Implementation of financial accounting standards allows management or company owners to have precise and consistent financial information. For investors, companies that implement financial accounting standards will facilitate the process of financial analysis and business valuation.
By using the same accounting standards as competitors in the market, it will produce consistent financial information between the company and other companies. The benefit is that companies can compare their financial position and performance with competitors or industry averages.
If the company is oriented to obtain funding from international investors or credit, then applying international financial accounting standards (IFRS) is a requirement that must be met. Without the application of IFRS, financial information requires adjustments to be compared with other companies that apply IFRS. Financial reports prepared with the IFRS make the process of financial analysis and valuation easier for investors.
Financial Accounting Standards in Indonesia
The Financial Accounting Standards in Indonesia is adopting the IFRS. Standard changes are made continuously to comply with IFRS. In Indonesia, there are several types of financial accounting standards for private entities including:
General Financial Accounting Standards (Adopted IFRS),
Financial Accounting Standards for Entities Without Public Accountability (SAK ETAP), and
Financial Accounting Standards for Micro, Small and Medium Entities (SAK EMKM).
The development of sharia finance (Islamic Sharia Finance) such as sharia banking services and other sharia-based financial services has caused the financial accounting standard board in Indonesia to release Sharia Financial Accounting Standards.
Scope of Services for PSAK and IFRS
The TGS AU Partners team has expertise and experience related to the implementation of PSAK and IFRS. Some of the accounting services related to financial accounting standards that we perform for companies include:
GAP analysis, existing accounting policies with financial accounting standards that must be applied
Consultation regarding the impact of changes in financial accounting standards, including on business and legal operations
Implementation of new financial accounting standards
Preparation of accounting policies and accounting guidelines
Make the required accounting calculation working papers