The Student Association of the Accounting Study Program, Faculty of Economics and Business, Islamic University of Malang (Himaprodi Accounting FEB UNISMA) Holds the PSAK 71 Seminar on Improving Financial Report Transparency On Wednesday, October 12, 2022, by presenting resource persons Singgih Wijayana SE, MSc, Ph.D. (Director of Finance at RSP UGM and lecturers FEB UGM) and Sugiarto Kasmuri (Chairman of OJK Malang). This hybrid event was opened by the Dean of the Faculty of Economics and Business, Islamic University of Malang, Nur Diana SE, MSI.
In her speech, Diana emphasized that PSAK 71, as stipulated by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (DSAK IAI) on January 1, 2020, guides the recognition and measurement of financial instruments.

PSAK 71 Financial Instruments refers to the International Financial Reporting Standard (IFRS) 9 replacing PSAK 55, which was previously applicable. The critical point is to explore the classification of financial assets and the provision for impairment of financial assets in the form of receivables, loans, or credits,” said Diana
According to him, this standard fundamentally changes the method of calculating and providing reserves for losses due to uncollectible loans.
Meanwhile, Singgih Wijayana SE, MSc, Ph.D., who served as a member of DSAK IAI from 2014-2018, explained that PSAK 71 replaces PSAK 55 on the classification of financial instruments that must be based on a business model. This affects the measurement of the fair value of financial instruments.
“In the implementation of PSAK 71, the main point is regarding the allowance for impairment losses. Companies must start to provide for impairment losses regardless of the conditions,” he said. Therefore, the need for disclosure is also more comprehensive and detailed. The implementation of this PSAK is expected to make companies, especially the banking industry, more prepared for bad possibilities such as a recession,” he explained.
It is different with the Chairman of the Financial Services Authority of Malang, Sugiarto Kasmuri, providing insight into the implementation of accounting treatment and minimum references that must be met by banks in preparing and presenting financial statements by SAK.
Sugiarto further emphasized that the Financial Services Authority (OJK), as a regulator in the banking sector, felt the need to adjust PAPI considering PSAK 55 on Financial Instruments: Recognition and Measurement, which is the primary basis for it has been replaced with PSAK 71

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