Program Studi Akuntansi Universitas Katolik Parahyangan
Parahyangan Catholic University’s Accounting Study Program won a Competition Grant (Hibah Kompetisi) in the Ministry of Education and Culture’s Kampus Merdeka Competition Program in 2021. With regard to the achievement of this competition grant, Parahyangan Catholic University’s Accounting Study Program organized a series of activities, one of which was the debriefing and mentoring of the Accounting Competition Team by inviting accounting alumni and practitioners to deliver the materials for around 35 students of the Accounting Competition Team selected from the classes of 2018 and 2019.
The 5th session of debriefing was held online on Tuesday, August 3, 2021, by inviting the Accounting alumni class of 2004, Mr. Hendra Setiadi, SE, Ak, CPA, CA, CMA. He was working at PricewaterhouseCoopers (PwC), Jakarta, Indonesia, then moved to PT AIA Financial, and finally at Zurich Insurance Indonesia, with a position as VP Finance – Head of IFRS 17 Project.
On this occasion, he presented the theme of Financial Assets & Liabilities, which undoubtedly gave a lot of insights to the Accounting competition team of the Faculty of Economics, Parahyangan Catholic University. The session began with introductions, and he explained the reasons why this topic was very interesting to discuss. He said that in implementing a system, we need a reference. The reference referred to here is PSAK. Therefore, PSAK is an important thing to understand. After that, he explained the timeline of IFRS 9 development. The first draft appeared in 2009. This was motivated by the number of large companies that collapsed, so the question arose as to which was better between the use of historical value and fair value. Finally, historical value was used, but historical concepts cannot predict the future. The development of IFRS 9 continued until it finally became effective in 2018. In Indonesia, IFRS 9 was adopted in PSAK 71 and became effective in early 2020. The issuance of a new standard requires companies to switch from PSAK 55 to PSAK 71. This is certainly not easy and requires a lot of capital.
The differences that companies must face are regarding the classification and measurement of financial assets and liabilities, impairment, and hedge accounting. However, the main difference found in PSAK 71 lies in the calculation of Allowance for Impairment Losses (Cadangan Kerugian Penurunan Nilai – CKPN). In PSAK 71, the allowance for impairment losses starts when the company starts performing. The form of the reserves can range from 12-month expected credit losses to lifetime expected credit losses. In addition, there are three stages in the general impairment model: performing, underperforming, and non-performing. This activity was closed by giving a virtual certificate to Mr. Hendra Setiadi and also taking a group photo. He also explained the changes in the Hedge Accounting section, which includes de-designation, qualifying areas, hedging instruments, as well as hedge items. He said that the changes to PSAK considered market conditions. Here, we have to think about how to help the market so that it can be said that accounting follows a business, not a business that follows accounting.