EMPLOYING FINANCIAL ACCOUNTING STANDARDS FOR ENTITIES WITHOUT PUBLIC ACCOUNTABILITY FOR AUDITING
Abstract: Financial Accounting
Standards for Entities Without Public Accountability (FAS-EWPA) is a financial
accounting standards issued by The Indonesian Institute of Accountants or
Ikatan Akuntan Indonesia (IAI) and endorsed by the Financial Accounting
Standards Board of Indonesian Accountants or Dewan Standar Akuntansi Keuangan
Ikatan Akuntan Indonesia (DSAK IAI) and intended for small and medium
enterprises. The underlying priciple of IAI in issuing this particular
standards is the attempt to facilitate small and medium enterprises in
arranging their financial reports. If this standard is not issued, they have to
follow the new FAS (which is stage of adopting IFRS – full convergence 2012) to
arrange their financial reports. The application of this FAS-EWPA based IFRS is
relatively more complex and expensive for small and medium enterprises.
FAS-EWPA adopted some parts of IFRS (International Financial Reporting
Standards) for small-medium enterprises (IFRS for Small-Medium-sized
Entities/SMEs). This study aims to describe the layout of the difference measurement,
assessment, report and the implementation of auditing standards between
FAS-IFRS and FAS-EWPA. This study employed descriptive qualitative technique of
data analysis by reviewing literature and analysing the field concerning with
the implementation of Financial Accounting Standards Statements (FASS) and
FAS-EWPA. Specifically, the secondary data of this study are FAS-IFRS and
FAS-EWPA. The findings shows that there is a difference presentation and
disclosure of financial statements between entities which report using FAS-IFRS
and FAS-EWPA. Therefore the perceived program and audit procedures will be
different because it will be tailored to the presentation and objectives the
audit, suppose that in the implementation of FASS and EWPA, there is a difference
in the assertions about the disclosure/presentation. For other assertions about
existence, completeness, rights and obligations as well as assessment and
allocation, basically, between FASS and EWPA, they have a common concept. While
in presentation assertions as has been described earlier, the FAS-EWPA has a
simpler form than with FASS, therefore there is a definitely difference in
terms of the presentation between the two.
Penulis: Akie Rusaktiva, Adri
Putra Nugraha
Kode Jurnal: jpakuntansidd120590
