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Accounting and accounting rules in Indonesia

Accounting Rules

Tax Year
Calendar year. Companies may opt to file returns according to the accounting year.
Accounting Standards
Accounting standards (Standar Akuntansi Keuangan – SAK) are established by the Indonesian Financial Accounting Standards Board and converge to some extent with IFRS Standards. On 25 May 2016, the Indonesian Institute of Accountants announced its intention to deepen cooperation with IFRS as Indonesia plans to achieve full convergence with IFRS Standards.
Accounting Regulation Bodies
Bank Indonesia

Accounting Reports
The balance sheet is presented into accounts with liabilities composed of constant capital and debts. The profit and loss account gives priority to the repository of the global production and lets the choice of the cost classification either by nature or by function.

For tax purposes, foreign investment (PMA) companies, permanent establishments, certain entities with foreign affiliations and companies that prepare their financial statements using US dollars as the functional currency may maintain English language and US dollar bookkeeping, provided approval from the Ministry of Finance is obtained .

Publication Requirements
Financial statements must contain at least: a variation sheet of constant capital excluding the reserve account and balance carried forward, a cash flow sheet and the annexes.
The statements of the activity during the financial year include the balance sheet, the statement of assets and liabilities, the intermediate balance, the statement of source and application of funds and an additional information statement. They are inseparable from each other. Accounts should be published annually.

Five types of limited liability companies (banks and financial institutions, publicly listed companies, companies issuing debt, state-owned companies and companies with assets of at least IDR 50 billion) must publish audited financial statements that have been approved by the general meeting of shareholders. Annual reports should be prepared in accordance with generally accepted accounting principles in Indonesia. 

Professional Accountancy Bodies
Certification and Auditing
The "Indonesian Institute of Accountants" represents the profession of accountant. The Department of Finance has the authority to issue recommendations and establish obligations for accounting.
Accounting News

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Latest Update: July 2024