Accounting service

Financial reports that are accurate and available when in need are an absolute requirement for a well-managed business. Financial statements are not just a balance sheet and income statement but a story about the company and explanations related to company activities. A company that looking for external financing must be ready to comply with financial accounting standards so the business performance can easily evaluated by investors in the funding process.

TGS Indonesia Accounting service

Our team is experienced in preparing financial reports for preparation for go-public, external audits by the big five audit firm to obtain loans from banks or other financial institutions, including to raise funding from potential investors or corporate buyers. Whether the financial statements using generally accepted accounting standards (PSAK), SME SFAS (PSAK EMKM), SAK ETAP, or sharia, our team can help clients to prepare their financial reports.

 

The Advantage of TGS Global Network

By using our accounting services, it means that you are connected to the TGS Global network. It means opening up access to new customers and potential funding sources from abroad. 

 

Our Experience with Accounting Service and Accounting Advisory

We are also experienced in assisting companies to create accounting information systems, the application of new SAKs or the convergence of IFRS and accounting analysis for transactions.

 

Our Practice Principle

We invest in our personnel accounting skills training activities so that they can always provide quality accounting services. In our accounting services, we apply a digital work system, which allows every job to go through a good quality control process.

Every work is unique, and every client is a partner to us. At TGS AU Partners, KAP Agus Ubaidillah dan Rekan, we create a mutually supportive work environment that becomes a place for individuals who are fully enthusiastic to give their best for every job.

 

Case Study

Perusahaan Pembangkit Listrik

The implementation of PSAK 71, 72 and 73 in Power Electricity Companies

In the 2020 financial year, there are significant PSAK implementation obligations, including PSAK 71 (Financial Instruments), PSAK 72 (Income from Customers), and PSAK 73 (Leases). PT Pembangkitan Jawa Bali is a PLN subsidiary that uses PSAK in preparing its financial statements, so the analysis is needed for the application of the new PSAK and how to apply it to existing transactions at PT PJB.

TGS AU Partners, KAP Agus Ubaidillah & Rekan (TGS Indonesia) assisted PT PJB's accounting team in identifying transactions, accounting areas affected by PSAK 71, PSAK 72 and PSAK 73. Analyzing various PT PJB with its customers, namely PT PLN, analyzing financial assets, namely deposits relating to PSAK 71, analyzing lease contracts, namely related to PSAK 73.

We help provide workshop training and materials, also prepare work instructions for implementing PSAK 71, 72, and 73. PT PJB as a state-owned enterprise has business activities as a power plant that supplies electricity to PLN, there are various contract schemes between PJB and PLN for various generator locations in Indonesia, which may have the impact of recognizing different revenues for each type.

After the identification of contracts, performance obligations to customers, flows of providing services/products to customers, value, and fulfillment of obligations, we provide instructions regarding revenue recognition for each type of contract, some of which differ from previous accounting treatments. With the changes in the PSAK, there is a potential impact on the income figures in the income statement, so that if the PSAK application analysis is not carried out or GAP analysis the impact may not be identified and the company cannot prepare the adjustments that must be made. As a result, if so, it can have a serious impact on the company's management performance. PSAK 71: Financial Accounting Standards Board has adopted PSAK 71 "Financial Instruments" which effectively replaces PSAK 55 "Financial Instruments: Recognition and Measurement".

 

PSAK 71

PSAK 71 determines the classification, measurement, and derecognition of financial assets and liabilities introduces new rules for hedge accounting and new impairment models for financial assets. PSAK 71 takes effect from January 1, 2020, where early adoption is permitted. Apart from hedge accounting, the implementation of this standard should be done retrospectively without requiring the restatement of comparative information. Regarding impairment for financial assets owned by a company, the impairment model in PSAK 71 requires the recognition of an allowance for impairment based on the estimated loan loss compared to the actual credit loss in PSAK 55. This applies to financial assets classified as amortization expense, debt instruments measured at fair value through other comprehensive income, asset contracts in PSAK 72 "Income from Customer Contracts", lease receivables, loan commitments, and certain financial guarantee contracts.

PSAK 72: is a new standard that provides a comprehensive framework related to determining how revenue should be recognized, the timing of revenue recognition, and the amount that should be recognized by companies. This standard introduces a single model used in recording revenue with customers, called the five-step model (Identify Contracts with Customers, Identify Implementation Obligations, Determine Transaction Prices, Allocate Transaction Prices, and Recognize Revenues), which must be implemented in all contracts with customers. This standard also introduces several new concepts such as accounting treatment related to contract modification and capitalization of costs related to contracts with customers. PSAK 72 effectively replaces all current standards with regard to income; namely PSAK 23 "Revenue", PSAK 34 "Construction Contracts", PSAK 44 "Accounting for Real Estate Development Activities", and ISAK 10 "Customer Loyalty Programs".

 

PSAK 72

PSAK 72 will be effective starting January 1, 2020 with early application permitted. There are two alternative methods that can be used by companies in the transition process to PSAK 72. The first method, this standard is allowed retrospectively on contracts with customers that exist in each period presented in the financial statements. The second method, companies are allowed to use a retrospective modified method where PSAK.72 will only be applied to transactions after January 1, 2020 with the cumulative impact on initial application being recorded as an adjustment to the opening retained earnings (for other components of equity, as appropriate) on January 1. 2020.

 

PSAK 73

PSAK 73: provides a comprehensive model for identifying lease contracts and the accounting treatment of lease transactions as lessees or lessors. PSAK 73 emphasizes the importance of control in the identification of lease contracts the factors that differentiate a lease contract and a service contract depend on which party has control over the identification of the asset. If the customer has control over the identification of assets, the contract meets the definition of a lease in PSAK 73. PSAK 73 effectively replaces several standards and interpretations, namely: PSAK 30 "Leases", ISAK 8 "Determination of whether an agreement contains a lease", ISAK 23 "Incentive leases Operations ", ISAK 24" Evaluation of the Substance of Multiple Transactions Involving a Legal Form of Lease ", and ISAK 25" Land Rights ". PSAK 73 is effective from January 1, 2020. Early adoption of PSAK 73 is permitted since the company applies PSAK 72 "Revenue from Contracts with Customers" on or before the initial adoption date of PSAK 73.

The implementation of PSAK 73 will affect almost all leases recognized in the statement of financial position, where this standard eliminates the distinction between operating and financing leases. Operating lease costs under PSAK 73, will be capitalized as an asset (or right to use for leased goods) and a financial liability that reflects future lease payment commitments after considering the impact of discounts and practical guidance to be used by the company. The only exceptions to this treatment are short-term leases and low-value assets. Lessees are required to recognize and present separately the interest costs arising from the lease obligation and the depreciation cost for the lease rights.