This document compares International Financial Reporting Standards (IFRS) and the Indonesian accounting framework. IFRS is used by profit-oriented entities globally, while the Indonesian framework can be used by profit, non-profit, and sharia entities in Indonesia. Some key differences are that IFRS requires fair valuation of more assets and disclosures around overrides of fair presentation, while the Indonesian framework is more limited. IFRS also requires full retrospective application when first adopted, unlike the Indonesian framework. However, both frameworks aim to provide understandable, relevant, reliable and comparable financial information using similar reporting elements. The differences can impact revenue recognition, fair value measurements, balance sheet classifications, and presentation of other comprehensive income in financial

1. Debora Anggraini
Nanda Nursafarna
Novina Saraswati
Sukhanda Dhira

2. Background
 IFRS:
 Is the term used to indicate the whole body
of IASB authoritative literature
 IFRS are designed for use by profit- oriented
entities
 Any entity claiming compliance with IFRS
must comply with all standards and
interpretations.
 Indonesia Framework:
 The term used to indicate the whole body of
authoritative accounting literature by the
Indonesia Accounting Standards Board
 Indonesia framework use for profit and
nonprofit-oriented entities, as well as
syariah entities.

3. Differences
IFRS
 Requires fair
valuation of
certain financial
instruments and
certain biological
assets
 For fair
presentation
override, IFRS
requires disclosure
of the nature of
and the reason for
the departure and
the financial
impact of the
departure
Indonesian
Framework
 The types of asset
measured at fair
values, or those
that can be
revaluated are
more limited
 Does not address
the issue of fair
presentation
override
specifically

4. IFRS
 First-time adopting
of IFRS as the
primary accounting
basis requires full
retrospective
application of all
IFRS
Indonesian framework
 No guidance on the
first time adopting
Indonesian
accounting
framework.
Differences
(cont.)

5. Similarities
 Requires financial Information that must
be understandable, relevant, reliable
and comparable.
 Presents five reporting elements: assets,
liabilities, equity, income, and expenses.
 Permit the revaluation of intangible
assets, PPE, and Investment property.

6. Impact for
financial
statement
 Revenue recognition: The concept of IFRS
is to lesser extent, while Indonesian GAAP
being principle-based. this fundamental
difference requires a detailed and how
companies operate, including, how they
bundle various products and services in the
marketplace.
 Sales of service: differences within the
models provide the potential for revenue to
be recognized earlier under IFRS and
Indonesian framework when service-based
transaction include a right of refund.

7. Impact for
financial
statement
(cont.)
 Fair value: when measuring the fair value of
assets acquired and liabilities assumed, there
are differences among IFRS and Indonesian
GAAP, which could result in different fair
value of assets acquired and liabilities
assumed including goodwill.
 Balance sheet: Under IFRS, the classification of
debt does not consider post-balance sheet
agreements. As such, more debt is classified
as current under IFRS. Indonesian framework
provide an entity with the ability to present
expenses based on their based on function.
however, contrast with IFRS, Indonesia GAAP
allows display of components of other
comprehensive income in a statement of
changes in equity.