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Lecture Documents Accounting - ETAP Financial Accounting Standards
Intro To Accounting (AC 210)
University of Alabama
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ETAP FINANCIAL ACCOUNTING STANDARDS
Financial Accounting Standards (SAK) is a framework in the procedure for making financial statements in order to occur uniformity in the presentation of financial statements. The Financial Accounting Standard (SAK) is the result of the formulation of the Indonesian Accounting Principles Committee in 1994 replacing the Indonesian Accounting Principles in 1984. SAK in Indonesia is applied from several existing accounting standards such as, IAS, IFRS, ETAP, GAAP. As is known, the current PSAK that is applied by each entity presenting financial statements is a general PSAK. Therefore, the entity without public accountability that is currently implementing the general PSAK and intends to later implement PSAK ETAP, in 2011 must make changes to its accounting policy. As for companies with public accountability, there is no need to make any adjustments, because these entities only continue, until finally later in 2012 implementing the general PSAK that has converged with IFRS (Basir, Syarief, 2010). SAK ETAP is a financial accounting standard for entities without public accountability. For example, small and Medium Enterprises (SMEs), cooperatives, rural banks (BPR). SAK ETAP issued in 2009 is effective January 1, 2011 and can be applied earlier than January 1, 2010. Applied retrospectively, if not practically permitted prospectively. Prospects are: 1. Recognize all assets and liabilities in accordance with SAK ETAP; 2. Not recognize assets and liabilities if not permitted by SAK ETAP; 3. Reclassify posts that previously used the old PSAK into Postal Posts according to SAK ETAP; 4. Implement measurement of assets and liabilities
recognized in accordance with SAK ETAP. The transitional provisions of SAK ETAP are : 1. ETAP can choose to continue using PSAK-IFRS or use SAK ETAP; 2. All entities up to December 31, 2009 use one PSAK, namely PSAK in force as of December 31, 2009; 3. ETAP who still choose to use PSAK-IFRS can not be changed in the future using SAK ETAP. The most important difference is the presence or absence of the concept of capital maintenance. In general, one of the most important is how the capital of the company owner is maintained. Therefore, the general SAK is designed to be able to present the actual condition of the company for the benefit of company owners, investors and creditors. Unlike the ETAP SAK, because it is a “special " SAK for entities without public accountability, it is not required to present and use the concept of accountable capital maintenance. Therefore, SAK ETAP does not present notes on the financial statements regarding the company's capital and dividends in detail. The next difference is the issue of intangible assets. General SAK recognizes unlimited useful life, while ETAP SAK recognizes only intangible assets that have a limited lifespan. Similarly, for goodwill, SAK generally admits it, while SAK ETAP does not. The recognition is also different, general SAK can use historical cost and revaluation methods, while SAK ETAP only uses historical cost. The general SAK actually takes into account the indication of a reduction in the value of the intangible asset, while the SAK ETAP does not. This difference makes SAK ETAP more simple and applicable for small companies. Not only small companies, large companies that are not required to have public accountability are also allowed to use it, but keep in mind, the simplicity of this presentation ignores
Lecture Documents Accounting - ETAP Financial Accounting Standards
Course: Intro To Accounting (AC 210)
University: University of Alabama
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Students also viewed
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