• PSAK 71 Financial Instruments

PSAK 71 Financial Instruments

19 September 2017

As of July 27th, 2017, DSAK-IAI had endorsed PSAK 71: Financial Instrument from exposure draft previously issued on September 14th, 2016. This standard was adopted from IFRS 9: Financial Instruments, where the original IFRS 9 is effective on January 1st, 2018.

Considering all inputs and comments from stakeholders on accounting issues related to financial instruments including the effective date of application, DSAK-IAI decided to extend the first implementation date of PSAK 71 into January 1st, 2020 with earlier application is permitted. Since there are interrelated interactions between PSAK 71 and PSAK 72: Revenue from Contract with Customers, DSAK- IAI also extended the effective date of PSAK 72, 1 January 2020.

Regarding this endorsement, BDO Indonesia has managed to summarize the main provision contained in PSAK 71 as summarized on the attachment.