DOI: 10.5176/2251-1997_AF-63
Authors: Rima Rachmawati
Abstract:
State of Indonesia has a structure which is dominated by economic actors or small business and medium enterprise (SME’s), nearly 90{6e6090cdd558c53a8bc18225ef4499fead9160abd3419ad4f137e902b483c465} of companies in Indonesia as SME’s. Along with the decision of Indonesian Institute of Accountants (IAI) to establish IFRS for SME’s date of January1, 2010 and entered into force for 2011, then of course SME’s will make adjustments in terms of presentation of financial statement in this 2011. Rural banks as one of the SME’s had established themselves to use the IFRS for SME’s via the issuance of the accounting guidelines for Rural Banks on July 1, 2010 based on Indonesian Bank Circular Letter No.12/14/DKBU/2010 Accounting Guidelines on the Implementation of Rural Banks.
In 2011 it began to apply IFRS for SME’s in Rural Banks and Rural Banks Accounting Guidelines, then in 2011 there must be adjustments on financial transactions with reference to the financial statement line items as described in the accounting guidelines for Rural Banks.
This paper will explain how the adjustment are made, starting from the background of IFRS for SME’s in Indonesia, the reason for Rural Banks to use IFRS for SME’s and public IFRS differences with IFRS for SME’s in Indonesia.
Keywords: IFRS for SME’s, Rural Banks, Accounting Guidelines
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