Capital Market: Converging the PSAK Financial Statement with IFRS version

Pirhot Nababan

On 25 June 2012, the Chairman of the Indonesia Capital Market and Financial Institutions Supervisory Agency (“Bapepam-LK”) issued Decree No. KEP-347/BL/2012 on Issuers’ and Publicly Listed Companies’ Financial Statement Presentation and Disclosure (“Decree”). The Decree aims to converge the current Financial Accounting Standards Statement (Pernyataan Standar Akuntansi Keuangan – PSAK) used by Issuers in order to adapt to the International Financial Reporting Standards (“IFRS”).

It is assumed, that the Decree issuance is closely related to the Government’s plan to increase trade in the stock market by IDR 500 billion per day, by converging three Indonesian time zones (WIB, WITA, WIT) at the end of this year. The Decree serves to assure legal certainty to Issuers and Publicly Listed Companies in creating financial statement presentation and disclosure.