Guidance on the 
   New Big-3 Standards
   Transportation and Logistics 
   Sector
   October 2019
   Introduction
   Indonesia is committed to supporting International Financial Reporting Standards 
   (IFRS) as the globally - accepted accounting standards, and to continue with the IFRS 
   convergence process, while further minimising the gap between Standar Akuntansi 
   Keuangan (SAK) and IFRS. The decision to elect the convergence approach instead 
   of a full adoption was based on the consideration of the potential interpretation and 
   implementation issues. 
   Since making the public commitment to support IFRS on 8 December 2008, the Dewan 
   Standar Akuntansi Keuangan – Institut Akuntansi Indonesia (DSAK-IAI) has been 
   converging the SAK towards IFRS. The DSAK-IAI is currently working to reduce the gap 
   between SAK and IFRS implementation to one year.
   As part of IFRS convergence, DSAK-IAI has adapted IFRS 9 Financial Instruments, IFRS 
   15 Revenue from Contracts with Customers and IFRS 16 Leases to IFAS by issuing 
   PSAK 71, PSAK 72 and PSAK 73, respectively, in 2017.
   This publication reflects the implementation developments and provides guidance on 
   the application of the new standards (PSAK 71, PSAK 72 and PSAK 73) specific to the 
   transportation and logistics industry.
    
                                 Table of Contents
                                 Introduction                                                                       2
                                 PSAK 71 – Financial Instruments                                                    4
                                  Overview 5
                                  Classification and measurement – Business model assessment                        6
                                  Impairment of financial assets measured at amortised cost                         9
                                  Impairment – Scope exception for trade and lease receivables: 
                                  The simplified approach                                                          10
                                  Provision matrix                                                                 12
                                  Intra-group loans                                                                15
                                  Hedging 17
                                  Financial liabilities                                                            18
                                 PSAK 72 - Revenue from contracts with customers                                   20
                                  Overview 21
                                    1. Identify the contract                                                       22
                                    2. Identify performance obligations                                            24
                                    3. Determine transaction price                                                 26
                                    4. Allocate transaction price                                                  30
                                    5. Recognise revenue                                                           34
                                  Other consideration                                                              37
                                 PSAK 73 - Leases                                                                  40
                                  At a glance                                                                      41
                                  Overview 42
                                  Is the contract a lease?                                                         44
                                  Components, contract consideration and allocation                                47
                                  Lease classification and initial measurement                                     48
                                  Sale and leaseback transactions                                                  51
                          PSAK 71
                 Financial instruments
       In 2017, DSAK-IAI published the complete version of 
       PSAK 71, ‘Financial instruments’, which replaces most 
       of the guidance in PSAK 55 ‘Financial Instruments: 
       Recognition and Measurement’. This includes amended 
       guidance for the classification and measurement of 
       financial assets by introducing a fair value through the 
       other comprehensive income category for certain debt 
       instruments. It also contains a new impairment model, 
       which will result in earlier recognition of losses.
       No changes were introduced for the classification 
       and measurement of financial liabilities, except for the 
       recognition of changes in the entity’s credit risk in other 
       comprehensive income for liabilities designated at fair 
       value through the  profit or loss. It also includes the new 
       hedging guidance. These changes are likely to have 
       a significant impact on entities that have significant 
       financial assets. 
       PSAK 71 will be effective for annual periods beginning 
       on or after 1 January 2020.