The Role of Government Accounting Standards Committee (KSAP) in Supporting the Implementation of Accrual Accounting in Indonesia

Transcription

1 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 1

2 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 2

3 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/ 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 3

4 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 4

5 Indonesian Government Accounting Standards Development

6 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. 6

7 Cash towards Accrual Conceptual Framework Conceptual Framework Accrual 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 The Indonesian Government Accounting Standards (IGAS) 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 7

8 Interpretation of Government Accounting Standard Statements Interpretation No 1 Interpretation No 2 Interpretation No 3 Interpretation No 4 Interpretation Foreign Currency Transactions Revenue Recognition in State/Local Treasury Accounts Financing Disbursement Recognition from State/Local Treasury Accounts Changes in Accounting Policies and Correction of Errors without Restatement 8

9 Technical Bulletins TB 01 TB 02 TB 03 TB 04 Cash towards Accrual Preparation Initial Balance Sheet for Central Government Preparation Initial Balance Sheet for Local Government Presentation Initial Balance Sheet for Local Government with Conversion Presentation and Disclosure of Government Spending Accrual 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

10 Technical Bulletins Cash towards Accrual Accrual TB 13 Accounting for Grants -- TB 14 Accounting for Cash -- TB Accounting for State Losses (2015) TB Accounting for Transfers (2015) 10

11 Coverage of Indonesian Government Accounting Standards 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 Source: 1. Law of State Budget Accountability Year Regulation of Ministry of Home Affairs No. 16 Tahun

12 The Roles of Government Accounting Standards Committee in the Implementation of Accrual Accounting 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) 12

13 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 13

14 Regulation: 1. Law No.6/2014 on Village 2. Law No.17/2003 on State Finance Conditions: Village Budget Allocation 2015 (IDR) 2016 (IDR) Increase 74,000 20,766,200,000,000 46,982,080,000, % Village fund should be managed fairly, properly, professional and accountable. 14

15 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 15

16 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) 16

17 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 17

18 Thank You Government Accounting Standards Committee Gedung Prijadi Praptosuhardjo II, Lt. 2, Direktorat Jenderal Perbendaharaan Jl. Budi Utomo No. 6, Jakarta (021) , (021) Ext 5311 Faksimile : (021) Website : sekretariatksap@gmail.com 18