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How SAK ETAP to be implemented in LPD (assumption LPD same with BPR)
On May 19, 2009, the Financial Accounting Standards Board (DSAK) ratified the
Financial Accounting Standards for Entities without Public Accountability (SAK ETAP).
This SAK ETAP appears same with International Financial Reporting Standard for Small
and Medium-sized Entities (IFRS for SMEs). Despite having different titles, both SAK
ETAP and IFRS for SMEs are equally for entities without public accountability, only the
term used as a title
IFRS are small and medium-sized entities (SMEs).
Use of SAK ETAP as the financial accounting standard for LPD aims to simplify LPDs in
applying the standards accounting but still pay attention to harmonization with the standard
applicable international accounting that needs to be supported by the Code BPR or LPD
accounting as a more technical guide, where in The PA-BPR contains explanations and
examples of calculations is expected to facilitate understanding of SAK ETAP for BPR
Preparation of PA-BPR is intended to provide a minimum reference which must be fulfilled
by the RB in preparing its financial statements. In addition, PA-BPR also aims to create
uniformity the accounting treatment of unique transactions in the RB within preparation of
financial statements so as to improve quality the financial statements among BPRs,
particularly its appeal

The LPDs Position in Banking Institution


Under the Transitional Provisions of Banking Law no. 7 years 1992 Article 58 which has
been amended by Law no. 10 Year 1998 8 stated that: Village Bank, Village Lumbung,
Market Bank, Employee Bank, Lumbung Putih Nagari (LPN), Lembaga Perkreditan Desa
(LPD), Credit Bank Village (BKD), Small Business Credit (KURK), Bank Kredit
Kecamatan (BKK), Sub-district Credit Institution (Lembaga Perkreditan Kecamatan,
LPK), Village Product Work Bank (BKPD), and similar institutions are granted status as a
Rural Bank (BPR) by meeting the requirements of the ordinance which is stipulated by a
Government Regulation. With the same position with BPR, LPD has a strategic function
in developing and promote the economy of the surrounding communities.

The Different Between PSAK and PSAK ETAP

Element PSAK SAK ETAP

Financial Reporting With the existence of PSAK 1 Minimum required post


in the future on the balance sheet less.
front presentation of financial
report follow IFRS 1. Silent against outer post
with changes among others, ordinary
1. No more great posts
on the balance sheet
2. Comprehensive Income
3. Direct cash flow method
(recommended), and no 2. Income statement (without
directly. must present profit
1. Silent on outer post comprehensive loss)
ordinary
2. Income statement (without 3. Cash flow by method
must present profit indirect.
comprehensive loss)
3. Cash flow by method
indirect.

Fixed assets and 1. Provide choice of method


cost or revaluation for Fixed assets, investment
Investment property
fixed assets. property using the cost
2. Fair value method for method unless there is a
investment property provision the government
requires a model revaluation
applied
Intangible Assets 1. Currently intangible assets 1. Intangible assets are
is amortized over 20 years. 2. amortized over 10 year. 2.
ED PSAK 19 (Rising 2011) Measurement using the
3. Intangible assets with method cost.
unlimited useful life, not
amortized.
Financial Instrument 1. Scope: assets and 1. Scope; investation
financial obligations, on certain effects
2. Classified on value 2. Classification of trading,
fair through earnings report held
loss, held to fall to maturity, and available
tempo, available for sale, for sale. That matter
loans and loans refer to SFAS No.
given. 50 (1998).
3. Impayment using 3. Much simpler
incurred loss concept. compared to terms
4. Derecognition PSAK 50 and PSAK 55
5. Hedging and derivatives. (revised 2006)

Stock LIFO is no longer allowed LIFO is not allowed Other


(PSAK 14 revised 2008) conditions are the same with
PSAK
Decrease asset value 1.Scope except; 1.Its scope covers all types of
inventory, assets arising assets except for the assets
of construction contracts, that arise of retirement
assets benefits.
2. Not set decrease in
deferred tax, assets
goodwill value.
arising from retirement 3. There is an additional
benefits. decrease value for that loan
2. Impairment of non value granted and receivables
stock. which use
3. Decrease in unit value
cash producer and goodwill
Consolidated Financial Arranged in PSAK 4 Using Unregulated When it has an
reported the equity method (associate upper investment association
entities) and methods full or subsidiary using the equity
consolidation for entities method (on line
child consolidation)
Leasing 1. Set up an agreement 1. Not set
containing lease. 2. the agreement
Classification is a principle containing leases (PSAK
based. 3. The financial 8)
statements of the lessee and 2. Lease classification;
lessor combination IFRS for
SMEs and SFAS 13 (rule
based)
3. The financial statements of
the lessee
and lessors use
PSAK 30 (1990):
Accounting Rent

Borrowing cost Components of borrowing Direct loan costs


costs charged.
Recognition and
capitalization
borrowing costs

Employee benefits Explain: 1. Excludes remuneration


1. Short-term employee based on equity
benefits 2. For definite benefits
2. Post-employment benefits, using PUC and
for if not,
the benefits of using using the method
definitely which is simplified
PUC (Project Unit Credit)
3. Long-term benefits
others
4. Termination benefits
5. Equity-based benefits

Income tax 1. Using deffered tax concept 1. Using tax


2. Recognition and payable concept.
measurement Current taxes 3. 2. No recognition and
Recognition and tax measurement
measurement deferred tax deferred.
The Different between SAK ETAP and SAK ETAP BPR that implemented in LPD

The difference between SAK ETAP and SAK ETAP BPR lies in items presented in the
balance sheet, income statement, and cash flow statement. Its because the different types
of activities in which SAK ETAP BPR is intended for BPR-type financial institutions
engaged in the field credits to prepare financial statements while SAK ETAP is addressed
for all good entities engaged in services and manufacturing which has no significant public
accountability. The difference between these posts data below

Element SAK ETAP SAK BPR

Balance Sheet 1. Cash and cash equivalents; 1. Cash;


2. Accounts receivable and
accounts receivable 2. Cash in foreign currency;
other;
3. Inventory; 3.Bank Indonesia Certificates;
4. Investment properties;
5. Fixed assets; 4. Interest income will be
6. Intangible assets; accepted;
7. Accounts payable and debt
other; 5. Placements with other
8. Tax assets and liabilities; banks (demand deposits,
9. Estimated liabilities; savings deposits, deposits and
10. Equity. certificates of deposit); 6.
Credit;

7. Foreclosed properties;

8. Fixed assets and inventory;

9. Intangible assets

10. Other assets.


11. Immediate obligations;
12. Interest payable;
13. Tax liability;
14. Deposits;
15. Deposits from other
banks;
16. Loans accepted;
17. Funds paid in capital -
obligations;
18. Employee benefit
obligations;
19. Subordinated loans;
20. Loan capital;
21. Other obligations.
22. Capital;
23. Funds paid in capital -
equity;
24. Unearned Profit / Loss
realized;
25. Surplus of fixed asset
revaluation;
26. Retained earnings.

Income Statement 1. Revenue; 1. Operating income;


2. Finance charges;
3. Share of profit or loss from 2. Operating expenses;
investment
using the method 3. Non-operating income;
equity;
4. Tax expense; 4. Non-operating expenses;
5. Net profit or loss
5. Income tax expense

The Example of journal for LPD