PSAK 50 (revised 2006) Financial Instruments: Presentation and Disclosures

Summary:

Adapted from IAS 32 (2000) and does not refer to recent changes in IAS 32
such as issuance of IFRS 7 Disclosures and provisions on financial
guarantee contracts.
This standard is applied on a prospective basis for financial statements
covering the periods beginning on or after January 1, 2009. Earlier application
is permitted.
Supersedes PSAK 50 (1998) Accounting for Certain Investments in Equity
Securities and PSAK 55 (revised 1999) Accounting for Derivative
Instruments and Hedging Activities.
Applicable for those contracts to buy or sell a non-financial item that can be
settled net in cash or another financial instrument, or by exchanging financial
instruments.
Provides the definitions of financial instrument, financial asset, financial
liability, equity instrument and fair value.
Provides the classification of a financial instrument, from the issuers
perspective, as a financial liability, a financial asset or an equity instrument in
accordance with the substance of the contractual arrangement and
definitions.
Provides the accounting and measurement for compound financial
instruments, and accounting for treasury shares (reacquisition of own equity
instruments), interest, dividends, losses and gains relating to a financial
instrument as well as transaction costs.
Provides for the conditions when to offset financial asset and financial liability.
Provides for the following disclosures:
o

information to enhance understanding of the significance of financial

instruments to a companys financial position, performance and cash
flows, and assist to assess the amounts, timing and certainty of future
cash flows associated with those instruments.

description of financial risk management objectives and policies, and

hedging activity.

terms, conditions and accounting policy on financial instruments.

information on the companys exposure to various types of risks.

information on the determination of fair value.

other disclosures on derecognition, collateral, compound financial

instruments, financial instrument at fair value through profit or loss,
reclassifications, material items of income, expense, gains and losses
resulting from financial instruments, impairment, defaults and breaches.

PSAK 55 (revised 2006) Financial Instruments: Recognition and Measurement

Summary:

Adapted from IAS 39 (revised 2005) Financial Instruments: Recognition and

Measurement and does not refer to IFRS 7 Disclosures and provisions on
financial guarantee contracts.
Applied on a prospective basis for financial statements covering the periods
beginning on or after January 1, 2009. Earlier application is permitted.
This standard supersedes the recognition and measurement provisions on
financial instruments provided in:
o PSAK 10 Transactions in Foreign Currency
o PSAK 28 (revised 1996) Accounting for Loss Insurance
o PSAK 31 (revised 2000) Accounting for Banks
o PSAK 36 (revised 1996) Accounting for Life Insurance
o PSAK 42 (1998) Accounting for Securities Companies
o PSAK 43 (1997) Accounting for Factoring of Receivables
o PSAK 50 (1998) Accounting for Certain Investments in Securities and
o PSAK 55 (revised 1999) Accounting for Derivative Instruments and
Hedging Activities
Provides the principles on recognition and measurement of financial assets,
financial liabilities and some contracts to buy or sell non-financial items. The
requirements for presentation and disclosures of financial instruments are
provided in PSAK 50 (revised 2006).
Provides for definitions and characteristics of a derivative, 4 categories of
financial instruments (financial instrument at fair value through profit or loss,
held-to-maturity investments, loans and receivables and available-for-sale
financial assets), recognition and measurement (amortised cost, effective
interest method, derecognition, fair value, transaction costs) and those
relating to hedge accounting (firm commitment, forecast transaction, hedging
instrument, hedged item and hedge effectiveness).
Provides for recognition and measurement of embedded derivatives.
Provides for conditions to recognize and derecognize financial instruments,
the initial and subsequent measurement of the 4 categories of financial
instruments.
Provides for the determination of fair value measurements based on active
market quoted price and valuation techniques.
Provides for the restrictions on reclassification of financial instrument into or
out of fair value through profit or loss while held or issued and conditions on
reclassification of held-to-maturity investment as available-for-sale.
Provides for recognition of gain or loss relating to financial instruments either
through profit or loss or directly in equity.
Provides for determination of impairment and uncollectibility of financial
assets.
Provides for hedging, conditions to designate hedging instruments,
recognition and designation of hedged items, hedge accounting, and 3 types
of hedging relationships (fair value hedge, cash flow hedge and hedge of net
investment in foreign operation).

Attachment: Sample Financial Statement Disclosures

These sample disclosures should be presented in the Notes to Financial
Statements under Summary of Significant Accounting Policies to be entitled
Revised Statements of Financial Accounting Standards.
English:
REVISED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS
In May 2007, the Indonesian Institute of Accountants announced the approval of
the following revised Statements of Financial Accounting Standards (PSAK) in
December 2006:
PSAK No. 50 (Revised 2006), Financial Instruments: Presentation and
Disclosures contains the requirements for the presentation of financial
instruments and identifies the information that should be disclosed. The
presentation requirements apply to the classification of financial instruments, from
the perspective of the issuer, into financial assets, financial liabilities and equity
instruments; the classification of related interests, dividends, losses and gains;
and the circumstances in which financial assets and financial liabilities should be
offset. This standard requires the disclosure, among others, of information about
factors that affect the amount, timing and certainty of an entitys future cash flows
relating to financial instruments and the accounting policies applied to those
instruments. PSAK 50 (Revised 2006) supersedes PSAK No. 50 Accounting for
Certain Investments in Securities and is applied prospectively for the periods
beginning on or after January 1, 2009. Earlier application is permitted and should
be disclosed.
PSAK No. 55 (Revised 2006). Financial Instruments: Recognition and
Measurement establishes the principles for recognising and measuring financial
assets, financial liabilities, and some contracts to buy or sell non-financial items.
This standard provides for the definitions and characteristics of a derivative, the
categories of financial instruments, recognition and measurement, hedge
accounting and determination of hedging relationships, among others. PSAK No.
55 (Revised 2006) supersedes PSAK No. 55 Accounting for Derivative
Instruments and Hedging Activities, and is applied prospectively for financial
statements covering the periods beginning on or after January 1, 2009. Earlier
application is permitted and should be disclosed.
The Company is still evaluating the effects of these revised PSAKs and has not
yet determined the related effects on its financial statements.

Bahasa Indonesia:
PERNYATAAN STANDAR AKUNTANSI KEUANGAN YANG DIREVISI
Pada bulan Mei 2007, Ikatan Akuntan Indonesia mengumumkan pengesahkan
Pernyataan Standar Akuntansi Keuangan (PSAK) revisi berikut pada bulan
Desember 2006:
a. PSAK No. 50 (Revisi 2006), Instrumen Keuangan: Penyajian dan
Pengungkapan, berisi persyaratan penyajian dari instrumen keuangan dan
pengidentifikasian informasi yang harus diungkapkan. Persyaratan penyajian
tersebut diterapkan terhadap klasifikasi instrumen keuangan, dari perspektif
penerbit, dalam aset keuangan, kewajiban keuangan, dan instrumen ekuitas;
pengklasifikasian yang terkait dengan suku bunga, dividen, kerugian dan
keuntungan, dan keadaan dimana aset keuangan dan kewajiban keuangan
akan saling hapus. Pernyataan ini mensyaratkan pengungkapan, antara lain,
informasi mengenai faktor yang mempengaruhi jumlah, waktu dan tingkat
kepastian arus kas masa datang yang terkait dengan instrumen keuangan
dan kebijakan akuntansi yang diterapkan untuk instrumen tersebut. PSAK No.
50 (Revisi 2006) ini menggantikan PSAK No. 50 Akuntasi Investasi Efek
Tertentu dan diterapkan secara prospektif untuk periode yang dimulai pada
atau setelah 1 Januari 2009. Penerapan lebih dini diperkenankan dan harus
diungkapkan.
b. PSAK No. 55 (Revisi 2006), Instrumen Keuangan: Pengakuan dan
Pengukuran, mengatur prinsip-prinsip dasar pengakuan dan pengukuran
aset keuangan, kewajiban keuangan, dan kontrak pembelian dan penjualan
item non-keuangan. Pernyataan ini, antara lain, memberikan definisi dan
karakteristik terhadap derivatif, kategori dari instrumen keuangan, pengakuan
dan pengukuran, akuntansi lindung nilai dan penetapan dari hubungan
lindung nilai. PSAK No.55 (Revisi 2006) ini menggantikan PSAK No. 55
Akuntansi Instrumen Derivatif dan Aktivitas Lindung Nilai, dan diterapkan
secara prospektif untuk laporan keuangan yang mencakup periode yang
dimulai pada atau setelah 1 Januari 2009. Penerapan lebih dini
diperkenankan dan harus diungkapkan.
Perusahaan sedang mengevaluasi dampak dari PSAK revisi tersebut dan belum
menentukan dampaknya terhadap laporan keuangan.