Comparison of GAAP (Indonesian) and IFRS
| SUBJECT | IFRS | INDONESIAN GAAP | |
| Accounting framework | |||
| Historical cost | Uses historical cost, but intangible assets, property plant and equipment (PPE) and investment properti may be revaluated. Derivatives, biological assets and most securities must be revaluated | Similar to IFRS. Howefer, revaluations are more restricted to certain items such as PPE, derivatives and certainly typer of investments in securities. Presently there is no specifict recquirement to revalue biological assets. | |
| Fair presentation over ride | In extremely rare cases, entities should over ride the standards where essential to give a fair presentation. | Not exlicity mentioned in the GAAP. However over ride of standarts in possible altough rarely excercised | |
| First-time adoption of accounting frameworks | Requires full retrospective application of all IFRS efective at the reporting date for an entity's first IFRS financial statements with some exemptions and limited mandatory exemptions. | No specific guidance on the first-time adoption of accounting framework. However, most standarts require retrospective application. | |
| Financial statements | |||
| Components of financial statements | Two years' balance sheet, income statements, cash flow statements, changes in equity and accounting policies abd notes. | Similar to IFRS. | |
| Balance sheet | Does not precribe a particular format; an entity uses a liquidity presentation of assets and kiabilities, instead of a current/non-current presentation, only when a liquidity presentation provides more relevant and relible information. Certain items must be presented on the face of the balace sheet. | Requires current/non-current presentation except for certain industries such banking. Less comprehensive list of items to be presented on the face of the balance sheet. | |
| Income Statement | Does not prescribe a standard format, altough expenditure must be presented in one of two formats (fungtion of nature). Certain items must be presented on the face of the income statement. | Similar to IFRS. However, there are differences in details of items to be presented on the face of the income statement. | |
| Exceptional items | Does not use the term, but requires separate disclosure of the items that are such size, incidence or nature that require separate disclosure to explain the performance of the entity. | Similar to IFRS. | |
| Extraordinary items | Prohibited. | Extraordinary items still need to be reported when meeting the definition. Definition of extraordinary item is similar to US GAAP (Defined as being both infrequent and unusual, and rare. Negative goodwill is presented as an extraordinary item). | |
| Statement of recognized gains and looses/other comprehensive income | Present the statement of recognized gains and looses as either innotes or highligtht separately in primary statement of changes in shareholder equity. | Recognized gains and losses are presented within the primary statement of changes in shareholder equity. | |
| Statement of changes in shareholders; equity | Statements showing capital transaction with owners, the movement in accumulated profit and a reconciliation of all other components of equity. The statement must be presented as primary statement | Similar to nIFRS | |
| Cash flow statements-format and methode | Standard headings, but limited flexibility of contents. Use direct or indirect method. | Similar to IFRS. Listed entities are required to use direct method. | |
| Cash flow statements-definition of cash and cash equivalents | Cash includes overdrafts and cash equivalents with short-term maturities (less than 3 monts) | Similar to IFRS | |
| Cash flow statements-exemptions | No exemtions | Similar to IFRS | |
| Changes in accounting polices | Restate comparatives and prior-year opening retained earnings. | Similar to IFRS | |
| Correction of errors | Restate comparatives. | Similar to IFRS. | |
| Changes in accounting estimates | Reported in income statement in the current period. | Similar to IFRS. | |
| Consolidated financial statements | |||
| Definition of subsidiary | Based on voting control or power to govern. The existence of currently exercisable potential voting rights also needs to be taken into consideration. | Definition is similar to IFRS. However, no explicit requirement to consider currently exercisable potential voting rights. | |
| Special purpose entities (SPEs) | Consolidate where the substance of the relationship of indicates control. | Similar to IFRS. | |
| Non-consolidation of subsidiaries | Dissimilar activities or temporary control are not a justification for non-consolidation. | Subsidiaries are not consolidated if control is temporary (short term) or if there are long-term restrictions to transfer funds to the parent. Dissimilar activities are not a justification for non-consolidation. | |
| Definition of associate | Based on significant influence: presumed if 20% interest or participation in entity's affairs. | Similar to IFRS | |
| Presentation of associate results | Use equity method. Show share of post-tax result | Does notspecifically require showing share of post-tax result. | |
| Disclosure about significant associates | Give detailed information on significant associates' assets, liabilities, revenue and results. | Less disclosure compared to IFRS. Information on significant associates' asset, liabilities, revenue and results not required. | |
| Presentation of joint ventures | Both of proportional consolidation and equity method permitted. | Current guidance only covers Jointly Controlled Operations and Jointly Controlled Assets and is comparable to IFRS. However, for Jointly Controlled Entity, IFRS approach is acceptable | |
