The PSAK and IFRS have certain similarities and differences. Some of the standards as stated in the PSAK find a counterpart in a related IFRS standard. PSAKs 53, 58, 64, 71, and 72 are consistent with IFRSs 2, 5, 6, 9, and 15 respectively in all significant respects. Some PSAKs are mostly consistent with an IFRS counterpart but have slight differences through additional references, additional requirements, or amendments made by the Indonesian accounting authorities. These PSAKs are 22, 60, 62, and 65. Their counterparts are IFRSs 3, 4, 7, and 10.
Among the key differences between the PSAK and IFRS relate to IFRSs 1 and 14. IFRS 1 will not be adopted in Indonesia. This is because the standards which have been stated in IFRS 1 have already been indirectly mentioned in the PSAK. They are included as part of the transitional provisions which have been listed in the PSAK’s individual standards and interpretations.
IFRS 14 has not been officially adopted in Indonesia. However, certain entities nevertheless use the standards specified in IFRS 14. IFRS 14 applies to all entities in Indonesia that have voluntarily adopted IFRS 1 and have also adopted the standards provided by IFRS for the first time. After these entities adopt IFRS standards, they will be permitted to continue to use the accounting policies which they had been previously using for the recognition, measurement, impairment, and de-recognition of any of their regulatory deferral accounts.