Materi_PSAK_25

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PSAK 25 (Revisi 2009):

KEBIJAKAN AKUNTANSI, PERUBAHAN ESTIMASI

AKUNTANSI, DAN KESALAHAN

Jakarta, 23 November 2010

Basar AlhueniusTim Implementasi IFRS Ikatan Akuntan Indonesia

SOSIALISASI PSAK

DANA PENSIUNJakarta, 23 November 2010


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Agenda

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Objective

Selecting and applying accounting policies

Accounting for changes in:

- accounting policies

- accounting estimates

Corrections of material prior period errors


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Objective

PSAK 25 prescribes the:

selection criteria used in determining accounting policies, as

well as the accounting treatment and disclosure of changes

to accounting policies;

requirements for changes to accounting estimates and the

accounting treatment and disclosure of such changes;

definition of errors and the accounting treatment and

disclosure of error.

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ObjectiveThe application of a standard set of criteria obviously ensures

consistency amongst different entities however, it also

ensures that consistency exists between the current and

previous financial statements of a particular entity.

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Agenda

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Objective







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Selection of Accounting Policy

Main Changes from PSAK 25 (1994)

- Provide guidance in the selection of accounting policies

when there are no specific SAKs applicable fortransactions, events or other conditions.

- Accounting policies for a period should be selected and

applied consistently for similar transactions, events andcircumstances unless a Standard or Interpretation

requires or permits a categorisation of items for

which different policies may be appropriate

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Selection of Accounting Policy Main Changes from PSAK 25 (1994) (cont'd)

- A change in accounting policy should be made only if it:

is required by PSAK; or

results in a more reliable and relevantpresentation in the financial statements of theeffects of transactions or other events on theentitys financial position, performance or cashflows

Note: Early adoption of a policy to reassess assets inaccordance with PSAK 16: Fixed assets or PSAK 19: Intangibleassets which will result to adoption of revaluation method isconsidered a change in accounting policy that should be dealtwith under PSAK 16 or PSAK 19 and not in accordance withPSAK 25.

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Consistency of accounting policies

Select and apply accounting policy consistently for similar

transactions, other events and conditions

May adopt different policies where

- a Standard or an Interpretation requires or permits

categorisation of items for which different policies may

be appropriate

- but accounting policy shall be selected and applied

consistency to each category

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Disclosure Judgment and Estimation Disclose the judgements made by management that have

the most significant effect on the amounts recognised in

the financial statements

Disclose information about key assumptions concerning

the future, and other key sources of estimation uncertainty

- disclose for those assets and liabilities

their nature; and

their carrying amount as of the balance sheetdate

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Case Example 1 Materiality Considerations

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Question

An entity constructs its own property, plant & equipment. A

small proportion (Rp 100mio) of the costs that are

capitalised each year for these assets do not meet the

definition of cost as set out in PSAK 16. These costs are

immaterial both in the context of the entitys profits and

balance sheet position, is it appropriate for the entity not to

apply the accounting policy for PP&E to them?


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Case Example 1 Materiality Considerations

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Answer

PSAK 25 states that the accounting policies in PSAKs need

not be applied when the effect of applying them is

immaterial. In this case, it can be argued that as applyingPSAK to these amounts would be immaterial in the context

of both the balance sheet and income statement, then this

would be acceptable under the materiality provisions of

PSAK 25.


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Agenda

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Objective







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Changes in Accounting Policies

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Consistency is important

Change an accounting policy only if the change:

- is required by a Standard or an Interpretation; or

- results in the financial statements providing reliable andmore relevant information about the effects of

transactions, other events or conditions on the entitys

financial position, financial performance or cash flows


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Selection of Accounting Policy

Main Changes from PSAK 25 (1994) (cont'd)

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Applying Changes In Accounting Policy

Changes in accounting

policies

Application of a standard

or interpretation

Voluntary change in

accounting policy

Specific transitional

provisions

Apply specific

transitional provisions

Apply change

retrospectivelyYes

No


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Applying Changes in Accounting Policies

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Impracticable

Applying a requirement is

impracticable when the entity cannot

apply it after making every reasonable

effort to do so.

Period specific effects Cumulative effect at the beginning

of the current period

Apply new accounting policy

as at the beginning of the

earliest period for which

retrospective application is

practicable

Apply new accounting policy

prospectively from the earliest

date practicable and adjust the

comparative information


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Changes in Accounting Policies: Disclosures

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When initial application of a Standard or anInterpretation has an effect, disclose (contd):

- The amount of the adjustment relating to periods

before those presented, to the extent practicable;

and

- If retrospective application required is

impracticable, the circumstances that led to the

existence of that condition and a description of

how and from when the change has been

applied

Need not repeat these disclosure in subsequent

periods


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Changes in Accounting Policies: Disclosures

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When a voluntary change has an effect, disclose:

- The nature of the change;

- The reasons why applying new accounting policy

provides reliable and more relevant information;

- For current period and each prior period presented, to

the extent practicable, the amount of the adjustment: for each financial statement line item affected;

and

for basic and diluted earnings per share

- The amount of the adjustment relating to periods

before those presented, to the extent practicable; and

- If retrospective application required is impracticable,

the circumstances that led to the existence of that

condition and a description of how and from when the

change has been applied

Need not repeat these disclosure in subsequent periods


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Agenda

21

Objective







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Main Changes from PSAK 25 (1994)

Definition and guidance on certain terms

PSAK 25 (R2009) provides further guidance on the following:

- Material omissions or misstatements.

- Impracticability

concept relevant in making retrospective restatements

- Elimination of fundamental errors concept.

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Errors

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Prior period errors: Omission from, and misstatements

in, the financial statements for one or more prior

periods arising from a failure to use, or misuse of,

reliable information that:

- available when financial statements for thoseperiods were authorised for issue; and

- reasonably expected to have been obtained and

taken into account in the preparation and

presentation of those financial statements

Such errors include the effects of mathematical

mistakes in applying accounting policies, oversights or

misinterpretations of facts, and fraud


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Correction of Material Prior Period Errors

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Correct material prior period errors retrospectively in

the first set of financial statements authorised for issue

after discovery by:

- restating the comparative amounts for the priorperiod presented in which the error occurred; or

- if the error occurred before the earliest prior

period presented, restating the opening

balances of assets, liabilities and equity for the

earliest prior period presented


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Case Example 2

Upon investigation, the new Chief Financial Officer of

PT Pialang Kece discovered that the entity had not

depreciated its equipment since purchase 3 years ago

(2006). The entity presents current year (2009) and the prioryear (2008) on the financial statements.

Should this have been classified as an error, and if so, how

would be the error have been accounted for?

What would the outcome have been?

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Case Example 2

Answer

The error should be accounted for retrospectively, by either:

Restating comparative amounts for the prior period(s) in which the error

occurred, or

If the error occurred before the earliest prior period presented, restatingthe opening balance of retained earnings for the earliest prior period

presented.

This ensures the financial statements are presented as if the error have

never occurred.

Due to the fact that the error occurred before the earliest period presented

(the error occurred in 2006, which is before the earliest period presented

2008), the opening balance of retained earnings for the earliest period

presented (2008) should be restated.

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Correction of Material Prior Period Errors

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Impracticable

Period specific effects Cumulative effect at the beginning

of the current period

Restate the opening balances of

assets and liabilities and equity for

the earliest period for which

retrospective restatement is

practicable

Restate comparative informationto correct the error prospectively

from the earliest date practicable


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Disclosure of Prior Period Errors

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The nature of the prior period error:

- For each prior period presented, to the extent

practicable, the amount of the correction:

for each financial statement line item

affected; and for basic and diluted earnings per share

- The amount of the correction at the beginning of

the earliest prior period presented; and

- If retrospective restatement is impracticable, the

circumstances that led to the existence of that

condition and a description of how and from

when the error has been corrected

Need not repeat these disclosures in subsequent

periods


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Effective date

Effective for financial statements for periods beginningon or after 1January 2011.

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Questions & Answers

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Basar Alhuenius

[email protected] [email protected]


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