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Accounting Theory
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Financial Accounting Standards are the terms of reference in procedures relating to the
presentation of financial statements. Its existence is required to establish a common procedure in
explaining how financial statements are prepared and presented, thereby meaningful in terms of
language unity in analyzing financial reports for the company.
On the occasion This time I will discuss about the comparison of financial accounting standards that
have been used for a long time in Indonesia that we often call the PSAK with international standard
that is currently being discussed.
Before we discuss what is the difference between IFRS & SAK, of course We must first understand
what the definition of each standard of this financial statements
Understanding SAK
In addition to the uniformity of financial statements, accounting standards are also required to
facilitate the preparation of financial statements, facilitate auditors and facilitate readers of
financial statements to interpret and compare the financial statements of different entities.
Understanding IFRS
The International Accounting Standards Board (IASB), formerly known as the International
Accounting Standards Commission (AISC), is an independent institution to develop
accounting standards. The organization aims to develop and encourage the use of high
quality, understandable and comparable global accounting standards (Choi et al., 1999 in
Intan Immanuela, puslit2.petra.ac.id).
From the above explanation, there must be a very basic question that is, what is the difference
between the two standards of the financial statements, and here are some of the differences
that we can see.
PSAK IFRS
Cash Flow Statements Same with IFRS but in some Standard post but provision
(Formats and Methods) entities must use the direct is limited to its contents.
method Using the direct method or
indirect method
Presentation of recognized Recognized for the gains and Presents financial statements
gains and losses / other losses presented in the that recognize gains and
Comprehensive Income shareholders' equity change losses in separate notes or
statement notes on changes in
shareholder equity
Presentation Result of In particular does not require Using the equity method that
Associate Company the appointment of after-tax shows the after-tax stock
stock results results