capabilities.

• Continuous Updates: Okusi Associates keeps clients informed about changes in accounting standards and regulations that may impact their financial reporting.

By leveraging these services, PMA companies can effectively navigate and resolve complex technical accounting issues, ensuring accurate financial reporting and compliance with Indonesian regulations.

#technicalConsultations   #financialReporting   #IFRS   #PSAK   #compliancecheck   #accountingServices  

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.

#IFRS   #IFRScompliance   #financialReporting   #accountingStandards   #financialStatements  

Okusi Associates provides comprehensive support for ongoing regulatory compliance for PMA companies in Indonesia. Here’s how they can assist:

Regulatory Updates * Keeping clients informed about changes in laws and regulations affecting PMA companies * Providing timely notifications on new compliance requirements

License and Permit Renewals * Assisting with the renewal of business licenses and permits * Ensuring all necessary documentation is prepared and submitted on time

Corporate Secretarial Services * Organizing and documenting annual general meetings as required by law * Maintaining statutory company records and ensuring they are up-to-date

Tax Compliance * Preparing and submitting regular tax returns * Advising on tax obligations and potential changes in tax regulations

Financial Reporting * Assisting with the preparation of financial statements in accordance with Indonesian accounting standards * Ensuring compliance with financial reporting requirements for PMA companies

Employment and Immigration Compliance * Advising on labor laws and employment contracts * Assisting with work permit (KITAS) renewals and visa-related matters for foreign employees

Ongoing Legal Support * Providing guidance on legal matters affecting the company’s operations * Assisting with any necessary amendments to company documents or structures

Liaison with Government Authorities * Acting as a liaison between the company and relevant government agencies * Facilitating communication and compliance with regulatory bodies

By engaging Okusi Associates for ongoing compliance support, PMA companies can focus on their core business activities while ensuring they remain compliant with Indonesian laws and regulations.

#regulatoryCompliance   #PMAcompany   #corporateSecretarialServices   #taxCompliance   #financialReporting   #workPermitRequirements  

PMA companies in Indonesia are required to conduct financial audits annually. Here are the key points regarding financial audits for PMA companies:

• Annual Requirement: All PMA companies must undergo a financial audit once a year.

• Deadline: The audited financial statements must be prepared within 6 months after the end of the company’s fiscal year.

• Auditor Qualifications: The audit must be conducted by a licensed public accountant registered with the Indonesian Ministry of Finance.

• Scope: The audit covers the company’s financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements.

• Purpose:

  • To ensure compliance with Indonesian Financial Accounting Standards (PSAK)
  • To provide assurance to stakeholders about the company’s financial position
  • To fulfill regulatory requirements for tax reporting and other statutory obligations

• Exceptions: Small companies with total assets or annual revenue below certain thresholds may be exempt from the mandatory audit requirement. However, it’s advisable to consult with a professional or refer to the latest regulations to confirm your company’s status.

• Additional Audits: Some industries or specific circumstances may require more frequent or specialized audits. Always check the regulations specific to your business sector.

• Preparation: It’s recommended to maintain proper bookkeeping and financial records throughout the year to facilitate a smooth audit process.

Remember that while the audit is an annual requirement, maintaining accurate and up-to-date financial records should be an ongoing process throughout the year.

#financialReporting   #PMAcompany   #annualReporting   #compliancecheck  

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  

Okusi Associates can provide valuable assistance in harmonizing accounting policies following an acquisition in several ways:

• Review of Existing Policies: Conduct a thorough review of the accounting policies of both the acquiring company and the acquired entity to identify differences and areas requiring harmonization.

• Gap Analysis: Perform a detailed gap analysis to highlight discrepancies between the two sets of accounting policies and practices.

• Policy Development: Assist in developing new, unified accounting policies that comply with Indonesian Accounting Standards (PSAK) and align with the parent company’s global standards if applicable.

• Implementation Plan: Create a comprehensive implementation plan for rolling out the harmonized accounting policies across the merged entity.

• Staff Training: Provide training sessions for accounting and finance staff to ensure proper understanding and application of the new harmonized policies.

• System Integration: Advise on necessary changes to accounting systems and processes to support the harmonized policies.

• Compliance Assurance: Ensure that the harmonized policies meet all relevant regulatory requirements and accounting standards in Indonesia.

• Documentation: Assist in documenting the new policies and procedures for future reference and audit purposes.

• Transition Support: Offer ongoing support during the transition period to address any issues or questions that arise.

• Audit Preparation: Help prepare the company for its first post-acquisition audit under the new harmonized policies.

• Reporting Alignment: Ensure that financial reporting processes are aligned with the new policies to provide consistent and accurate information to stakeholders.

By leveraging Okusi Associates’ expertise in Indonesian accounting standards and practices, companies can ensure a smooth transition to harmonized accounting policies, maintaining compliance and improving financial reporting consistency across the newly merged entity.

#accountingPolicies   #financialReporting   #PSAK   #compliancecheck   #corporateGovernance  

Okusi Associates can help resolve complex technical accounting issues in the following ways:

• Their team is led by a Certified Public Accountant (CPA) and includes specialists with extensive experience across various industries like manufacturing, services, hospitality/tourism, and trading.

• They provide accounting technical advice and guidance to improve the quality of financial reporting.

• Their research and audit team has in-depth knowledge and technical expertise to assist with complex accounting challenges.

• They offer support in resolving technical accounting issues that cannot be handled in-house by a company’s finance team.

• They provide regulatory advice on both Indonesian Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

• They can assist with harmonizing accounting policies following acquisitions or other major changes.

• They offer customized in-house training courses to enhance a company’s financial accounting skills and capabilities.

• They provide ongoing updates on developments in domestic and international financial reporting to keep clients informed of changes.

• Their tailored solutions address each company’s specific financial accounting needs and challenges.

By leveraging their expertise and experience, Okusi Associates aims to help companies navigate complex accounting issues efficiently and ensure compliance with relevant standards and regulations.

#accountingServices   #financialReporting   #IFRS   #technicalConsultations   #accountingStandards  

Conducting an internal audit for a PMA company in Indonesia involves several key steps to ensure compliance with local regulations and maintain good financial practices. Here’s an overview of the process:

Preparation Phase: * Determine the scope and objectives of the audit * Create an audit plan and timeline * Assemble the audit team (internal or external auditors) * Gather relevant documents and financial records

Execution Phase: * Review financial statements and accounting records * Examine internal control systems * Assess compliance with Indonesian tax laws and regulations * Evaluate adherence to company policies and procedures * Conduct interviews with key personnel * Perform substantive testing on financial transactions

Analysis and Reporting: * Analyze audit findings and identify any discrepancies or areas of concern * Draft a preliminary audit report * Discuss findings with management and gather responses * Prepare the final audit report with recommendations

Follow-up: * Present the audit report to the board of directors or management * Develop an action plan to address any issues identified * Implement recommended changes and improvements * Schedule follow-up reviews to ensure corrective actions are taken

Key Areas of Focus for PMA Companies: * Compliance with foreign investment regulations (DNI) * Proper maintenance of statutory books and records * Accuracy of financial reporting and tax filings * Adherence to Indonesian accounting standards (PSAK) * Compliance with work permit and visa regulations for foreign employees * Proper documentation of related party transactions * Adherence to capital requirements and investment realization

Best Practices: * Conduct internal audits regularly (at least annually) * Maintain independence and objectivity throughout the audit process * Document all audit procedures and findings thoroughly * Ensure open communication between auditors and management * Stay updated on changes in Indonesian regulations affecting PMA companies

By following these steps and focusing on key areas specific to PMA companies, you can conduct a comprehensive internal audit that helps ensure compliance and identifies areas for improvement in your company’s operations and financial management.

#internalAudit   #PMAcompany   #compliancecheck   #financialReporting   #regulatoryCompliance  

Okusi Associates ensures compliance with Indonesian Generally Accepted Accounting Principles (GAAP) through several key practices:

• Employing qualified Indonesian CPAs who are well-versed in local accounting standards
• Staying up-to-date with the latest changes in Indonesian financial regulations and GAAP
• Implementing rigorous internal quality control processes
• Utilizing specialized accounting software tailored for Indonesian GAAP compliance
• Providing ongoing training and professional development for staff
• Conducting regular internal audits to ensure adherence to GAAP standards
• Collaborating with regulatory bodies and professional associations to maintain best practices
• Offering comprehensive accounting and financial reporting services that align with Indonesian GAAP requirements
• Assisting clients in preparing financial statements that meet local regulatory standards
• Providing guidance on proper documentation and record-keeping to support GAAP compliance

By following these practices, Okusi Associates helps ensure that their clients’ financial statements and accounting processes are fully compliant with Indonesian GAAP, reducing the risk of regulatory issues and providing accurate financial information for decision-making and reporting purposes.

#financialReporting   #accountingStandards   #PSAK   #compliancecheck   #financialStatements  

Outsourcing financial accounting services to Okusi Associates offers several key benefits for PMA companies in Indonesia:

• Expertise in Indonesian Regulations: Okusi Associates specializes in Indonesian accounting standards and tax regulations, ensuring compliance with local requirements.

• Cost-Effective Solution: Eliminates the need for an in-house accounting team, reducing overhead costs associated with salaries, benefits, and office space.

• Time Savings: Allows company management to focus on core business activities rather than complex accounting tasks.

• Accuracy and Reliability: Professional accountants with extensive experience in Indonesian financial reporting provide accurate and reliable financial statements.

• Timely Reporting: Ensures that all required financial reports are prepared and submitted to relevant authorities on time, avoiding penalties for late filings.

• Tax Optimization: Expertise in Indonesian tax laws helps optimize tax positions and identify potential savings opportunities.

• Scalability: Services can be adjusted to meet the changing needs of growing businesses.

• Multilingual Support: Ability to prepare financial reports in both Indonesian and English, facilitating communication with foreign stakeholders.

• Technology Integration: Utilization of modern accounting software and systems for efficient data management and reporting.

• Audit Readiness: Maintains financial records in a manner that simplifies the annual audit process.

• Regulatory Updates: Keeps clients informed about changes in accounting standards and tax regulations that may impact their business.

• Comprehensive Services: Offers a range of services including bookkeeping, financial statement preparation, tax reporting, and payroll management.

• Risk Mitigation: Reduces the risk of errors and non-compliance by relying on professionals well-versed in Indonesian financial regulations.

By outsourcing to Okusi Associates, PMA companies can ensure professional financial management while focusing on their core business operations in the Indonesian market.

#financialAccounting   #outsourcing   #accountingServices   #taxCompliance   #financialReporting  

Okusi Associates can assist with harmonizing accounting policies following an acquisition in several ways:

1. Policy review and analysis: Their team of experts, led by a Certified Public Accountant, can thoroughly review the existing accounting policies of both the acquiring company and the acquired company to identify differences and areas that need harmonization.

2. Tailored solutions: They provide customized solutions to address the specific challenges of harmonizing accounting policies post-acquisition, taking into account the unique circumstances of each company involved.

3. IFRS and GAAP expertise: With their knowledge of both International Financial Reporting Standards (IFRS) and Indonesian Generally Accepted Accounting Principles (GAAP), they can ensure the harmonized policies comply with relevant standards.

4. Technical accounting support: For complex technical accounting issues that arise during the harmonization process, Okusi Associates offers specialized support to resolve these challenges.

5. Staff training: They provide customized in-house training courses to help your finance team understand and implement the newly harmonized accounting policies.

6. Ongoing guidance: As you work through the harmonization process, their team can offer continuous advice and support to ensure smooth implementation.

7. Regulatory compliance: They ensure that the harmonized policies meet all regulatory requirements in Indonesia.

8. Efficiency improvements: By streamlining and standardizing accounting processes across the merged entity, they can help increase overall efficiency in financial reporting.

9. Quality assurance: Their services aim to improve the quality of financial reporting following the acquisition.

10. Updates on reporting developments: They keep clients informed about any relevant changes in domestic or international financial reporting standards that may impact the harmonized policies.

By leveraging Okusi Associates’ expertise, companies can more effectively navigate the complexities of accounting policy harmonization post-acquisition, ensuring compliance, accuracy, and efficiency in their financial reporting processes.

#accountingPolicies   #financialReporting   #IFRS   #corporateGovernance   #consultingServices  

PMA companies in Indonesia are required to prepare and submit annual financial statements to the Indonesian Tax Office. Here are the key requirements:

Preparation of Financial Statements:

• Financial statements must be prepared in accordance with Indonesian Financial Accounting Standards (SAK).
• The statements should include:
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Statement of Changes in Equity
  • Notes to the Financial Statements

Submission Requirements:

• Deadline: Annual financial statements must be submitted along with the Annual Corporate Income Tax Return (SPT Tahunan PPh Badan) by the end of the fourth month after the end of the fiscal year.
• Language: Financial statements should be prepared in Indonesian language.
• Currency: The statements should use Indonesian Rupiah (IDR) as the reporting currency.

Additional Requirements:

• For companies with gross revenue exceeding IDR 50 billion per year, the financial statements must be audited by a certified public accountant.
• Companies listed on the Indonesian Stock Exchange have additional reporting requirements set by the Financial Services Authority (OJK).

Supporting Documents:

• Trial Balance
• General Ledger
• Sub-ledgers for major accounts
• Bank statements and reconciliations
• Fixed asset register
• Inventory list (if applicable)

Electronic Submission:

• The Indonesian Tax Office has implemented an e-Filing system for tax returns and financial statements.
• Companies are required to submit their financial statements electronically through this system.

Penalties:

• Failure to submit financial statements or submitting incomplete/inaccurate statements can result in penalties, including fines and potential tax audits.

It’s important to note that the specific requirements may vary depending on the company’s size, industry, and other factors. Engaging with a professional accounting firm or tax consultant familiar with Indonesian regulations is highly recommended to ensure full compliance and accurate reporting.

#annualFinancialStatements   #indonesianTaxOffice   #financialReporting   #taxCompliance   #PSAK  

The accountancy and tax reporting packages offered by Okusi Associates include the following consultancy services that can benefit your business:

1. Basic consultancy services:

• 1 hour of consultancy services per year is included in the standard package for both VAT and non-VAT companies.

2. Additional consultancy services:

• Available at a rate of Rp3,600,000 per hour if you need more than the included 1 hour.

These consultancy services can benefit your business in several ways:

• Expert guidance: You’ll have access to experienced accountants and tax professionals who can provide advice on complex financial and tax matters specific to Indonesia.

• Compliance assistance: The consultants can help ensure your company stays compliant with Indonesian tax regulations and accounting standards.

• Strategic decision-making: They can offer insights to help you make informed financial and tax-related decisions for your business.

• Problem-solving: If you encounter any issues or have questions about your financial reporting or tax obligations, the consultants can provide solutions.

• Updates on regulations: They can keep you informed about changes in Indonesian tax laws and accounting requirements that may affect your business.

• Optimization of financial practices: The consultants can suggest ways to improve your financial management and potentially reduce your tax burden legally.

• Risk mitigation: By identifying potential issues early, they can help you avoid costly mistakes or penalties.

• Customized advice: The consultancy time allows for addressing your company’s specific needs and challenges.

Overall, these consultancy services provide valuable expert support to navigate the complexities of Indonesian accounting and taxation, helping to ensure your business operates smoothly and remains compliant. The ability to purchase additional hours allows for flexibility as your needs change or more complex issues arise.

#accountancyServices   #taxAdvisory   #consultingServices   #compliancecheck   #financialReporting   #indonesianTaxSystem  

The accountancy and tax reporting packages offered include a range of consultancy services that can significantly benefit your business:

Included Services:

• Monthly bookkeeping and financial statement preparation
• Monthly tax calculations and reporting (including VAT, withholding taxes, and corporate income tax)
• Annual tax return preparation and filing
• Regular financial health check-ups and analysis
• Guidance on tax compliance and optimization strategies
• Assistance with tax authority correspondence and audits

Benefits to Your Business:

• Compliance Assurance: Ensures your company adheres to Indonesian accounting standards and tax regulations, minimizing the risk of penalties or legal issues.

• Time and Resource Savings: Frees up your internal resources to focus on core business activities while experts handle complex financial tasks.

• Financial Insights: Regular financial reports and analysis help you make informed business decisions based on accurate, up-to-date information.

• Tax Optimization: Professional guidance can help identify legitimate tax-saving opportunities and ensure you’re not overpaying.

• Audit Readiness: Properly maintained books and records make your company better prepared for potential tax audits.

• Expert Support: Access to experienced professionals who can provide advice on financial matters specific to operating in Indonesia.

• Peace of Mind: Knowing that your financial and tax obligations are being handled by qualified experts allows you to focus on growing your business.

• Scalability: As your business grows, these services can be adjusted to meet your changing needs.

By leveraging these consultancy services, you can ensure your PMA company maintains financial health, stays compliant with Indonesian regulations, and is well-positioned for growth in the Indonesian market.

#accountancyServices   #taxReporting   #financialReporting   #taxCompliance   #consultingServices  

The General Ledger is a crucial component of a company’s financial record-keeping system. Here’s an overview of how it’s maintained and its key components:

Maintenance of the General Ledger

• The General Ledger is typically maintained using accounting software, which automates many of the processes involved.
• Transactions are recorded in chronological order and categorized into appropriate accounts.
• Regular reconciliations are performed to ensure accuracy and detect any discrepancies.
• The ledger is updated in real-time or at regular intervals, depending on the system used.

Key Components of the General Ledger

• Chart of Accounts: This is a structured list of all accounts used by the company, including:

  • Asset accounts
  • Liability accounts
  • Equity accounts
  • Revenue accounts
  • Expense accounts

• Journal Entries: These record all financial transactions, including:

  • Date of the transaction
  • Accounts affected
  • Amounts debited or credited
  • Brief description of the transaction

• Account Balances: Running totals for each account in the chart of accounts.

• Trial Balance: A report that lists all accounts and their balances to ensure debits equal credits.

• Financial Statements: The General Ledger data is used to generate:

  • Balance Sheet
  • Income Statement
  • Cash Flow Statement

• Subsidiary Ledgers: Detailed records for specific accounts, such as:

  • Accounts Receivable ledger
  • Accounts Payable ledger
  • Inventory ledger

• Audit Trail: A chronological record of all transactions and changes made to the ledger.

Additional Considerations for Indonesian PMA Companies

• The General Ledger must comply with Indonesian Financial Accounting Standards (SAK).
• It should be maintained in Indonesian Rupiah (IDR) as the functional currency.
• Regular reporting to Indonesian tax authorities is required, so the ledger should facilitate easy extraction of relevant data.
• For companies with foreign ownership, additional records may be needed to track capital investments and profit repatriation.

Maintaining an accurate and up-to-date General Ledger is essential for financial reporting, tax compliance, and informed decision-making. It’s advisable to work with qualified accountants familiar with Indonesian regulations to ensure proper maintenance and reporting.

#generalLedger   #financialAccounting   #financialReporting   #PSAK   #indonesianAccountingStandard  

Based on the information provided, here are the key requirements for preparing and submitting annual financial statements to the Indonesian Tax Office:

1. Financial statements must include:

   • Statement of Financial Position (Balance Sheet)
   • Statement of Comprehensive Income (Income Statement)
   • General Ledger
   • List of Assets and depreciation
   • List of prepayments, leases and amortization

2. Financial statements must be prepared in accordance with Indonesian accounting standards and tax regulations.

3. The statements must be prepared in the Indonesian language and use Indonesian Rupiah currency. Certain companies may be permitted to use English and USD after obtaining approval.

4. Books, records and supporting documents must be stored for 10 years in Indonesia.

5. The fiscal year is typically January 1 to December 31, but companies can use a different fiscal year with approval.

6. Annual financial statements must be submitted within 4 months after the end of the fiscal year.

7. Submission is done electronically through the Directorate General of Taxes website.

8. Companies must have a tax ID number (NPWP) to submit financial statements.

9. An electronic filing number (EFIN) is required for online submission. This can be obtained from the tax office.

10. For corporate taxpayers, additional documents required include:

    • Monthly and annual withholding tax reports
    • Monthly income tax reports
      
    • Annual income tax report
    • Investment plan

11. Small companies with annual revenue under 4.8 billion rupiah may be eligible for simplified 0.5% tax reporting.

12. Late submission can result in penalties, including a 2% monthly interest charge on tax payable.

13. Companies may need to engage professional accounting services to ensure proper preparation and compliance.

Okusi Associates offers comprehensive accounting and tax reporting services to assist companies in meeting these requirements and ensuring compliance with Indonesian tax regulations.

#annualFinancialStatements   #indonesianTaxOffice   #financialReporting   #taxCompliance   #NPWP  

Outsourcing accountancy and tax reporting services to Okusi Associates offers several key benefits for PMA companies in Indonesia:

• High-quality, tailored service: Okusi Associates provides personalized solutions based on understanding each client’s specific needs and issues. Their experienced team ensures accurate and compliant financial reporting and tax filings.

• Expertise in Indonesian regulations: Their accountants and tax specialists have in-depth knowledge of Indonesian tax laws, accounting standards, and compliance requirements specific to PMA companies. This helps ensure full compliance and minimizes risks.

• Comprehensive service package: Okusi offers complete packages covering accounting, monthly and annual tax reporting, and auditing services. This integrated approach ensures consistency across all financial processes.

• Time and cost savings: By outsourcing, PMA companies can focus internal resources on core business activities rather than complex accounting and tax matters. This often results in overall cost savings compared to maintaining an in-house team.

• Access to advanced tools: Okusi utilizes high-tech accounting and tax software that may be cost-prohibitive for individual companies to acquire and maintain.

• Scalability: Services can be scaled up or down based on the company’s changing needs, providing flexibility as the business grows.

• Risk mitigation: Their expertise helps minimize errors in financial reporting and tax filings, reducing the risk of penalties or audits.

• Strategic insights: Beyond compliance, Okusi can provide valuable financial insights to support business decision-making and growth strategies.

• Ongoing support: Okusi offers continuous assistance with evolving regulations, tax planning, and addressing any financial queries or issues that arise.

• Peace of mind: PMA companies can have confidence that their accounting and tax obligations are being handled professionally and in full compliance with Indonesian laws.

By leveraging Okusi Associates’ specialized knowledge and resources, PMA companies can ensure accurate financial management and tax compliance while freeing up time and resources to focus on their core business operations and growth in the Indonesian market.

#outsourcing   #accountingServices   #taxReporting   #PMAcompany   #financialReporting