The standards are effective for periods commencing 1 January:
In Indonesia, the effective date on the implementation of PSAK 71, 72 and 73 (adopting IFRS 9, 15 and 16, respectively) is January 1, 2020.
These standards will be the last “big” new standards from the International Accounting Standards Board (IASB) for some time, as IASB’s main focus is going to be on monitoring implementation of its existing standards. The scope and impact of these new standards varies.
All businesses have financial instruments, but the most significant impact of IFRS 9 will be on complex financial instruments. Most businesses who will see real accounting changes from IFRS 9 are already working on implementation. For those who need a briefing about IFRS 9, refer to our article here.
IFRS 15 does result in significant change. Each company has to consider the impact of IFRS 15. Contractual terms should be reviewed for their accounting implications. Investing now in considering the impact of IFRS 15 will save time, effort and possible surprises later. Find out more here.
IFRS 16 is regarded as being a “straightforward” standard. Put simply, it places operating leases on the balance sheet. The impact of the standard on balance sheet ratios should not be overlooked, meaning that it’s important to check that implementing the standard does not result in a breach of a debt covenant. More about IFRS 16 can be found here.