Audit & Accounting

PSAK 118 (IFRS 18) introduces significant changes in the presentation of the statement of profit or loss in a more structured and transparent way. The standard improves comparability and the quality of information for investors and stakeholders. Key changes include classification of income and expenses and more consistent subtotals. Its implementation affects how companies communicate … Read more

PSAK 118 is an accounting standard designed to enhance the quality, transparency, and comparability of financial statements through a more structured presentation and disclosure framework. The standard requires classification of income and expenses into operating, investing, financing, tax, and discontinued operations categories, along with consistent presentation of key performance subtotals. It also strengthens aggregation and … Read more

PSAK 118, effective 1 January 2027, replaces PSAK 201 and restructures financial statement presentation. It classifies income and expenses into operating, investing, financing, tax, and discontinued operations categories. The standard requires consistent subtotals to improve comparability across entities. It also introduces Management-Defined Performance Measures (MPM) disclosures for transparency. Its implementation affects all industries, including investment … Read more

The evolution of financial reporting in the Indonesian insurance industry continues with the introduction of PSAK 118 (IFRS 18), effective from 1 January 2027 as a new standard on financial statement presentation and disclosure. Unlike PSAK 117, which focuses on insurance contract measurement, PSAK 118 emphasizes how financial performance is presented and communicated to users … Read more

The implementation of PSAK 118 (IFRS 18 adoption) introduces a significant transformation in financial reporting architecture that goes beyond technical requirements, fundamentally influencing how corporate performance is communicated to stakeholders. For complex organizations such as state-owned enterprises and large business groups, the standard creates challenges in classifying operating, investing, and financing activities, as well as … Read more

Financial statements under Indonesian Company Law (UUPT) function not only as regulatory compliance tools but also as key instruments of corporate accountability and transparency. They are prepared based on proper bookkeeping and presented in the annual report submitted by directors to shareholders through the General Meeting (RUPS). The law emphasizes collective responsibility through mandatory signatures … Read more

Financial statements in tax regulation function not only as compliance tools but also as strategic instruments for achieving tax efficiency and ensuring accurate tax obligations. They serve multiple roles, including providing financial information, supporting decision-making, ensuring accountability, evaluating performance, and guiding future planning. In Indonesia, proper bookkeeping is a mandatory requirement under tax law, applying to both … Read more

Government Regulation No. 43 of 2025 introduces a fundamental transformation in Indonesia’s financial reporting system, emphasizing standardization, integration, and stronger accountability. The regulation establishes a centralized reporting platform (PBPK), ensuring a single, consistent version of financial data for all regulators. It also shifts the authority of accounting standard-setting from professional bodies to a state-controlled committee, reflecting a … Read more

Financial statements for listed companies represent a critical instrument of transparency and accountability in the capital market. Governed by Financial Accounting Standards (SAK) and Regulation VIII.G.7, these reports must ensure both technical accuracy and comprehensive disclosure for investors and regulators. Issuers and public entities, defined by their public ownership and capital structure, are required to present complete financial statements, … Read more

Financial statements within annual reports have evolved from mere administrative requirements into essential instruments of corporate transparency and governance under Indonesia’s latest regulation, Permenkum No. 49 of 2025. Companies are now required to present comprehensive annual reports, including financial statements and non-financial disclosures, within strict timelines and through digital systems. These reports serve not only as compliance tools but … Read more