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Financial Record-Keeping Requirements in Indonesia Get an Overhaul: What You Need to Know

In a bid to improve transparency and consistency, Indonesia has recently introduced significant changes to its financial accounting standards. Accounting and audit professionals are advised to take note of the revisions as they impact the way companies report their financial performance.

New Standards Align with International Best Practices

The Indonesian Financial Accounting Standards (IFAS) have been revised to bring them in line with international best practices. The new standards aim to provide a clearer picture of a company’s financial situation, making it easier for investors and stakeholders to make informed decisions.

Key Changes: New Guidelines on Financial Record-Keeping Requirements

One of the key changes is the introduction of new guidelines on financial record-keeping requirements. Companies are now required to maintain accurate and comprehensive records of their financial transactions, including:

  • Cash flows
  • Assets
  • Liabilities
  • Equity

Summary of Similarities and Differences between IFRS and IFAS

In addition to the revised IFAS standards, the Indonesian government has also introduced a summary of similarities and differences between International Financial Reporting Standards (IFRS) and IFAS. This guide is designed to help companies navigate the complexities of reporting under both frameworks.

Deloitte Publication: A Valuable Resource for Accounting and Audit Professionals

The publication, prepared by Deloitte, provides a comprehensive overview of the changes to the IFAS standards, including:

  • Breakdown of new requirements for financial record-keeping
  • Key differences between IFRS and IFAS
  • Other financial reporting matters that companies should be aware of

Recommendations

For accounting and audit professionals, this publication serves as a valuable resource in staying up-to-date with the latest changes to Indonesia’s financial reporting landscape. With these revised standards comes an increased emphasis on transparency and accuracy, making it essential for companies to ensure their financial records are accurate and compliant with the new requirements.

  • Take note of the revised IFAS standards and update your financial record-keeping procedures accordingly.
  • Familiarize yourself with the new guidelines on cash flow reporting and ensure accurate records are maintained.
  • Review your company’s financial reports under both IFRS and IFAS frameworks to identify potential differences.
  • Stay informed about future changes to Indonesia’s financial accounting standards to maintain compliance and avoid penalties.

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