New Guidelines for Community Credit Banks Financial Accounting

Bank Indonesia recently issued Circular Letter No. 12/14/DKBU/2010 on Implementing the Guidelines on Community Credit Banks Accounting (“Circular”) as a means to facilitate the implementation of the financial accounting standard that Community Credit Banks must employ. This standard is commonly known as the ‘Financial Accounting Standard for Non-Publically Accountable Entities’ (Standar Akuntansi Keuangan Entitas Tanpa Akuntabilitas Public / SAK ETAP). The Circular essentially obligates all Community Credit Banks to utilize the Guidelines on Community Credit Banks Accounting (“Guidelines”) when formulating and presenting their financial reports.

The Guidelines serve as an implementing instrument of the SAK ETAP, comprising further details on how to implement the SAK ETAP, and consist of guidance for Community Credit Banks on financial reporting. The Guidelines, however, are not provided under this Circular.

The mandate for Community Credit Banks to use the Guidelines also applies to any financial accounting documents that were formulated since 1 January 2010, and employ the previous guidelines, the 2001 Guidelines on Indonesian Banking Accounting (Pedoman Akuntansi Perbankan Indonesia 2001).