PSAK 71/IFRS 9 - Financial Instruments for Corporates

What’s new?

PSAK 71 introduces the new classification and measurement model, the forward-looking model for impairment and the new concept for hedge accounting. The assessment on the classification and measurement model will depend on type of financial assets. Debt and equity will need to be analysed carefully. Debt instruments will need further analysis before type of measurement can be determined.
The new impairment model introduces the three-stages model with the forward-looking factor that need to be considered in calculating provision for impairment. Some simplifications are offered but there are only certain type of assets that can use it. Hedge accounting now relies more on risk management objectives and relaxes on 80%-125% threshold. Hedge accounting should not be discontinued unless there’s a change in the risk management objective.
PSAK 71 has to be applied retrospectively. A modified retrospective approach may be taken for simplicity.

Who is it for?

PSAK 71 “Financial Instruments” is sometimes thought of as a ‘financial services’ standard. However, it applies to all entities and will have an impact on corporate entities too, which in some cases will be significant.

This training is ideal for finance professionals in all non-financial services sectors, especially finance managers, heads of consolidation, financial and accounting managers involved in preparing financial statements, controllers, treasurers and financial analysts.

How do we do it?

With detailed case studies, practical insights and frequently asked questions on implementation issues, participants will get a high-level overview of what needs to be done and how to deal with the changes. A five-hour online training course is structured as follows:

Classification and measurement
Impairment
Hedging
Transitional provision

Classification and measurement

The classification and measurement of financial assets is now determined based on the type of asset. Holder should identify whether the asset is an equity instrument or debt instrument in the perspective of the issuer. Debt instruments will face further SPPI and business model analysis before measurement can be determined.

Impairment

The forward-looking concept will need extensive judgements in calculating impairment provision. Several considerations regarding macro-economic variables need to be taken into account as well as the typical risks of the balance itself.

Hedging

The new PSAK 71 will bring a new paradigm on how hedge accounting should be implemented. The relief provided by the standard will help a company’s hedging strategy to be in line with the hedge accounting and reporting.

Transitional provision

The financial statements preparer shall apply the standards retrospectively. For simplicity, the reporter may opt to use a modified retrospective approach where any impact of the initial application will be charged to beginning retained earnings on the initial application.

Slides and materials will be provided in English and the course will be delivered in Bahasa Indonesia.

Minimum participants: 30 people per session
Maximum participants: 50 people per session

Investment:

Investment amount for open-class workshop: Rp 1,500,000 / pax

Investment amount is subject to VAT 10% and deduction of WHT 2%.

Get 5% discount if you register to all 3 sessions of Big-3 PSAK or pay a bundling price of Rp 5,000,000 for the whole workshop Big-3 PSAK + COVID-19 Implications.

Get additional 5% discount if you're registering for more than 5 people.

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