with all the risks and benefits that related to the IFRS convergence.
12
The
first
milestone
was at
the time capital
markets were applied
in Indonesia
in
1973
(IAI,
2008).
At
that
time
the
first
time
IAI
codified
principles
and
applicable
accounting standards in Indonesia in a book PAI (Prinsip Akuntansi Indonesia).
Then,
the
second
milestone
occurred in
1984
(IAI,
2008).
At
that
time,
the
committee revised PAI fundamentally in 1973 and then codified in the book “Indonesian
Accounting Principles 1984" in order to adjust the accounting provisions of the
development of the business world.
Next in 1994, IAI again revised total of PAI in 1984 and codified in the book
"Financial Accounting Standards (SAK) as of October 1, 1994" (IAI, 2008). Since 1994,
IAI
has
also
decided
to
make
harmonization with international accounting standards in
the development of standards. In subsequent developments, there is a change from the
harmonization
of
the
adaptation,
then
the adoption in order
convergence
with
International
Financial
Reporting
Standards
(IFRS).
Full
adoption
program in
order
to
achieve convergence with IFRS is planned can be done in the next few years.
Based on Regional.Roll (2008), due to IAI’s 51st
birthday, they declared the
convergence
from SAK
(Standar
Akuntansi Keuangan)
Indonesia
into
IFRS
for
its
accounting
standard.
IAI
press
conference at
Jakarta
on
December
26,
2008
said
that
accountant standard
that converges with the IFRS
will
be applied at January 1, 2012 or
after the date. It was decided after IAI did some assessment and reviews and considered
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