ISAK 32 – Clarifying Accounting Policy Conflicts between SAK and Capital Market Pronouncements



This publication highlights the recently issued ISAK 32 Definition and Hierarchy of Indonesian Financial Accounting Standards (“SAK”), which clarifies the definition and hierarchy of SAK, particularly in cases where pronouncements issued by capital market regulators are in conflict with the existing requirements in PSAK/ISAK. ISAK 32 is intended to be an interim solution to resolve perceived inconsistencies between the definition of SAK in PSAK 1 and the hierarchy of SAK in PSAK 25, and is applicable for entities preparing its financial statements under SAK and making an explicit and unreserved statement of compliance to SAK.

ISAK 32 is effective from 1 January 2017. Early adoption permitted only in cases where, prior to 1 January 2017, an entity elects to apply certain accounting treatment issued by the regulators that is inconsistent with an existing PSAK/ISAK. 

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