PSAK 219(dh PSAK 24) (Revised 2010) on Employee Benefit
In January 2011, Indonesian Financial Accounting Standards Board (DSAK IAI) has approved announcement of PSAK 219(dh PSAK 24) (Revised 2010).
PSAK 219(dh PSAK 24) Revised 2010 is Indonesian accounting standard on employee benefit cost, and it takes on the contents of currently applicable IAS 19, as part of convergence process of Indonesia accounting standard to international GAAP (IFRS). Two main differences with current PSAK 219(dh PSAK 24) Revised 2004 are :
Treatment for Actuarial Gain (Loss)
As with both versions of PSAK 219(dh PSAK 24), there are options whether to recognize Actuarial Gain (Loss) immediately or defer it with 10% corridor test. In the new version (Revised 2010), however, when it is recognized immediately it will not be recognized as expense in income statement, but will be recognized in Other Comprehensive Income.
More detail Disclosure Requirement in Revised 2010
Additional disclosure items in PSAK 219(dh PSAK 24) Revised 2010, among others :
[1] Funding status of post-employment program (surplus of deficit), for the last 5 years.
[2] “Experience Adjustment”, which is a component of Actuarial Gain (Loss) due from deviation of assumptions excluding Gain/Loss from changes of assumptions, for the last 5 years.
[3] Impact of 1% increase and decrease of health care cost, for Post-Employment Health Benefit liability.
PSAK 219(dh PSAK 24) (Revised 2010) will be effective January 1, 2012 without any option for early adoption. On the other hand, the international GAAP, IAS 19, is also in the Exposure Draft stage for new version, and is expected to be effective in mid-2011 at the latest. So, it is highly likely that at the time PSAK 219(dh PSAK 24) (Revised 2010) start effective in 2012, the International version, IAS 19, would have been ammended into its new version so Expense and Liability for Employee Benefits will still be different under PSAK 219(dh PSAK 24) (Indonesian GAAP) and IAS 19 (International GAAP).
For more details on the impact of this new version of PSAK24 to your financial statement, email to admin@padmaaktuaria.com.