PSAK 119: Subsidiaries without Public Accountability: Disclosures – Reduced disclosures for subsidiaries
Preparing disclosures is often a pain point in the drafting of financial statements. The recently published PSAK 119 may save eligible subsidiaries time and effort in this area when preparing its financial statements. However, each subsidiary would need to determine if adopting this optional standard makes sense under its circumstances, in light of the current and future information needs of its stakeholders.
PSAK 119 allows eligible subsidiaries (including subsidiaries of IFRS reporters) reduce their financial statements’ disclosures substantially, whilst remain applying recognition, measurement and presentation requirements in SAK Indonesia.
PSAK 119 is effective for reporting periods beginning on or after 1 January 2027, and earlier application is permitted.
Now it is time for subsidiaries to assess if they will benefit from transitioning to PSAK 119.
Read our observations of key aspects of PSAK 119.
