PSAK 71, as a substitute for PSAK 55 on financial instruments approved by the Accounting Standards Board of the Indonesian Institute of Accountants (DSAK-IAI), is a standard that has caused many polemics in its implementation in various companies. One of the essential points that you are based on in this standard is to examine the classification of financial assets and the provision for impairment of financial assets in the form of receivables, loans, or credits, "said Diana, the Dean of FEB UNISMA in the PSAK 71 One-Day Seminar in the Multimedia Room FEB UNISMA Floor 3.
According to him, the standard that refers to the International Financial Reporting Standard (IFRS) 9 has fundamentally changed the method of calculating and providing reserves for losses due to uncollectible loans.
Meanwhile, the Head of the Financial Services Authority of Malang, Sugiarto Kasmuri, in his presentation to the students of the Accounting Study Program FEB UNISMA, said that PSAK 71 mandates corporations to provide reserves from the beginning of the credit period. Currently, the basis for the provision is the expected credit loss, which is based on various factors, including economic projections for the future.
Sugiarto further emphasized that the Financial Services Authority (OJK), as a regulator in the banking sector, felt the need to bridge this issue by issuing a Banking Accounting Guidebook for Conventional Commercial Banks. According to him, the banking sector is an industry that is affected by the implementation of PSAK 71.
“The existence of Banking Accounting Guidelines can improve the completeness, fairness, accuracy, and clarity of the information presented in bank financial statements so that the information presented can be better understood and trusted by the public. Good understanding and public trust in the information submitted by banks will further grow and increase public confidence in the banking industry as a whole,” he said

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