Financial Reporting Standards

Financial Reporting StandardsFinancial Reporting Standards (FRS) lay down the guidelines and principles for the preparation of financial reports. They essentially determine the nature and quantity of information that should be made available to users of financial statements such as investors and creditors, in order to help them make informed decisions. FRS reach beyond the understanding of particular accounting regulations, allowing analysts to evaluate the potential consequences of transactions and key elements in financial statements.


Overview of FRS in Indonesia

FRS in Indonesia are issued and regulated by the Indonesian Financial Accounting Standards Board (DSAK-IAI), which aligns these standards with International Financial Reporting Standards (IFRS). This alignment enhances the credibility and comparability of financial statements in the global marketplace.


Convergence with IFRS

Indonesia has been actively converging its FRS with IFRS to harmonize accounting practices and facilitate international investments. This convergence process has involved the gradual adoption of IFRS for specific industries and entities, making financial reporting more consistent with global standards.


Financial Reporting Framework

FRS in Indonesia follow a structured framework that includes comprehensive guidelines for various aspects of financial reporting, such as recognition, measurement, presentation, and disclosure of financial information. The framework covers a wide range of entities, including listed companies, non-listed public companies, and small and medium-sized enterprises (SMEs).


Key Components of FRS

FRS in Indonesia encompass key components like the statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, and accompanying notes. These components provide a holistic view of an entity’s financial performance and position.


Regulatory Oversight

The Indonesian Financial Services Authority (OJK) oversees the implementation of FRS in the country. They ensure that entities comply with FRS and maintain the highest standards of financial reporting.



Financial Reporting Standards in Indonesia are integral to fostering transparency, accountability, and international competitiveness in the business landscape. By aligning with global standards and upholding rigorous regulatory oversight, Indonesia continues to enhance its position in the global financial market.