PSAK

PSAK stands for Pernyataan Standar Akuntansi Keuangan, the Indonesian set of financial accounting standards. Issued by the Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia (DSAK-IAI), PSAK governs the preparation, recognition, measurement, presentation, and disclosure of financial statements in Indonesia. The standards are designed to harmonize Indonesian financial reporting with International Financial Reporting Standards (IFRS) while accommodating domestic regulatory and tax requirements. PSAK covers topics ranging from the presentation of financial statements to revenue, assets, liabilities, equity, and related disclosures, and it is updated periodically to reflect changes in IFRS and Indonesian needs.

The Indonesian Accounting Standards Board (DSAK) within the Ikatan Akuntan Indonesia is responsible for developing and issuing PSAK. Rulemaking typically involves public consultation and alignment with practitioners and regulators. Compliance with PSAK is required for financial statements prepared under Indonesian generally accepted accounting principles, and is enforced by regulators such as the Financial Services Authority (OJK) for listed and supervised entities, the Indonesia Stock Exchange, banks, and other public-interest entities.

PSAK is largely IFRS-based, with the aim of achieving high-quality, understandable, and comparable financial reporting for Indonesian entities. While the core framework is aligned with IFRS, certain standards and disclosures reflect Indonesia's regulatory environment and domestic needs. As with IFRS, the adoption of PSAK facilitates cross-border investment and financial analysis, while maintaining local applicability.