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The Role of Government Accounting

Standards Committee (KSAP) in

Supporting the Implementation of

Accrual Accounting in Indonesia

By:

Binsar Simanjuntak

Chairman of Working Committee

Government Accounting Standards Committee

Agenda

• Organization

• Strategic Activities

• Indonesian Government Accounting Standards Development

• Due Process

• The Indonesian Government Accounting Standards Statements (IGAS)

• Interpretation of Government Accounting Standards Statements

• Technical Bulletins

• Coverage of Indonesian Government Accounting Standards

• The Role of GASC in the Implementation of Accrual Accounting

• Development of Indonesian Government Accounting Standards

• Outcome of the Implementation of Accrual Accounting

• Challenges in the Implementation of Accrual Accounting

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ORGANIZATION

1. KSAP was established by Presidential Decree No. 84/2004 and amended by Presidential Decree No. 21/2013 in accordance with the State Finance Law No.17/2003 and State Treasury Law No. 1/2004.

2. KSAP is established to improve transparency and accountability of public financial management through the development and the implementation of Government Accounting Standards.

3. KSAP consist of:

a. Consultative Committee

b. Working Committee

Assisted by:

a. Working Group

b. Secretariat

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STRATEGIC ACTIVITIES

1. Development of Government Accounting Standards (GAS)

Statements

2. Development of Interpretation of Government Accounting

Standards Statements

3. Development of Technical Bulletin of Government Accounting

Standards

4. Development of Case Studies of Government Accounting

5. GAS Limited Hearing

6. GAS Public Hearing

7. Training of Trainers/Workshop/Socialization

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2004

2010 2015

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Indonesian Government Accounting

Standards Development

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DUE PROCESS

1. Topic Identification to be Developed as Standard

2. Assign Working Group

3. Limited Research by Working Group

4. Standard drafting by Working Group

5. Discussion of preliminary draft by Working Committee

6. Decision Making for Exposure Draft

7. Launching of the Exposure Draft

8. Limited hearing & public hearing

9. Discussion of comments and inputs from hearings

10. Finalization of the standards, by taking into BPK’s consideration.

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Cash towards Accrual Accrual

Conceptual Framework Conceptual Framework

PSAP 01 Presentation of Financial Statements Presentation of Financial Statements

PSAP 02 Statement of Budget Realization Statement of Cash-based Budget Realization

PSAP 03 Statement of Cash Flows Statement of Cash Flows

PSAP 04 Notes to the Financial Statements Notes to the Financial Statements

PSAP 05 Accounting for Inventories Accounting for Inventories

PSAP 06 Accounting for Investment Accounting for Investment

PSAP 07 Accounting for Fixed Assets Accounting for Fixed Assets

PSAP 08 Accounting for Construction in Progress Accounting for Construction in Progress

PSAP 09 Accounting for Liabilities Accounting for Liabilities

PSAP 10 Correction of Errors, Changes in Accounting Policy,

and Extraordinary Events

Correction of Errors, Changes in Accounting Policy,

Changes in Accounting Estimation and Discontinued

Operations

PSAP 11 Consolidation of Financial Statements Consolidation of Financial Statements

PSAP 12 - Statement of Operations

PSAP 13 - Accounting of Public Service Agencies

The Indonesian Government Accounting Standards

(IGAS)

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Interpretation of Government Accounting Standard

Statements

Interpretation

Interpretation No 1 Foreign Currency Transactions

Interpretation No 2 Revenue Recognition in State/Local Treasury Accounts

Interpretation No 3 Financing Disbursement Recognition from State/Local Treasury Accounts

Interpretation No 4 Changes in Accounting Policies and Correction of Errors without Restatement

Cash towards Accrual Accrual

TB 01 Preparation Initial Balance Sheet for Central

Government

--

TB 02 Preparation Initial Balance Sheet for Local

Government

--

TB 03 Presentation Initial Balance Sheet for Local

Government with Conversion

--

TB 04 Presentation and Disclosure of Government

Spending

--

TB 05 Accounting for Depreciation TB 18 Accounting for Depreciation (2014)

TB 06 Accounting for Receivable TB 16 Accounting for Receivables (2015)

TB 07 Accounting for Revolving Funds

TB 08 Accounting for Liabilities TB 22 Accounting for Liabilities (2015)

TB 09 Accounting for Fixed Assets TB 15 Accounting for Fixed Assets (2014)

TB 10 Accounting for Social Assistance Expenditure TB 19 Accounting for Social Assistance (2015)

TB 11 Accounting for Intangible Assets TB 17 Accounting for Intangibles Assets (2014)

TB 12 Accounting for Transaction in Foreign

Currencies

--

Technical Bulletins

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Cash towards Accrual Accrual

TB 13 Accounting for Grants --

TB 14 Accounting for Cash --

TB 20 -- Accounting for State Losses (2015)

TB 21 -- Accounting for Transfers (2015)

Technical Bulletins

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1. Central Government:

a. 1 Central Government (CGFS)

b. 87 Reporting Entities (Line Ministries/Agencies)

2. Local Government:

a. 34 Provinces

b. 416 Municipalities

c. 98 Cities

3. Total 636 Entities

Coverage of Indonesian Government

Accounting Standards

Source:

1. Law of State Budget Accountability Year 2015

2. Regulation of Ministry of Home Affairs No. 16 Tahun 2015

1. Issuance of Government Regulation Number 71 Year 2010 on

Accrual-based Indonesian Government Accounting Standards

(IGAS) (fully implemented from 2015)

2. Issuance of IGAS Statement Number 13 on Accounting of Public

Service Agencies (implemented from 2016)

3. Revision of IGAS Statement Number 6 on Accounting for Investment

(in process)

4. Issuance of Interpretation of IGAS on Changes in Accounting

Policies and Correction of Errors without Restatement (implemented

from 2015)

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The Roles of Government Accounting Standards

Committee in the Implementation of Accrual Accounting

1. Village Government Financial Reporting Standard

2. Government Accounting Standard Statement on Accounting for Intangible

Assets

3. Government Accounting Standard Statement on Events after Reporting Date

4. Government Accounting Standard Statement on Accounting for Non

Governmental Entities Receiving the State Budget

5. Government Accounting Standard Statement on Operational Revenue

6. Government Accounting Standard Statement on Joint Arrangements

7. Technical bulletin on Accounting for Revolving Funds (in the finalization

process)

8. Technical bulletin on Accounting for Tax Revenue (in the finalization process)

9. Technical bulletin on Accounting for Non Tax Revenue

10. Technical bulletin on Accounting of Public Service Agencies

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Regulation:

1. Law No.6/2014 on Village

2. Law No.17/2003 on State Finance

Conditions:

Village fund should be managed fairly, properly, professional and

accountable.

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Village Budget Allocation

Increase 2015 (IDR) 2016 (IDR)

74,000 20,766,200,000,000 46,982,080,000,000 226%

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Standard Setting Process:

High level Meeting

22 April 2016

Limited Hearing

9 Nov 2016

Public Hearing 14 Dec 2016

Village Government Financial Reporting Standard Exposure Draft can be

downloaded at www.ksap.org

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1. Improvement in accountability of Government performance (for

example expenses/accruals will reflect the actual resourses used

for government activities)

2. Increase in public awareness on government accounting

3. Increase in top management support and commitment (indicated

by accrual declaration by head of agencies and head of regional

governments, and establishment of accounting clinics at central

and regional government entities)

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1. Lack of capable human resources with accounting

background

2. Inadequate government internal control system

3. Availability of relevant and reliable government

data

4. Compliance level to laws and regulations

5. Integrated accrual based information in government

financial management system

Thank You Government Accounting Standards Committee

Gedung Prijadi Praptosuhardjo II, Lt. 2, Direktorat Jenderal Perbendaharaan

Jl. Budi Utomo No. 6, Jakarta (021) 352-4551, (021) 344-9230 Ext 5311

Faksimile : (021)-352-4551 Website : www.ksap.org

E-mail: sekretariatksap@gmail.com

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