JAKARTA. Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia/IAI) issues guidelines that can be used as a reference by the business entity, in drafting financial statements in the midst of Corona Virus Disease 2019 (Covid-19) Pandemic. These guidelines are issued to ensure that entities can maintain consistency in the application of Financial Accounting Standards (Standar Akuntasi Keuangan/SAK).
According to the IAI, there are at least a number of applications of Indonesian Financial Accounting Standards (Pernyataan Standar Akuntasi Keuangan/PSAK) that must be considered, during the pandemic era.
IAI argued, Covid-19 could not be the basis of events that require business entities to make adjustments to the 2019 financial statements. Considering, the spread of Covid-19 in Indonesia has only been announced on 2 March 2020 and it was not an information that may affect the presentation of 2019 financial statements
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Secondly, the application of PSAK 71 on financial Instruments paragraph 5.5.17 (c) which regulated the calculation of Expected Credit Loss (Kerugian Kredit Ekspektasian/KKE). According to the IAI, Covid-19 can not be used as the basis by the business entities to measure KKE.
As for KKE is a method used in calculating the losses in financial instruments, which are forward-looking. The method introduced by PSAK 71 requires that at each reporting date, an entity assesses whether credit risk on financial instruments has increased significantly since initial recognition using forward looking, reasonable and supportable information.
The third guideline is still related to the application of PSAK 71, but specifically in measuring the allowance of KKE over lifetime for 2020. The requirement for applying the allowance for KKE over lifetime is if there is a significant increase in credit risk (PSRK).
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However, IAI believes that the spread of the Covid-19 outbreak, which was addressed by the government and authorities by providing credit payment relaxation, cannot be considered as PSRK. Although, in reality there has been a restructuring, debtors whose businesses have been significantly affected by the Covid-19 pandemic recovered during the Covid-19 pandemic crisis because of the relaxation policies of authorities and government. (ASP/KEN)
