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Bank Indonesia Financial Accounting Policies (KAKBI)
Komite Penyusun KAKBI
Komite Penyusun KAKBI STATEMENT OF FINANCIAL ACCOUNTING POLICY - - PDF document
Komite Penyusun KAKBI STATEMENT OF FINANCIAL ACCOUNTING POLICY - - PDF document
Bank Indonesia Financial Accounting Policies (KAKBI) Komite Penyusun KAKBI STATEMENT OF FINANCIAL ACCOUNTING POLICY NUMBER 02 PRESENTATION OF FINANCIAL STATEMENTS FOREWORD The Steering Board of the Bank Indonesia Financial Accounting
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FOREWORD The Steering Board of the Bank Indonesia Financial Accounting Policies Preparatory Committee (“KAKBI Committee”) approved and adopted the Statement of Financial Accounting Policy No. 02 at its meeting on 20 December 2013. Jakarta, 20 December 2013 KAKBI Committee Steering Board Rosita Uli Sinaga Chair Mubarakah Deputy Chair Hendar Member Ahmad Hidayat Member Sidharta Utama Member Slamet Sugiri Member Chaerul Djakman Member Jan Hoesada Member Amir Abadi Jusuf Member Kusumaningsih Angkawijaya Member Dwi Martani Member
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TABLE OF CONTENTS
INTRODUCTION ........................................................................................ 01-05 Objective ............................................................................................................. 01 Scope ............................................................................................................. 02-04 Definitions .......................................................................................................... 05 FINANCIAL STATEMENTS ......................................................................... 06-34 Purpose of the Financial Statements ................................................................... 06 Components of Complete Set of Financial Statements .................................... 07-08 Responsibility for Financial Statements .............................................................. 09 General Characteristics ................................................................................. 10-34 Fair Presentation and Compliance with PKAK ............................................. 10-15 Accrual Basis ............................................................................................. 16-17 Materiality and Aggregation ........................................................................ 18-20 Offsetting .................................................................................................... 21-24 Reporting Frequency ........................................................................................ 25 Comparative Information ............................................................................ 26-32 Consistency of Presentation ........................................................................ 33-34 STRUCTURE AND CONTENT ..................................................................... 35-82 Introduction ................................................................................................... 35-36 Identification of Financial Statements ............................................................ 37-41 Statement of Financial Position ...................................................................... 42-49 Information to be presented in the Statement of Financial Position ............ 42-47 Information to be presented in the Statement of Financial Position or the Notes to Financial Statements .............................................................................. 48-49 Statement of Surplus Deficit .......................................................................... 50-58 Information to be presented in the Statement of Surplus Deficit ................. 50-57 Information to be presented in the Statement of Surplus Deficit or Notes to Financial Statements ....................................................................................... 58 Notes to Financial Statements ....................................................................... 59-82 Structure .................................................................................................... 59-63 Disclosure of Accounting Policies ................................................................ 64-71 Paragraph
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Sources of Estimation Uncertainty that Affects Carrying Value ................... 72-80 Revaluation Reserves, Capital, Surplus and Accumulated Deficit .................... 81 Other Disclosures ............................................................................................ 82 TRANSITIONAL PROVISIONS ......................................................................... 83 EFFECTIVE DATE .......................................................................................... 84
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.1
- Bank Indonesia Financial Accounting Policies Committee
STATEMENT OF FINANCIAL ACCOUNTING POLICY NUMBER 02
1 2
Presentation of Financial Statements
3 4
Statement of Financial Accounting Policy (PKAK) 02 consists of
5
paragraphs 1-84. All of the paragraphs in this Statement are equally
6
- binding. The paragraphs that are printed in bold type and italics set
7
- ut the main principles. PKAK 02 must be read in the context of
8
regulation objectives and in conjunction with the Fundamental
9
Principles for the Preparation and Presentation of Bank Indonesia
10
Financial Statements. PKAK 01: Accounting Policies describes the
11
basis for the selection and application of accounting policies if no
12
specific PKAK is applicable. It is not mandatory for this Statement to
13
be applied to elements that are not material.
14 15
INTRODUCTION
16 17
Objective
18 19
- 01. The objective of this Statement is intended to govern the basis for
20
the presentation of general purpose financial statements of Bank Indonesia,
21
hereinafter referred to as “the financial statements,” so ensure comparability
22
with the entity's financial statements of previous periods. It sets out overall
23
requirements for the presentation of financial statements, guidelines for their
24
structure and minimum requirements for their content.
25 26
Scope
27 28
- 02. Bank Indonesia shall apply this Statement in preparing and
29
presenting general purpose financial statements in accordance with
30
the PKAK.
31 32
- 03. Other PKAKs set out the recognition, measurement and disclosure
33
for specific transactions and other events.
34 35
- 04. Should Bank Indonesia prepare interim financial statements, full
36
- r condensed interim financial statements may be presented. This Statement
37
does not apply to the structure and content of condensed interim financial
38
statements, which are prepared in accordance with the GAS on Interim
39
Financial Statements, having regard to PKAK 07: Non-Unique Transactions.
40
However, paragraphs 10-24 apply to condensed interim financial statements.
41
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.2
- Bank Indonesia Financial Accounting Policies Committee
Definitions
1 2
- 05. The following terms are used in this Statement:
3 4
Accumulated surplus deficit is the surplus / deficit in the current
5
period and prior periods.
6 7
Notes to financial statements. The notes to financial statements
8
contain additional information to that presented in the statement of
9
financial position and statement of surplus deficit. The notes to
10
financial statements provide narrative descriptions of the items
11
presented in the financial statements and information about items
12
that do not qualify for recognition in the financial statements.
13 14
General purpose financial statements (hereinafter referred to as
15
“financial statements”) are financial statements that are intended to
16
meet the needs of most users of the financial statements.
17 18
Interim financial statements are a complete set of financial
19
statements (as governed by this Statement) or condensed financial
20
statements (as governed by the GAS on Interim Financial Statements,
21
having regard to PKAK 07: Non-Unique Transactions) for an interim
22
period.
23 24
Material Omissions or misstatements of items are material if they
25
could, individually or collectively, influence the economic decisions of
26
financial statement users. Materiality depends on the size and nature
27
- f
the
- mission
- r
misstatement judged in the surrounding
28
- circumstances. The size or nature of the items in the financial
29
statements, or a combination of both, could be the determining factor.
30 31
Assessing whether an omission or misstatement could influence the
32
decisions of users of the financial statements, and thus be material, requires
33
a consideration of the characteristics of each user of the financial
34
- statements. Fundamental Principles for the Preparation and Presentation of
35
Bank Indonesia Financial Statements (PDP2LK) state in paragraph 40 that
36
users are assumed to have a reasonable knowledge of the objective of Bank
37
Indonesia and its impact on financial reporting by Bank Indonesia, and to
38
have the ability to study the information in question.
39 40
Capital is the capital of Bank Indonesia as stipulated by the
41
legislation.
42
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.3
- Bank Indonesia Financial Accounting Policies Committee
Statements of Financial Accounting Policy (PKAK) is regulation
1
financial accounting policies, including recognition, measurement,
2
presentation and disclosure for each class of financial transactions
3
and events that affect the financial condition of Bank Indonesia.
4 5
Fundamental Principles for the Preparation and Presentation of
6
Financial Statements (PDP2LK) is a conceptual framework for
7
determining, among other things, the objectives, elements, qualitative
8
characteristics, basic concepts, assumptions, and limitations in the
9
preparation and presentation of Bank Indonesia financial statements,
10
including guidelines for the adoption of generally applicable financial
11
accounting standards.
12 13
Revaluation reserves are the cumulative change in the fair value of the
14
assets and liabilities of Bank Indonesia or the financial effects of
15
Bank Indonesia unique transactions where such transactions have yet
16
to achieve their ultimate objectives.
17 18
The components of revaluation reserves include:
19
(a) gains and losses arising from translating of foreign currency assets
20
and liabilities into rupiah due to exchange rate changes; and
21
(b) gains and losses from changes in the fair value of an asset or liability.
22 23
General accounting standards (GAS) are statements and
24
interpretations issued by the Indonesian Institute of Accountants‟
25
Financial Accounting Standards Board.
26 27
Surplus deficit is income less expenses.
28 29
- Impracticable. Applying a requirement is impracticable when the
30
entity cannot apply it after making every reasonable effort to do so.
31 32
FINANCIAL STATEMENTS
33 34
Purpose of the Financial Statements
35 36
- 06. Bank
Indonesia financial statements are a structured
37
representation of the financial effects of Bank Indonesia policy. The objective
38
- f the financial statements is to demonstrate the achievements of Bank
39
Indonesia, or Bank Indonesia‟s accountability, in achieving and maintaining
40
Rupiah value stability, which includes information on the impact of Bank
41
Indonesia‟s policies on the financial position and surplus deficit of Bank
42
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.4
- Bank Indonesia Financial Accounting Policies Committee
- Indonesia. In order to fulfil this purpose, the financial statements provide
1
information about Bank Indonesia that includes:
2
(a) assets;
3
(b) liabilities; and
4
(c) income and expenses, including gains and losses.
5 6
This information, along with other information contained in the notes to
7
financial statements, assists users of the financial statements in
8
understanding the financial position and surplus deficit of Bank Indonesia.
9 10
Components of Complete Set of Financial Statements
11 12
- 07. BI presents a complete set of financial statements consisting
13
- f the following components:
14
(a) a statement of financial position as at the end of the period;
15
(b) a statement of surplus deficit for the period; and
16
(c) notes to financial statements, comprising a summary of
17
significant accounting policies and
- ther
explanatory
18
information.
19 20
- 08. Apart from the financial statements, Bank Indonesia may also
21
present other information that will be useful to users in understanding the
22
Bank's financial statements, such as a weekly condensed statement of
23
financial position. The presentation of such other information is outside the
24
scope of the PKAK.
25 26
Responsibility for Financial Statements
27 28
- 09. The Board of Governors of Bank Indonesia is responsible for the
29
preparation and presentation of the financial statements of Bank Indonesia.
30 31
General Characteristics
32 33
Fair Presentation and Compliance with PKAK
34 35
- 10. The financial statements shall present fairly the financial
36
position and surplus deficit of Bank Indonesia. Fair presentation
37
requires the faithful presentation of the effects of transactions, other
38
events and conditions in accordance with the definitions and
39
recognition criteria for assets, liabilities, income and expenses set out
40
in Fundamental Principles for the Preparation and Presentation of
41
Bank Indonesia Financial Statements (PDP2LK). The application of
42
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
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- Bank Indonesia Financial Accounting Policies Committee
PKAKs, with additional disclosure when necessary, is presumed to
1
result in financial statements that achieve a fair presentation.
2 3
- 11. Compliance with the PKAK in the preparation of the
4
financial statements is stated explicitly and without exception in the
5
notes to financial statements. Bank Indonesia shall not describe the
6
financial statements have been prepared in accordance with the PKAK
7
unless they comply with all the requirements of the PKAK.
8 9
- 12. In virtually all circumstances, Bank Indonesia achieves fair
10
presentation of the financial statements in compliance with the relevant
11
- PKAK. Fair presentation also requires Bank Indonesia to:
12
(a) select and apply accounting policies in accordance with PKAK 01:
13
Accounting Policies. PKAK 01 sets out a hierarchy of authoritative
14
references to be considered by Bank Indonesia in the absence of a
15
PKAK that specifically applies to an item.
16
(b) present information, including accounting policies, in a manner that
17
provides relevant, reliable, comparable and understandable
18
information.
19
(c) provide additional disclosures when compliance with the specific
20
requirements of the PKAK are insufficient to enable users of the
21
financial statements to understand the effects of transactions, other
22
events and conditions on the financial position and surplus deficit of
23
Bank Indonesia.
24 25
- 13. Bank Indonesia cannot rectify inappropriate accounting
26
policies either by disclosure of the accounting policies used or by
27
disclosure in the notes to financial statements, or explanatory
28
material.
29
- 14. In the extremely rare circumstances, when Bank Indonesia
30
concludes that compliance with a requirement in PKAK would be so
31
misleading that it would conflict with the objective of financial
32
statements set out in the Fundamental Principles for the Preparation
33
and Presentation of Bank Indonesia Financial Statements (PDP2LK),
34
then Bank Indonesia shall, in so far as possible, act to rectify the
35
incorrect understanding by disclosing:
36
(a) the name of the relevant PKAK, the nature of the departure, and
37
the reason why that treatment would be so misleading in the
38
circumstances that it would conflict with the objective of
39
financial statements set out in the Fundamental Principles for
40
the Preparation and Presentation of Bank Indonesia Financial
41
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.6
- Bank Indonesia Financial Accounting Policies Committee
Statements (PDP2LK); and
1
(b) for each period presented, the adjustments to each item in the
2
financial statements that Bank Indonesia has concluded would
3
be necessary to achieve fair presentation.
4 5
- 15. For the purposes of applying paragraph 14, an item of information
6
would conflict with the objective of financial statements when it does not
7
represent faithfully the transactions, other events and conditions that it
8
either purports to represent or could reasonably be expected to represent
9
and, consequently, it would be likely to influence economic decisions made
10
by users of financial statements. When assessing whether complying with a
11
specific requirement in a PKAK would be so misleading that it would conflict
12
with the objective of the financial statements, as set out in the Fundamental
13
Principles for the Preparation and Presentation of Bank Indonesia Financial
14
Statements (PDP2LK), Bank Indonesia will consider the reasons the purposes
15
- f the financial statements will not be achieved in such circumstances.
16 17
Accrual basis
18 19
- 16. Bank Indonesia prepares its financial statements using
20
accrual basis.
21 22
- 17. As accrual based accounting is used, Bank Indonesia recognises
23
items as assets, liabilities, income, and expenses (the elements of the
24
financial statements) when they satisfy the definition and recognition criteria
25
for those elements in the Fundamental Principles for the Preparation and
26
Presentation of Bank Indonesia Financial Statements (PDP2LK).
27 28
Materiality and Aggregation
29 30
- 18. Bank Indonesia shall present separately each material class
31
- f similar items and sub-items. This is based on Bank Indonesia‟s
32
duties and/or differing characteristics, unless they are immaterial.
33 34
- 19. The financial statements are the result of processing transactions
35
and other events that are classified based on the duties and/or nature of
36
Bank Indonesia. The final stage of the process of aggregation and
37
classification is presentation in the financial statements. If a particular item
38
- r sub-item classification is not material, it may be aggregated with other
39
similar items or sub-items in the financial statements or in the notes to
40
financial statements. An item or sub-item may not be sufficiently material to
41
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.7
- Bank Indonesia Financial Accounting Policies Committee
be presented separately in the financial statements but may be sufficiently
1
material to be presented separately in the notes to financial statements.
2 3
- 20. Bank Indonesia need not provide a specific disclosure required by
4
a PKAK if the information is not material.
5 6
Offsetting
7 8
- 21. Bank Indonesia shall not offset the assets and liabilities or
9
income and expenses, unless required or permitted by a PKAK.
10 11
- 22. Bank Indonesia reports separately both assets and liabilities, and
12
income and expenses. Offsetting in the statement of surplus deficit or
13
statement of financial position reduces the ability of users of the financial
14
statements to better understand the transactions, events, and other
15
conditions that have occurred, and to understand the financial effects of
16
Bank Indonesia policies in the effort to achieve and maintain the stability of
17
Rupiah value, except when offsetting reflects the substance of the
18
transaction or event. Measuring asset net of valuation allowance (i.e.,
19
allowance for doubtful accounts) is not offsetting.
20 21
- 23. Gains recognised in the Bank Indonesia statement of surplus
22
deficit are recorded separately as information on these items is useful in
23
decision-making, except those are not material. Gains are reported in gross
24
amounts, before deducting the relevant expenses, except those are not
25
- material. For example, when Bank Indonesia sells fixed asset and makes a
26
gain from the sale, then the cost of the transaction, if material, is presented
27
separately.
28 29
- 24. Bank Indonesia presents gains and losses arising from groups of
30
similar transactions on a net basis, such as gains and losses on foreign
31
exchange transactions.
32 33
Frequency of Reporting
34 35
- 25. Bank Indonesia shall present a complete set of financial
36
statements (including comparative information) at least annually.
37
When Bank Indonesia changes the end of its reporting period and
38
presents financial statements for a period that is longer or shorter
39
than one year, in addition to the period covered by the financial
40
statements, Bank Indonesia will also disclose:
41
(a) the reason for using a longer or shorter period; and
42
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.8
- Bank Indonesia Financial Accounting Policies Committee
(b) the fact that the amounts presented in the financial statements
1
are not entirely comparable.
2 3
Comparative information
4 5
- 26. Quantitative information is disclosed on a comparative basis
6
with the previous period for all amounts reported in the current
7
period's financial statements, unless otherwise required by the PKAK.
8
Comparative information for narrative and descriptive information in
9
the financial statements of the previous period is disclosed when it is
10
relevant to a proper understanding of the current period‟s financial
11
statements.
12 13
- 27. Bank Indonesia discloses comparative information by presenting
14
at least two statements of financial position, two statements of surplus
15
deficit, and notes to financial statements, including when Bank Indonesia
16
applies accounting policies retrospectively or makes a retrospective
17
restatement of items or sub-items in the financial statements or reclassifies
18
items or sub-items in the financial statements.
19 20
- 28. In some cases, the narrative information presented in the
21
financial statements for the previous period(s) continues to be relevant in the
22
current period. For example, the current period details of a legal dispute
23
whose outcome was uncertain at the end of the immediately preceding
24
reporting period and that is yet to be resolved will need to be disclosed in the
25
current period. Users will benefit from information on such uncertainty at
26
the end of the previous reporting period, and on the steps that have been
27
taken during the period to resolve the uncertainty.
28
- 29. If Bank Indonesia changes the presentation or classification
29
- f items or sub-items in the financial statements, Bank Indonesia shall
30
reclassify comparative amounts unless such reclassification is
31
- impracticable. If Bank Indonesia reclassifies comparative amounts,
32
then Bank Indonesia shall disclose:
33
(a) the nature of the reclassification;
34
(b) the amount of each item or sub-item, or combination of items or
35
sub-items that were reclassified; and
36
(c) the reason for the reclassification.
37 38
- 30. When it is impracticable to reclassify comparative amounts,
39
Bank Indonesia will disclose:
40
(a) the reason for not reclassifying the amount, and
41
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.9
- Bank Indonesia Financial Accounting Policies Committee
(b) the nature of the adjustments that would have been made if the
1
amounts had been reclassified.
2 3
- 31. Enhanced inter-period comparability of information assists users in
4
making economic decisions. In some circumstances, it is impracticable to
5
reclassify comparative information for a particular prior period to achieve
6
comparability with the current period. For example, Bank Indonesia may not
7
have collected data in the prior period(s) in a way that allows reclassification,
8
and it may be impracticable to recreate the information.
9 10
- 32. The GAS on Accounting Policies, Changes in Accounting
11
Estimates and Misstatements, in accordance with PKAK 07: Non-Unique
12
Transactions, sets out the adjustments to comparative information required
13
when Bank Indonesia changes an accounting policy or corrects an error
14 15
Consistency of Presentation
16 17
- 33. The presentation and classification of items and sub-items in
18
the financial statements from one period to the next shall be carried
19
- ut consistently, unless:
20
(a) after a significant change has been made to Bank Indonesia‟s
21
duties or after a review of the financial statements, it is
22
apparent that another presentation or classification would be
23
more appropriate, having regard to the criteria for the selection
24
and application of accounting policies in PKAK 01: Accounting
25
Policies; or
26
(b) such change is permitted by a PKAK.
27
- 34. Changes in presentation are permitted if such changes provide
28
reliable and more relevant information to users or where a new structure is
29
likely to continue. If a change is made to the presentation of the financial
30
statements, Bank Indonesia reclassifies comparative information in
31
accordance with paragraphs 29 and 30.
32 33
STRUCTURE AND CONTENT
34 35
Introduction
36 37
- 35. This Statement requires specific disclosures in the statement of
38
financial position or statement of surplus deficit, and also requires the
39
disclosure of other items and sub-items in the financial statements or notes
40
to financial statements.
41
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.10
- Bank Indonesia Financial Accounting Policies Committee
1
- 36. This Statement sometimes uses the term "disclosure" in a broad
2
sense, encompassing the items and sub-items that are presented in the
3
financial statements. Disclosures are also required by other PKAKs. Unless
4
- therwise stated in this Statement or in another PKAK, such disclosures may
5
be made in the financial statements.
6 7
Identification of Financial Statements
8 9
- 37. Bank
Indonesia shall clearly identify the financial
10
statements and distinguish them from other information in the same
11
published document.
12 13
- 38. The PKAKs only apply to the financial statements, and not to
14
- ther information presented in the annual report, the documents submitted
15
to the House of Representatives and the government, or other documents.
16
Therefore, it is very important that users can distinguish between
17
information that is prepared in accordance with the PKAKs and other
18
information that is also useful to users.
19 20
- 39. Bank Indonesia clearly identifies the statements of financial
21
position, statement of surplus deficit, and the notes to financial
22
- statements. In addition, Bank Indonesia presents the following
23
information clearly, and repeatedly, if needed, so it is understandable:
24
(a) the name of Bank Indonesia as the party responsible for
25
preparing the financial statements and any changes in the
26
information from the end of the previous reporting period;
27
(b) the date of the end of reporting period or the period covered by
28
the financial statements or notes to financial statements;
29
(c) the reporting currency, as defined in PKAK 03: Effects of
30
Changes in Exchange Rates; and
31
(d) the level of rounding used in presenting amounts in the financial
32
statements.
33 34
- 40. Bank Indonesia has met the requirements of paragraph 39 by
35
presenting appropriate headings for pages, the statement of financial
36
position, the statement of surplus deficit, the notes to financial statements,
37
columns, and the like. Judgment is required in determining the best way of
38
presenting such information. For example, when Bank Indonesia presents
39
the financial statements electronically, separate pages are not always used;
40
further Bank Indonesia presents the matters referred to above so as to
41
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PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.11
- Bank Indonesia Financial Accounting Policies Committee
ensure that the information contained in the financial statements can be
1
readily understood.
2 3
- 41. To make the financial statements more readily understandable,
4
Bank Indonesia‟s financial statements may present information using
5
particular monetary units. This is acceptable as long as that Bank Indonesia
6
discloses the level of rounding and does not omit material information.
7 8
Statement of Financial Position
9 10
Information to be presented in the Statement of Financial Position
11 12
- 42. The statement of financial position shall include, at a
13
minimum, the following substantive items and sub-items:
14
(a) gold
15
(b) financial assets designated for monetary policy
16
(i) financial assets denominated in Rupiah
17
(ii) financial assets denominated in Rupiah – sharia
18
(iii) financial assets denominated in foreign currency
19
(c) claims
20
(i) claims on government, and
21
(ii) claims on banks
22
(d) currency in circulation
23
(e) financial liabilities designated for monetary policy
24
(i) financial liabilities denominated in Rupiah
25
(ii) financial liabilities denominated in Rupiah – sharia, and
26
(iii) financial liabilities denominated in foreign currency
27
(f) financial liabilities to government
28
(g) revaluation reserves
29
(h) capital
30
(i) accumulated surplus / deficit
31
- 43. Bank Indonesia does not present assets in terms of current and
32
non-current, or liabilities as short-term and long-term liabilities. Bank
33
Indonesia also does not present assets and liabilities based on liquidity.
34 35
- 44. Bank Indonesia presents capital and accumulated surplus
36
deficit in the statement of financial position as part of liabilities.
37 38
- 45. Bank Indonesia presents additional items, sub-items, title
39
and subtotals in the statement of financial position if such
40
SLIDE 17
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.12
- Bank Indonesia Financial Accounting Policies Committee
presentation is relevant to a proper understanding of the financial
1
position of Bank Indonesia.
2 3
- 46. This Statement does not set requirements for the sequence or
4
format of presentation of items and sub-items. Paragraph 42 sets out a list of
5
items and sub-items based on Bank Indonesia‟s duties and the nature of
6
items and sub-items, so as to ensure separate presentation in the statement
7
- f financial position. In addition, an item and sub-item is presented
8
separately if the relationship between that item and sub-item and Bank
9
Indonesia‟s duties or the nature, or the size of the item and sub-item, or the
10
aggregation of the item and sub-item in question means that separate
11
presentation is relevant to ensuring a proper understanding of Bank
12
Indonesia statement of financial position.
13 14
- 47. The use of different measurement bases for different classes of
15
assets shows that assets functions related to Bank Indonesia‟s duties and
16
the nature of assets are different. Accordingly, Bank Indonesia presents the
17
different classes of assets separately.
18 19
Information to be presented in the Statement of Financial Position or
20
the Notes to Financial Statements
21 22
- 48. Bank Indonesia discloses in the statement of financial
23
position or notes to financial statements, sub-classifications of items
24
and sub-items that are presented. Such disclosures are classified in a
25
manner appropriate to Bank Indonesia‟s operations.
26
- 49. The details of the sub-classification of items and sub-items
27
depend on the requirements of the PKAK and refer to paragraph 18.
28
Disclosure is different for each sub-item, for example:
29
(a) financial assets denominated in Rupiah are separated into repo claims,
30
lending in Rupiah, and securities.
31
(b) financial assets denominated in Rupiah - sharia are separated into
32
repo claims, provision for financing facilities, and securities.
33
(c) financial assets denominated in foreign currency are separated into
34
securities, placements, claims, and Special Drawing Rights.
35
(d) financial liabilities denominated in Rupiah are separated into
36
securities issued by Bank Indonesia, fixed-term placements from
37
banks, funds placements from banks, and repo obligations to banks.
38
(e) financial liabilities denominated in Rupiah - sharia are separated into
39
securities issued by Bank Indonesia, funds placements from banks,
40
and repo obligations to banks.
41
SLIDE 18
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.13
- Bank Indonesia Financial Accounting Policies Committee
(f) financial liabilities denominated in foreign currency are separated into
1
term placements, Special Drawing Right allocations, and foreign loans.
2 3
Statement of Surplus Deficit
4 5
Information to be presented in the Statement of Surplus Deficit
6 7
- 50. The statement of surplus deficit shall, at a minimum,
8
include the presentation of the following substantive items and sub-
9
items for the accounting period:
10
(a) monetary policy income and expenses
11
(i) interest income and expenses
12
(ii) income and expenses from sharia-based transactions
13
(iii) gains / losses on financial transactions
14
(iv) foreign exchange gains / losses
15
(b) income and expenses from payment system services
16
(c) income and expenses from macro-prudential supervision
17
(d) income from loans and financing
18
(e) tax expenses
19
(f) total surplus / deficit
20 21
- 51. Bank Indonesia presents additional items and sub-items,
22
and subtotals in the statement of surplus deficit if such presentation
23
is relevant to a proper understanding of the financial effects of Bank
24
Indonesia‟s duties.
25
- 52. The presentation of income and expenses based on their relevance
26
to the duties of Bank Indonesia and transaction nature helps the users of
27
financial statements to understand the financial impact of each Bank
28
Indonesia duty. Bank Indonesia incorporates additional items and sub-items
29
in the statement of surplus deficit, changes in the nomenclature used and
30
changes in the sequence of item and sub-item order if this is necessary so as
31
to explain the financial impact of the execution of Bank Indonesia‟s duties.
32
Bank Indonesia considers such factors as the relationship between income
33
and expenses and Bank Indonesia‟s duties, and the nature and materiality of
34
income and expenses. For example, Bank Indonesia may change the
35
nomenclature employed so as to provide information that is relevant to the
36
performance of its duties. Bank Indonesia is not allowed to offset income and
37
expense unless the criteria set out in paragraph 21 are satisfied.
38
- 53. Bank Indonesia present separately items for income and
39
expenses that arise from transactions or events that do not occur
40
SLIDE 19
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.14
- Bank Indonesia Financial Accounting Policies Committee
regularly, are not expected to occur frequently or regularly, and are
1
beyond the control or influence of Bank Indonesia.
2 3
- 54. Bank Indonesia is not allowed to present income and
4
expenses as extraordinary items in the statement of surplus deficit nor
5
in the notes to financial statements.
6 7
- 55. Bank Indonesia recognises all incomes and expense items
8
during a current period in the statement of surplus deficit, except
9
where required or permitted otherwise by the GAS on Accounting
10
Policies, Changes in Accounting Estimates and Misstatements, in
11
accordance with PKAK 07: Non-Unique Transactions related
12
corrections of misstatements and the effect of such changes on
13
accounting policies.
14 15
- 56. Bank Indonesia discloses the revaluation reserves that are
16
recognised in the statement of surplus deficit for the current period.
17 18
- 57. Other PKAKs explain how and when amounts previously
19
recognised in the revaluation reserves are recognised in the surplus deficit
20
for the current period. For example, gains or losses from the disposal of
21
foreign currency converted into rupiah are recorded in the surplus deficit for
22
the current period. These amounts may have been recognised in the
23
revaluation reserves in the current or prior periods.
24
Information to be presented in the Statement of Surplus Deficit or
25
Notes to Financial Statements
26 27
- 58. When the items and sub-items of incomes and expenses are
28
material, then Bank Indonesia discloses their nature and amounts
29
separately.
30 31
Notes to Financial Statements
32 33
Structure
34 35
- 59. Notes to financial statements:
36
(a) present information about the basis of preparation of the
37
financial statements and the specific accounting policies used,
38
in accordance with paragraphs 63-70;
39
(b) disclose the information required by PKAKs that is not presented
40
elsewhere in the financial statements; and
41
SLIDE 20
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.15
- Bank Indonesia Financial Accounting Policies Committee
(c) provide information that is not presented elsewhere in the
1
financial statements, where such information is relevant to a
2
understanding of the financial statements having regard to the
3
information cost-benefit considerations.
4 5
- 60. In so far as practicable, notes to financial statements are
6
presented systematically. Bank Indonesia cross references each item
7
and sub-item in the statement of financial position and statement of
8
surplus deficit to any related information in the notes to financial
9
statements.
10 11
- 61. Bank Indonesia presents notes to financial statements in the
12
following order, to assist users to understand the financial statements:
13
(a) a general description of Bank Indonesia policies that have a significant
14
impact on Bank Indonesia financial statements;
15
(b) a statement of compliance with the PKAKs (see paragraph 11);
16
(c) a summary of significant Bank Indonesia accounting policies (see
17
paragraph 64);
18
(d) additional information for items and sub-items presented in the
19
statement of financial position and statement of surplus deficit in the
20
- rder in which each statement and each item and sub-item is presented;
21
and
22
(e)
- ther disclosures, including:
23
- i. contingent liabilities (see GAS on Provisions, Contingent Liabilities
24
and Contingent Assets, in accordance with PKAK 07: Non-Unique
25
Transactions), and unrecognised contractual commitments; and
26
ii. disclosure of non-financial information related to the performance
27
- f Bank Indonesia‟s duties.
28 29
- 62. In some circumstances, it may be necessary or desirable to vary
30
the order of specific items and sub-items within the notes to financial
31
- statements. For example, Bank Indonesia may combine relevant information
32
- n Special Drawing Rights recognised as asset, and information on Special
33
Drawing Right allocations that are recognised as liabilities in the statement of
34
financial position. Nevertheless, Bank Indonesia retains a systematic
35
structure for the notes to financial statements as far as practicable.
36 37
- 63. Bank Indonesia may present notes to financial statements
38
providing information about the basis of preparation of the financial
39
statements and specific accounting policies as a separate section of the
40
financial statements.
41
SLIDE 21
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.16
- Bank Indonesia Financial Accounting Policies Committee
Disclosure of Accounting Policies
1 2
- 64. Bank Indonesia discloses in summary of its significant
3
accounting policies:
4
(a) the measurement basis (or bases) used in preparing the financial
5
statements;
6
(b) the other accounting policies used that are relevant to an
7
understanding of the financial statements.
8 9
- 65. It is important for Bank Indonesia to inform users of the
10
measurement basis or bases used in the financial statements (for example,
11
historical cost, current acquisition cost, net realisable value, fair value or
12
recoverable amount)as the measurement basis used in the preparation of the
13
financial statements significantly affects users‟ analysis. When Bank
14
Indonesia uses more than one measurement basis in the financial
15
statements, for example, when particular classes of assets are revalued, it is
16
sufficient to provide an indication of the categories of assets and liabilities to
17
which each measurement basis is applied.
18 19
- 66. In deciding whether a particular accounting policy should be
20
disclosed, Bank Indonesia considers whether disclosure would assist users in
21
understanding how transactions, other events and conditions are reflected in
22
statement of surplus deficit and reported financial position. Disclosure of
23
particular accounting policies is especially useful to users when those policies are
24
selected from alternatives allowed in PKAKs. Some PKAK specifically require
25
disclosure of particular accounting policies, including choices made by Bank
26
Indonesia between different policies it allows.
27 28
- 67. Bank Indonesia considers the nature of each operation related to
29
the achievement of objective of Bank Indonesia and estimates the accounting
30
policies that the users of the financial statements would expect to be
31
disclosed by Bank Indonesia. For example, the disclosure of accounting
32
policies related to foreign exchange.
33
- 68. An accounting policy may be significant because of the nature of
34
Bank Indonesia‟s operations, even though the amounts in the current period
35
and prior periods are not material. Bank Indonesia may also disclose any
36
accounting policy that is not specifically required by the PKAK but Bank
37
Indonesia selects and applies in accordance with PKAK 01: Accounting
38
Policies.
39
SLIDE 22
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.17
- Bank Indonesia Financial Accounting Policies Committee
- 69. Bank Indonesia discloses, in the summary of significant
1
accounting policies or other notes to financial statements, the
2
judgments (apart from those involving estimations (see paragraph 72)),
3
that Bank Indonesia has made in the process of applying accounting
4
policies and that have the most significant effect on the amounts
5
recognised in the financial statements.
6 7
- 70. In the process of applying accounting policies, Bank Indonesia
8
makes various judgments (apart from those involving estimations) that can
9
significantly affect the amounts it recognises in the financial statements. For
10
example, Bank Indonesia makes judgments in classifying the financial
11
instruments that it holds.
12 13
- 71. Some of the disclosures made in accordance with paragraph 69
14
are required by other PKAK.
15 16
Sources of Estimation Uncertainty that Affects Carrying Value
17 18
- 72. Bank Indonesia discloses information about the assumptions
19
it makes about the future, and other major sources of estimation
20
uncertainty at the end of the reporting period, that have a significant
21
risk of resulting in a material adjustment to the carrying amounts of
22
assets and liabilities within the next financial year. In respect of those
23
assets and liabilities, notes to financial statements include details of:
24
(a) their nature; and
25
(b) the carrying amount as at the end of the reporting period.
26 27
- 73. Determining the carrying amounts of some assets and liabilities
28
requires an estimation of the effects of uncertain future events on those
29
assets and liabilities at the end of the reporting period. For example, in the
30
case of a provision that depends on the future outcome of ongoing litigation;
31
future-oriented estimates are necessary so as to measure the recoverable
32
amount in respect of a group of fixed assets when current market prices are
33
not available; the impact of technological obsolescence on inventories; and
34
long-term employee benefit liabilities, such as pension obligations. These
35
estimates involve assumptions about the risk adjustment to cash flows and
36
discount rates, and future changes in future changes in prices affecting
37
- ther costs.
38 39
- 74. The assumptions and other sources of estimation uncertainty
40
disclosed in accordance with paragraph 72 regarding estimations that
41
require the most difficult, subjective and complex judgments by Bank
42
SLIDE 23
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.18
- Bank Indonesia Financial Accounting Policies Committee
- Indonesia. As the number of variables and assumptions affecting the
1
possible future resolution of the uncertainties increases, those judgements
2
become more subjective and complex, and the potential for a consequential
3
material adjustment to the carrying amounts of assets and liabilities
4
normally increases accordingly.
5 6
- 75. The disclosures in paragraph 72, are not required for assets and
7
liabilities where there is a significant risk that the carrying amounts of such
8
assets and liabilities may change materially within the next financial year if,
9
at the end of the reporting period, the assets and liabilities are measured at
10
fair value based on recently observed market prices. The fair value may
11
change materially during the next reporting period, but these changes would
12
not arise from assumptions or other sources of estimation uncertainty at the
13
end of the reporting period.
14 15
- 76. Bank Indonesia presents the disclosures referred to in paragraph
16
72 in a manner that helps users of the financial statements to understand
17
the judgments made by Bank Indonesia about the future and about other
18
sources of estimation uncertainty. The nature and extent of the information
19
provided vary according to the nature of the assumption and other
20
- circumstances. Examples of disclosures that are made in this respect
21
include:
22
(a) the nature of the assumption or other estimation uncertainty;
23
(b) the sensitivity of carrying amounts to the methods, assumptions and
24
estimates underlying their calculation, including the reasons for the
25
sensitivity;
26
(c) the expected resolution of an uncertainty and the range of possible
27
- utcomes in the next reporting period in respect of the carrying
28
amounts of the assets and liabilities affected; and
29
(d) explanation of the changes made to the previous assumptions related
30
to these assets and liabilities, if the uncertainty remains unresolved.
31
- 77. This Statement does not require Bank Indonesia to disclose
32
budget information or forecasts in making the disclosures required in
33
paragraph 72.
34 35
- 78. Sometimes it is impracticable to disclose the impact that may
36
arise from assumptions or other sources of estimation uncertainty at the end
37
- f the reporting period. In these circumstances, on the basis of existing
38
knowledge, Bank Indonesia discloses that outcomes within the next financial
39
year that are different from the assumption could require a material
40
adjustment to the carrying amount of the asset or liability affected. In all
41
SLIDE 24
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.19
- Bank Indonesia Financial Accounting Policies Committee
cases, Bank Indonesia discloses the nature and carrying amount of the
1
specific asset or liability (or group of assets or liabilities) affected by the
2
assumption.
3 4
- 79. The disclosures in paragraph 69 of particular judgments that
5
Bank Indonesia made in the process of applying the accounting policies do
6
not relate to the disclosures of sources of estimation uncertainty in
7
paragraph 72.
8 9
- 80. Other PKAKs requires the disclosure of some of the assumptions
10
that would otherwise be required by paragraph 72. For example, the GAS on
11
Provisions, Contingent Liabilities and Contingent Assets, pursuant to PKAK
12
07: Non-Unique Transactions that require disclosure (under certain
13
conditions) major assumptions concerning future events affecting classes of
14
- provision. PKAK 06: Policy-related Financial Instruments requires the
15
disclosure of the significant assumptions used in estimating the fair value of
16
Bank Indonesia assets and financial liabilities carried at fair value.
17 18
Revaluation Reserves, Capital, and Accumulated Surplus Deficit
19 20
- 81. Bank Indonesia discloses the following information in notes
21
to financial statements:
22
(a) details of the amount of the revaluation reserves at the
23
beginning and at the end of the period. Other PKAK explain how
24
the amount of the revaluation reserves should be disclosed, and
25
(b) details of capital in accordance with the provisions of the
26
related regulations.
27 28
Other Disclosures
29 30
- 82. Bank Indonesia discloses the following matters, if not
31
disclosed in any part of the information published in conjunction with
32
the financial statements:
33
(a) the status of Bank Indonesia as a state institution and its legal
34
basis,
35
(b) the objective and duties of Bank Indonesia; and
36
(c) the domicile and the address of Bank Indonesia‟s head office (or
37
principal place of business, if different from the office address).
38
SLIDE 25
PKAK 02: PRESENTATION OF FINANCIAL STATEMENTS
- 2.20
- Bank Indonesia Financial Accounting Policies Committee
TRANSITIONAL PROVISIONS
1 2
- 83. This Statement requires a restatement of the financial statements
3
from the previous period so as to provide comparative information, having
4
regard to PKAK 07: Non-Unique Transactions.
5 6
EFFECTIVE DATE
7 8
- 84. Bank Indonesia shall apply this Statement in accordance with the
9
financial year period stipulated by Bank Indonesia Board of Governors‟
10
Regulation.
11
SLIDE 26
Bank Indonesia Financial Accounting Policies Committee Bank Indonesia, Building C, 10th Floor,
- Jl. MH Thamrin, No.2, Jakarta Pusat, 10350
Phone: +6221-29817018 / 29817150; Fax: +6221-34830210, Email: kpkakbi@bi.go.id