International Financial Reporting Standards (IFRS) are Standards, Interpretations and the Framework adopted by the International Accounting Standards Board (IASB). It is the standard that is globally used all around the world, the purpose of this standard is so people would have no more problem in interpreting the financial reports as they are all following the same standard.
By having PSAK converging to IFRS The developments may have different impacts on different companies. Domestic companies which do not have any IFRS reporting obligation (“domestic reporters”) will generally apply new PSAKs as they become effective. For them, the key challenges are to have a clear plan on how to deal with the business, financial and human capital implications arising from the implementation of so many PSAK and to execute the plan on a timely basis. Domestic companies that are listed in the United States of America (US) have the option to file a full-blown set of IFRS based financial statements instead of filing PSAK based financial statements that include additional disclosures regarding the reconciliation between PSAK and the US GAAP.
|Subject |IFRS |Indonesian GAAP |US GAAP |
|Fair Presentation Override |In extremely rare cases, entities |Not explicitly mentioned in the |Conceptually similar to IFRS, but |
| |should be override the standards |GAAP. However, override standards |no used in practice. |
| |where essential to give a fair |is possible although rarely | |
| |presentation |exercised. | |
|First Time Adoption of Accounting... [continues]
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