Presented by:
Dr. Nanny Dewi, SE.,M.comm, CA
Head of Undergraduate Accounting Program
Faculty of Economics and Business (FEB) – Padjadjaran University
AGENDA
1.
2.
3.
4.
5.
6.
7.
Accounting Development in Indonesia
Indonesia Accounting Education
IFRS Convergence
National Qualification Framework (NQF)
International Education Standard (IES – IFAC)
Compliance on IES - IFAC Curriculum Standard
AEC: Opportunities and Challenges
Accounting Development in Indonesia
Accounting Developments in Indonesia
ERA
The Developments
Dutch Colonial • The Dutch introduced accounting into Indonesia.
Era (1610–1942) • The first recorded accounting regulation was issued in 1642 by the Dutch
Governor General of the Netherlands East Indies.
• The regulation governed the administration of cash receipts and
receivables
Sukarno Era
(1945–1966)
• U.S. academics filled the positions left vacant by the Dutch, and U.S.
accounting and auditing practices were introduced. Both Dutch and U.S.
accounting practices were used concurrently.
• The Indonesian Institute of Accountants (IIA) was established in 1957 to
guide and coordinate the activities of accountants.
Accounting Developments in Indonesia – Cont’d
ERA
Suharto Era
(1966–1998)
The Developments
• There was a transfer of accounting knowledge and skills from the head
offices of foreign firms directly to their Indonesian employees and
indirectly through their business activities
• In 1973, IIA adopted a set of accounting principles, auditing standards and
a code of professional conduct. The accounting principles were based on
the accounting guidelines published by AICPA in 1965
• A new set of IAS-based accounting standards were adopted in 1995
Post-Suharto Era
(post 1998)
• Regulations are tightened to improve financial disclosure
Millenium Era
• IFRS Convergency
Indonesia’s Financial Accounting Standard Evolution
Untill 1973
1973-1984
1984-1994
Sept, 1994
June, 2002
2008
• Indonesia was acquiring the Early Dutch Accounting, Dutch-based
legislation and accounting requirements.
• IIA ( Indonesian Institute of Accountant( espoused the U.S GAAP framework.
• Revised to coverage the developments of U.S GAAP
• IIA adopting International Accounting Standard (IAS) as the benchmark point of the
Indonesian standard that called PSAK ( Pernyataan Standard Akuntansi Keuangan).
• PSAK were improved and refined, PASK is using principle-based rather than the U.S GAAP
• PSAK convergence with IFRS
IFRS Convergence
IFRS Convergence
Phase 2 and Beyond
After 1st phase of IFRS Complete in 2012,
IASB begun the 2nd phase in 2013 – 2014
The 2nd phase, however... ITS NOT A FINAL
STAGE OF IFRS
Some IFRS / IFRIC still hasn’t yet adopted and
IASB still develop IFRS in a rapid sequence
The Gap Must Be Narrow...But It Still...
1st Phase of Convergence (3 years Gap)
PSAK (SFAS) 2012
IFRS/ IAS 1 Jan 2009
2nd Phase of Convergence (1 year Gap)
PSAK (SFAS) 2015
IFRS/IAS 1 Jan 2014
3rd and so on.....phase (No Gap)
?????
?????
Challenges of IFRS Convergence
• How do we ensure adequate resources to prepare for convergence to IFRS?
• How will we achieve the targeted date for reporting under IFRS?
• How will the IFRS convergence affect accounting financial system?
• How will the IFRS convergence affect other aspects of organisation management,
e.g. budgeting, performance measurement, compliance with covenants on
financial ratios, etc.?
• How do we explain the differences of financials prepared under IFRS to the
stakeholders, especially when there are significant differences that affect the key
performance items, such as revenues, earnings, financial ratios, etc.?
Indonesia’s Commitment Towards Converging Into IFRS
• The general approach taken by Indonesia with regard to the IFRS convergence
process is to gradually converge the local standards with IFRSs, starting with
minimizing the significant differences between the two
• Indonesia intends to analyze the readiness of industry and other constituents in
implementing the first wave of standards resulting from the convergence process
before developing the next wave of new standards.
• Indonesia aims to provide a sufficient transitional period of 3 to 4 years for new
standards while minimizing any gaps between the effective dates of new IFRSs
and new Indonesian standards
Indonesia Accounting Education and Curriculum
Level of Accounting Education in Indonesia
Vocation School in Accounting ( Vocation in High School - SMK)
Diploma III in Accounting ( Vocation in University )
Under Graduate in Accounting ( Bachelor without Accountant
(AK) privillege awarded
Advanced Accounting Education for Accounting Profession (
Accountant (Ak) awarded and Chartered Accountant (CA)
Post Graduate in Accounting
Accounting Curriculum – FEB UNPAD Undergraduate Program
Semester 1
Credit
Semester 2
Credit
Religion
2
Civics
2
Information Technology for Accounting
2
Bahasa Indonesia
2
English
3
Business Law
2
Introduction to Business
3
Introduction to Macro Economics
3
Introduction to Micro Economics
3
IIntroduction to Accounting
3
Math for Economics
3
Introduction to Management
3
Statistic I
3
Basic Pshycology
2
Elective Cource
3
Total
23
Total
16
Accounting Curriculum – FEB UNPAD Undergraduate Program
Semester 3
Credit
Semester 4
Credit
Cost Accounting
3
Intermediate Accounting II
3
Statistic II
3
Management Accounting
3
Financial Management I
3
Accounting Information System
3
Management Information Systems
3
Financial Management II
3
Intermediate Accounting I
3
Communication and Business
Presentation
2
Taxation
3
Business Ethics and Profession
2
Elective Cources
3
Taxation II
3
Elective Course
3
Total
22
Total
21
Accounting Curriculum – FEB UNPAD Undergraduate Program
Semester 5
Credit
Semester 6
Credit
Advanced Accounting
3
Auditing II
3
Auditing I
3
Internal Audit
3
Public Sector Accounting
3
Governmental Accounting
3
System Analysis and Design
3
Financial Accounting Analysis
3
Data Base Management Information
Systems
3
Special Topics of Accounting
3
Strategic Management
3
Management Control System
3
Accounting Theory
3
Accounting Capita Selecta
3
Elective Cources
3
Elective Course
Total
24
Total
24
Accounting Curriculum – FEB UNPAD Undergraduate Program
Semester 7
Credit
Research Metodology
3
Information System Audit
3
Rural Area Internship
3
Elective Cource
3
Total
12
Semester 8
Thesis
Credit
6
Total
6
Accounting Curriculum – FEB UNPAD Undergraduate Program
List of Elective Cources
Subjects
Credit
Subjects
Credit
Japanese Language
3
Accounting in Banking
3
Arabic Language
3
3
German Language
3
Sosial Accounting
Marketing Managment
France Language
3
Human Resources Manajemen
3
Macro Economy
3
Operation Management
3
Indonesian Economy
3
Internation Trade
3
Organizational Behavior
3
Quantitative Method
3
Enterprise Risk Management
3
3
Syaria Accounting
3
Forensic Accounting
Financial Management and Syaria
Banking
Risk Management
3
Business Feasibility Study
3
Oil and Gas Accounting
3
Capita Selecta in Taxation
3
3
3
Accounting Curriculum
FEB UNPAD Undergraduate Program: SUMMARY
• I48 Credits are required to complete as Accounting Bachelor ( Minimum
Credit based on Government Regulation is 144 Credits)
• 142 Credits are Class Room meeting
• 6 Credit Thesis writing ( Non Class Room Meeting)
• 1 Credit is 50 Minutes class room meeting or equal to 123 Hours Class
Room Meeting in total
Accountant Profession in Indonesia
Route to Accountancy Qualification in Indonesia
Regulator
Ministry of Education
Students
University / Higher
Institutions
Accounting Graduates
Accounting Graduates
with no professional
qualification
Regulator
Ministry of Education
Professional Accountancy
Bodies
Professional
Examination
3 Years
relevant work
experience
Membership of
Professional Accountancy
Qualified Professional
Accountants
Accountant membership in Association: ASEAN
NO
Country
Accountant
Association
2008
2010
2013
1
Brunei
BICPA
79
81
58
2
Cambodia
KICPAA
799
256
284
3
Indonesia
IAI
7.171
9.624
17.649
4
Lao PDR
LICPA
166
172
176
5
Malaysia
MIA
25.309
27.920
30.503
6
Phillipines
PICPA
20.486
21.939
22.072
7
Singapore
ICPAS
20.257
24.758
27.394
8
Thailand
FAP
49.244
60.365
57.244
9
Vietnam
VAA
7.500
8.000
8.000
MAC
502
1.232
1.492
10
Myanmar
Source: IAIglobal.or.id
Accountant and Accounting Firm in Indonesia
Registered Accountant
Public Accountant
Public Accounting Firm
Branch of Public
Accounting Firm
Source: IAIglobal.or.id
2010
49.438
2011
50.879
928
408
106
995
417
110
2012
2013
52.270
53.500
1.016
396
119
1.019
394
110
Accounting Graduate – Bachelor : Indonesia
University
State
University
Private
University
Total
Source: IAIglobal.or.id
2006
3.032
2007
3.834
2008
3.754
2009
3.234
2010
2.072
25.956
23.501
21.895
21.168
33.232
28.988
27.335
25.649
24.402
35.304
Challenges for Accounting Education: Case of Indonesia
• Due to Economic growth, the need of Professional accountant is increasing
• Globalization ( WTO and AEC) demands Accounting Education Institution to
provide education services meeting with International standard
• Business-Like at Governmental Sector implies that more Governmental
Accountants are needed
• Maximizing tax revenues of government programme drives more Accountant in
Taxation
National Quality Framework (NQF)
National Qualification Framework (NQF)
9
8
7
6
5
4
3
2
1
• National Qualification Framework / Kerangka Kualifikasi Nasional Indonesia
(KKNI) is competence qualification to integrate between class room education
and work training or work experience in order to fulfill competence and
acknowledgement by users
• Indonesian’s National Qualification Framework is designed to represent
National idenity reflected in education system and training
• NQF consists of 9 levels of qualification, from 1 to 9 level. Level 1 indictes the lowest
and 9 is the highest
• Each Qualification Level indicates degree of learning outcomes derived from
eduaction or training, both formal or informal
How are Learning Outcomes of QNF obtained?
Class Room Education
Training
Work Experiences
Independence learning
QNF learning Outcomes
Attitude and Value
Responsibility and right
Knowledge capability
Working Capability
1 2 3 4 5 6 7 8 9
Formal Education
Academic Degree
SM
P
SM
A
D1
D2
D3
S1
PR
O
S2
S3
9
U
8
MD
Profession :
7
M
6
Autodidact :
5
Certification
Experience and
Special Skill
4
3
2
1
OPERATOR
ANALIS
Industry
Job Position
AHLI
International Education Standards
Benefits of IES to Profession
• Provide consistent global framework of education
• Promote consistency and convergence in accounting education
processes
• Advance convergence in the application of technical and practice
standards
• Support greater mobility of accountants
• Contribute to co-operation among member bodies
International Education Standards
• Set benchmarks for education of worldwide accountancy
profession
• Ensure quality and consistency in accounting education
• Foundation to achieve convergence of international accounting,
auditing, public sector standards
• Different approaches around the world
• Prescribe the range of professional knowledge, professional
skills, professional values, ethics and attitudes required
• Develop an attitude of lifelong learning
International Education Standards for Professional Accountants
IES 1, Entry Requirements
IES 2, Content of Professional Accounting Education Programs
IES 3, Professional Skills
IES 4, Professional Values, Ethics and Attitudes
IES 5, Practical Experience Requirements
IES 6, Assessment of Professional Capabilities and Competence
IES 7, Continuing Professional Development
IES 8, Competence for Audit Professionals
International Education Standards
for Professional Accountants
IES 1 - Entry Requirements
• Requirements for entry to a programme of professional accounting education
and practical experience
• Aim to ensure students have background to have reasonable chance of
achieving success
IES 2 - Content of Professional Accounting Education Programs
• Prescribes knowledge and competences candidates require to function as a
professional accountant: Accounting, finance and related knowledge,
Organizational and business knowledge, IT knowledge and competences
• Degree or professional qualification
• At least two years full time study
International Education Standards
for Professional Accountants
IES 3 - Professional Skills
• Prescribes the mix of professional skills required: Intellectual skills,
Technical and functional skills, Personal skills, Interpersonal and
communication skills
• General education helps to develop these skills
IES 4 - Professional Values, Ethics and Attitudes
• Prescribes the professional values, ethics and attitudes required
• Prescribes minimum subject areas
• Acknowledge different approaches will reflect national and cultural
environment
International Education Standards
for Professional Accountants
IES 5 - Practical Experience Requirements
• Aims to ensure candidates have the necessary practical experience to become
a professional accountant
• Minimum of 3 years’ practical experience
• Guidance of experienced professional accountant
• Record of experience and review
IES 6 - Assessment of Professional Capabilities and Competence
• Final assessment before qualification as a professional accountant
• Test of theoretical knowledge and practical application of knowledge
• Reliable and valid
International Education Standards
for Professional Accountants
IES 7 - Continuing Professional Development
• Mandatory CPD for all professional accountants
• Foster commitment to lifelong learning
• Facilitate access to CPD opportunities
• Establish benchmarks for development and competence of professional
accountants
• Monitor and enforce CPD
IES8 - Competence for Audit Professionals
• Audit of historic financial information
• All IES 1-7 and additional advanced knowledge
• Graduate level
• Audit specific skills
• Application of ethics in an audit context
• Specific work experience
Compliance on IES - IFAC
Curriculum Standard
IES 2: Content of Professional Accounting
Education Programs
• The content of professional accounting education should consist of:
1. Accounting, Finance and Related Knowledge
2. Organizational and Business Knowledge
3. Information Technology Knowledge and Competences.
Do we comply with IES-IFAC Curricullum
IES- IFAC Curiculum (IES 2)
Competency
FEB UNPAD Curriculum
Subjects
Financial accounting and
reporting
Compliance
with IES
Subjects
Status
Introduction to Accounting, Financial
accounting and Advanced
Accounting
YES
Management accounting and Management Accounting and
control
Management Control System
Taxation
The accounting, finance Taxation
and related knowledge Business and commercial law Business Law
YES
YES
YES
Audit and assurance
Auditing and Internal Audit
YES
Finance and financial
management
Financial Management and
Advanced Financial Management
YES
Professional values and
ethics
Business Ethic and Profession
YES
How do we comply with IES-IFAC Curricullum
IES- IFAC Curicullum (IES 2)
Competency
The organizational and
business knowledge
FEB UNPAD Curicullum
Subjects
Subjects
Compliance with
IES
Status
Economics
Introduction to Micro and Introduction Macro
Economics
YES
Business environment
Introduction to Business
YES
Corporate governance
N/A
Business ethics
Business Ethics and Profession
YES
Financial markets
Financial Management
YES
Quantitative methods
Quantitative Method
YES
Organizational behavior
Organizational behavior ( Elective)
YES
Management and strategic decision
making
Introduction to Management and Strategic
Management
YES
Marketing
Marketing (Elective)
YES
International business and
globalization
International Trade (elective)
YES
NOT YET
How do we comply with IES-IFAC Curricullum
IES- IFAC Curicullum (IES 2)
Competency
The information
Technology
Subjects
FEB UNPAD Curicullum
Subjects
Compliance
with IES
Status
General knowledge of IT
Introduction to Information
System
YES
IT control knowledge
Information System Audit
YES
IT control competences
Information System Audit
IT user competences
System Anlysis and Design, Data
Base Management Syestem,
Management Information
System
YES
The ASEAN Economic Community (AEC):
Opportunities and Challenges
About AEC
• The ASEAN Economic Community (AEC), a regional initiative
designed to transform Southeast Asia into a more unified and
competitive market zone
• Determined to achieve higher levels of economic dynamism,
sustained prosperity, inclusive growth and integrated
development of ASEAN
• The AEC includes the 10 ASEAN countries: Singapore, Philippines,
Malaysia, Thailand, Indonesia, Vietnam, Laos, Cambodia, Brunei,
and Myanmar
AEC 4 Pillars
1. Creation of a single production and market zone.
• All Southeast Asian states retain national sovereignty but eliminate virtually all
tariffs and open their borders to a much freer flow of trade, capital, investment and
labor.
2. Enhancing the economic competitiveness of the region
• various measures designed to promote ease of doing business, including
infrastructure development projects, better consumer rights and IP laws, and
policies designed to foster competition.
3. Promoting equal economic development
• policies that are designed to bridge the development gap between the countries
richest and poorest members.
4. Enhancing integration into the world economy
• free trade agreements with external powers.
AEC: Opportunities
• Foreign Direct Investment (FDI)
• ASEAN offers a huge market
• Labour forces markets
• Development of production networks
• Allowing ASEAN to become central to global supply chains.
• Transaction costs reduction, due to simplification, harmoniziation,
and standardization trade and customs processes and procedures
AEC : Challenges
• Competitive advantages of business entities ( Productivity,
Efficiency, Quality)
• International standard of human capital qualifications
• fears relating to immigration and cultural impacts.
• free trade in goods and services
• Mobility of skilled labor
Question and Answer
Session