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Name: Harianto Pratama Putera

NPM: 022113237
Class: 6B (Konesentrasi Akuntansi Keuangan)

Tugas 1

International Financial Reporting Standards or IFRS is a set of accounting standards


developed by an independent, not-for-profit organization called the International Accounting
Standards Board (IASB). The development of IFRS came from a need to find common ground
among financial reporting standards among countries that do business together. Before there
was IFRS each country followed their own set of rules or set of financial reporting standards
usually GAAP, thus making it difficult for accountants to consolidate financial statements among
companies that are publicly traded internationally.
IFRS is a set of standardized international accounting standards that dictates and states
how certain transactions and events should be reported in financial statements. IFRS in general
relies on accounting principles more than a hard set rules that each company has to follow
which in contrast, is a big difference when compared to the GAAP which most publically traded
companies use when making financial statements. IFRS gives financial mangers greater
freedom to prepare their companies financial statements.
IFRS has become the global standard for financial reporting of public entities.
Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed
companies, although approximately 90 countries have fully conformed with IFRS as
promulgated by the IASB and include a statement acknowledging such conformity in audit
reports. Other countries, including Canada and Korea, are expected to transition to IFRS by
2011. Mexico will require IFRS for all listed companies starting in 2012. Japan has introduced a
roadmap for adoption that it will decide on in 2012 (with a proposed adoption date of 2015 or
2016) and is permitting certain qualifying domestic companies to apply IFRS from fiscal years
ending on or after March 31, 2010. Still other countries have plans to converge their national
standards with IFRS.
The IFRS refers to the entire body of AISB pronouncements including standards and
interpretations approved by the IASB and IASs and SIC interpretations approved by the
predecessor International Accounting Standards Committee.

The development of IFRS is broken down into 6 parts,

Part 1: Setting the Agenda


The IASB (International Accounting Standards Board) looks at the needs of the investors
to establish areas that need attention. This part of the development process is also known as
establishing a work plan, reviewing and reevaluating what needs to be added to IFRS agenda.
The IASB considers the following

the relevance to users of the information and the reliability of information that could be
provided;

whether existing guidance is available;

the possibility of increasing convergence;

the quality of the standard to be developed; and

resource constraints.

In attempt to identify key aspects the IASB questions its staff to indicate issues that need
further review and attention, that can be added to future agendas.
New issues also arise from a change in the IASBs Conceptual Framework, furthermore the
IASB considers new agendas from other standard setters such as the IFRS Advisory Council
and the IFRS Interpretations Committee, and staff research. Also IASB receives requests to edit
or adjust already publicized materials from 3rd party groups that have common issues that are
raised thus making the IASB consider putting them in into the agenda.
IASB meetings, before any new standard is put into the agenda the IASB meets with the
IFRS advisory council and accounting standard-setting bodies before taking on any new
projects. The IASB also considers convergence initiatives among other accounting standardsetters.
In order to put any conclusions from these meetings and before adding anything to the
agenda the IASB holds a vote in their public meetings, in order it to pass each agenda item
needs a majority vote.

Part 2: Planning the Project.


In this step the IASB considers whether or not to conduct a certain project alone or do a
joint venture with another standard-setter. After gauging interest and the nature of certain issues
the IASB most likely will form a consultative group. Groups give the International Accounting
Standards Board (IASB) access to additional practical experience and expertise. The IASB
normally establishes consultative groups for its major projects. The Staff is handpicked by two
most senior members of the technical staff the Director of Technical Activities and the Director
of research. From there the project manager makes a project plan under the supervision of said
directors. In addition the team may include other members of standard-setting groups as
deemed necessary by the IASB.

Part 3: Development and Publication of a discussion paper


In this step, albeit not mandatory, the IASB publishes a discussion paper as its first
publication on an issue to explain and solicit feedback from constituents. If the IASB decide not
to publish a discussion paper they will explain why.
Normally a discussion paper includes the following

a comprehensive overview of the issue;

possible approaches in addressing the issue;

the preliminary views of its authors or the IASB; and

an invitation to comment

This method might differ if another accounting standard-setter writes and develops the research
paper
Discussion papers are written as a result of either of the following

a research project being conducted by another accounting standard-setter; or

as the first stage of an active agenda project carried out by the IASB.

If the discussion paper is a result of a research project being conducted by another


accounting standard setter, the discussion paper is drafted by another accounting standard
setter then published be the IASB. Issues that are written and brought up inside said discussion
paper are later reviewed and discussed in IASB meetings, and publication of such papers needs
a majority vote by the IASB.
If the discussion paper has views of more than one author the IASB must review the
draft discussion paper to ensure the analysis is proper and merits public invitation for
comments. For discussion papers related to agenda items that are under IASB jurisdiction and
direction the IASB develops the paper or its views on the basis deducted from staff research
and recommendations, as well as suggestions made by the IFRS Advisory Council,
Consultative groups and standard-setters and presentations from invited parties.
All technical issues in the draft paper are discussed in public sessions.

Part 4: Development and Publication of an Exposure Draft.


Publication of an exposure draft is a mandatory step in due process.
Regardless of whether or not a discussion paper is published by the IASB, an exposure draft is
the main communication line for consulting with the public. An exposure draft is totally different
compared to a discussion paper, an exposure draft is a proposal in a form of a proposed
standard or an amendment to an existing standard.
The development of an exposure draft begins with three things the IASB considers:

issues on the basis of staff research and recommendations;

comments received on any Discussion Paper; and

Suggestions made by the IFRS Advisory Council, Consultative Groups and accounting
standard-setters, and arising from public education sessions.

After deciding firmly on solutions to all issues at its meetings, the IASB instructs the staff to draft
the Exposure draft. When the draft is finished and the IASB has accepted it (by voting on it) the
IASB publishes it for public comment.

Part 5: Development and publication of an IFRS


The development of an IFRS is done during IASB meetings, when the IASB reviews all
comments that have been received from the exposure draft.
After all issues that came up from the exposure draft the IASB considers whether or not to republish a second exposure draft to highlight all changes or revised propels that were an issue in
the first exposure draft. In considering a re-exposure draft the IASB considers:

identifying substantial issues that emerged during the comment period on the Exposure
Draft that it had not previously considered;

assessing the evidence that it has considered;

evaluates whether it has sufficiently understood the issues and actively sought the views
of constituents; and

considers whether the various viewpoints were aired in the Exposure Draft and
adequately discussed and reviewed in the basis for conclusions.

Drafting the IFRS: If the IASB finds that publishing a re-exposure is needed than all steps in
the due process are followed from the exposure draft and submitted for another round of public
comments. This decision is reached in IASB meetings. When all parties are satisfied with the
draft there are no more issues with it, the IASB instructs the staff to draft the IFRS

Pre-Ballot Draft: A pre-ballot draft is usually subject to external review, normally by the IFRIC.
Shortly before the IASB ballots the Standard, a near-final draft is posted on eIFRS.
Finally, after the due process is completed, all outstanding issues are resolved, and the IASB
members have balloted in favor of publication, the IFRS is issued.

Part 6: Procedures after the IFRS is issued.


After and IFRS is issued the IASB holds regular meetings with 3 rd party bodies and other
standard-setting bodies to help with unanticipated issues that arose with the publication of the
IFRS. Meaning the impact, the results and underlying issues that came up because of the
implementation of the IFRS.
The IFRS foundation also holds regular educational events to ensure the proper
implementation and understanding and consistency in the application of the IFRS.
After a certain amount of time the IASB may implement studies if one of the following occurs:

its review of the IFRSs application;

changes in the financial reporting environment and regulatory requirements; and

comments by the IFRS Advisory Council, the IFRS Interpretations Committee, standardsetters and constituents about the quality of the IFRS.

Those studies may result in items being added to the IASBs work plan.

These steps are just a fundamental understanding of how one IFRS is developed and
implemented. Its a basic understanding of how IFRS came to be.

Interpretation of IFRS and Maintenance:


In this part the IFRS is maintained by the IFRS maintenance committee (interpretations
committee) and the responsibilities of this committee include the identification of divergent
practices that have emerged for accounting for particular transactions, cases of doubt about the
appropriate accounting treatment for a particular circumstance or concerns expressed by
investors about poorly specified disclosure requirements.
The objective of this committee is to interpret applications of the IFRS, provide guidance
on reporting issues and other tasks that are assigned by the IASB. Both bodies see the
importance of achieving a balance between the principle-based approaches of IFRS and
providing guidance with sufficient detail to ensure that it is useful and practical.
Maintenance of the IFRS and the procedure used by the IFRS interpretations committee
is called due process. Due process has different stages that occur before an IFRS is amended
or an issue is added to the agenda. These processes include:
a) Identification of matters. All parties that are interested in amending or proposing a
new IFRS are invited to identify an issue and bring it up in public meetings
b) Proposed Agenda Items, in this stage the IFRS committee debate whether or not to
add items that were identified in the previous stage to the IFRS agenda. When debating these
issues the committee considers the effect of the proposed issue, the betterment of the reporting
standard through deduction or change of method in the financial report, whether or not the issue
can be resolved within the confines of the conceptual framework of financial reporting and lastly
whether or not the issue can be resolved in a minimum scope so that the committee doesnt
waste time with one issue. Issues that are do not make it to the agenda are published in what
we call a constative period where the issue that has been rejected is published as rejected.
c) Meetings and Voting, when an issue has made it to this stage the committee will
hold meetings specifically to talk about and go over the specific issue. These meetings follow
IASB standard and is usually held via teleconference. If a certain issue has reached its peak the
committee will vote whether or not to put it on the IFRS agenda
d) Development of minor or narrow-scope amendments to Standards, in this stage
the committee may update and improve already known standard without IFRS advisory council.
The committee will consider first drafting an exposure draft in order to summarize its proposed
amendments.
e) Development of Interpretations
Interpretations are developed by the Interpretations Committee but, because they are
part of IFRS, they must be ratified by the IASB.
Three members of the IASB usually attend meetings of the Interpretations Committee. In
addition, a report of each meeting of the Interpretations Committee is presented to the IASB at
one of its public meetings. Interpretations are designed for general application and are not
issued to resolve matters that are specific to a particular entity.

A draft Interpretation is developed on which the Interpretations Committee votes. Voting


takes place at a public meeting. General agreement on the draft Interpretation is achieved when
no more than four members have voted against the proposal. Before the interpretation is ratified
there is a comment and deliberation period in order to receive feedback and comments from
interested parties. final Interpretation includes:
a. a summary of the accounting issues identified;
b. the agreement reached on the appropriate accounting;
c. references to relevant Standards, parts of the Conceptual Framework and other
pronouncements that have been drawn upon to support the agreement; and
d. the effective date and transition provisions.
The reasons for the Interpretation are set out in a Basis for Conclusions.
When the Interpretations Committee has reached a consensus on an Interpretation, the
Interpretation is put to the IASB for ratification (in a public meeting) before being issued. When
the Interpretations Committee has balloted the Interpretation it is submitted to the IASB for
ratification. Ratification of an Interpretation takes place in a public meeting of the IASB and
requires a supermajority, the same level of support by IASB members as is required for a new
or amended Standard. The IASB votes on the Interpretation as submitted by the Interpretations
Committee. If an Interpretation is not approved by the IASB, the IASB provides the
Interpretations Committee with reasons for the objection. On the basis of these reasons, the
IASB will decide whether the matter should be referred back to the Interpretations Committee,
whether it should be added to its own agenda or that no further action should be taken.
Ratified Interpretations are issued by the IASB.

People behind the IFRS and IASB.


Each organization is run by certain people and directed by a board of members, IFRS is
no different. Here we will see the background and what he/she has done for the betterment of
the IFRS.
Wayne Upton: IFRS interpertations committee international director, IASB
Mr. Upton was designated as Director of International Activities in April 2008.
In that role, he continues his work assisting both major and transitional
economies in making the transition to IFRSs and implementing IFRSs. He also
handles special projects for the Board.
Mr. Upton is a frequent speaker at accounting conferences and has written a
number of articles on accounting topics. His articles have appeared in The
Journal of Accountancy, Best's Review, Compensation and Benefits
Management, The Journal of Reinsurance and in publications of the Australian
Accounting Research Foundation, the Financial Accounting Standards Board, the International
Accounting Standards Committee, the ACCA (United Kingdom), and the Society of Actuaries.
He is also the author of three FASB Special Reports. He is a 1972 graduate of Regis University
in Denver.

Tony de Bell
Global Accounting Consulting Services Leadership Team
PwC
United Kingdom
As global consultant towards accounting services Mr. Bell helps the IFRS
committee in overseeing how certain issues are dealt with. Tony is a senior
partner in PwC's Global Accounting Services Group a member of PwCs IFRS
Leadership Team. He also leads the global accounting consulting team dealing
with revenue and liabilities, including income taxes, stock compensation and
employee benefits.
Tony has worked in accounting consulting services for twelve years, before
which he served a variety of commercial and industrial clients as an auditor. He
spent eighteen months in 2003 and 2004 seconded to the US National Office in New Jersey and
has led PwCs global revenue and liabilities accounting technical team since 2006. Tony de Bell
often writes about IFRS topics and consults on multiple accounting issues.

Reinhard Dotzlaw
Global IFRS Panel
KPMG
Canada
Reinhad Dotzlaw was appointed to the IFRS Interpretations Committee
in May 2013 for a term of three years. Reinhard is the National Managing
Partner, Audit Professional Practice for KPMG Canada. Reinhard currently is a
member of the Financial Reporting Advisory Committee of the Canadian
Securities Administrators (CSA), which serves as a sounding board and
provides advice to the CSAs Chief Accountants Committee. He was a member
of the Emerging Issues Committee of the CICAs Accounting Standards Board
prior to its disbandment upon transition to IFRS, which provided timely guidance
on emerging accounting issues. He and his firm oversee multiple accounting issues that range
from auditing standards to professional communications. His insight into Canadian markets and
north American accounting standards make him an invaluable part of the IFRS committee

Carl Douglas
Corporate Controller
CCR Group
Brazil
Carl Douglas was appointed to the IFRS Committee in July 2014 for a
term of 3 years. Carl is Corporate Controller at CCR Group since 2007, a listed
Brazilian based international investor and operator of transportation
infrastructure, such as toll roads, subways, airports, boats and related business.
He is responsible for corporate accounting practices, preparation of financial
statements and obtaining its certification from independent auditors and
approval from audit committee and board Carl was Professor of Accounting and Controlling and
Coordinator of under graduation courses in business and in MBA programme from 2005 to
2008, as well as independent accounting technical quality assurance at a Brazilian publisher.
He was speaker in several accounting and business conferences. He studied business
administration and did MBA focused in Accounting and Finance at University of So Paulo /
FIPECAFI, with extension at Euromed Ecole de Management Marseille France. He also did
M.Sc. in Accounting at So Paulos Catholic University. As a former Professor of accounting
Carl Douglas has a key part of the IFRS committee knowing the south American markets and
accounting standards that have been used there.

Bonnie Van Etten


Head of Fiat and Chrysler Group Global Technical Accounting and Accounting Research
Chrysler Group LLC, United States
Bonnie Van Etten was named Head of Fiat and Chrysler Group
Global Technical Accounting and Accounting Research in June 2013. Van Etten
joined Chrysler Group LLC in December 2010 with initial responsibilities over
Technical Accounting and Tax Accounting. In January 2012, her responsibilities
were expanded to include Chrysler Group Employee Benefits Finance. In June
2013, her responsibilities were expanded to include Technical Accounting and
Accounting Research for Fiat S.p.A. as well as Chrysler Group Special
Accounting Operations, which includes operational accounting activities for
treasury, restructuring, share-based compensation, and goodwill and intangible valuations. Van
Etten is a CPA and holds a bachelors degree in Finance from Anderson University in Anderson,
Indiana. Her Expertise in American markets is essential the the implementation of the IFRS into
American companies. The conversion from GAAP to IFRS for most American companies can be
hard but with Bonnie Van Etten the conversion can be made a lot smoother with her
understanding of American markets.

Mikael Hagstrm
Senior Vice President & Head of Corporate Financial Reporting
Volvo Group
Sweden
Was appointed to the IFRS Interpretations Committee in July 2014 for a
term of three years. Mikael Hagstrm has worked since 2006 as Senior Vice
President & Head of Corporate Financial Reporting in the Volvo Group. He is
responsible for Financial Reporting and Internal Control. Previous to this, Mikael
was Head of Corporate Accounting and has also worked for Business Control
within the Volvo Group.
Mikael has been chairman of the Swedish Enterprise Accounting Group (SEAG) since 2007,
and will be member of IFRIC from July 2014.

Jongsoo Han
Member of the Korea Accounting Standards Board (KASB)
Korea
Was appointed to the IFRS Interpretations Committee in July 2015 for a
term of three years. He has more than 25 years experience from practice and
academia in financial accounting and auditing, having also chaired and been a
member of many committees and organisations focused on financial reporting.
He is a Board Member of the Korea Accounting Standards Board (KASB) and
Chairman of the Korea Institute of CPAs Accounting Research Committee. He
is a Professor at Ewha Womans University in Seoul, Korea, and has written
many papers on IFRS.
Mr. Han has a PhD in Accounting from the University of Pittsburgh, US, and is a qualified
Certified Public Accountant in Korea.

Feilong Li
Executive Director, Executive Vice President & CFO
China Oil Services Limited
People's Republic of China
Was appointed to the IFRS Interpretations Committee in July 2010 for a term
of three years. Feilong Li is controller of CNOOC Limited, China's largest
producer of offshore crude oil and natural gas with a dual-listing in Hong Kong
and the United States. He is leader of the SOX404 implementation team and the
qualified accountant of CNOOC Limited for HKEx listing. He has been a member
of Financial Accounting Standards Advisory Council (FASAC) since 2008.He is a
board member of Petroleum Subcommittee of China Association of General
Accountant and vice principal of China Petroleum and Chemical Statistics Association.He led
Accounting/Finance/Taxation Team of CNOOC IPO Working Group back in 1999.

Bruce Mackenzie
Managing Partner
W Consulting International
South Africa
Was appointed to the IFRS Interpretations Committee in July 2014 for a
term of three years. Bruce is the Managing Partner of W Consulting
International, a global IFRS Advisory Firm. He is a member of the Financial
Reporting Standards Committee of South Africa, and the IASB SME
Implementation Group. He is also a registered IFRS Advisor with the
Johannesburg Stock Exchange. Bruce qualified as a Chartered Accountant and
Registered Auditor in South Africa. He worked in the Deloitte IFRS Centre of
Excellence in London before moving to Barclays Capital. Currently he consults with
multinationals, professional firms and institutes on the implementation and application of IFRS.

John O'Grady
Asia-Pacific IFRS Leader
Ernst & Young
Australia
Was appointed to the IFRS Interpretations Committee in July 2012 in a
term of three years. He is an Assurance Partner at EY, based in Hong Kong,
China and Melbourne, Australia. He is the Leader of EY's Asia Pacific
Professional Practice Group (Assurance Quality function), which he has led
since 1 July 2013. Prior to that time he led the Asia Pacific Area (2010-13) and
Oceania Area IFRS Groups (2005-10). John is also a member of EY's Global
IFRS Policy Committee, which is responsible for recommending EY policy
around IFRS application, reporting and interpretation globally. John has overall
responsibility for Professional Practice consultations (including IFRS) within EY
across Asia Pacific, and leads a team of Professional Practice personnel across 24 countries.
He is a graduate of University College Dublin and a Fellow of the Institutes of Chartered
Accountants in Australia and in Ireland.

Sandra Peters
Head of Financial Reporting Policy
CFA Institute
United States
Was appointed to the IFRS Interpretations Committee in July 2012 for a
term of three years. She is Head of Financial Reporting Policy at CFA Institute,
where she leads a global team analyzing and developing policy positions related
to significant financial reporting, accounting and auditing issues worldwide. Prior
to this she was Vice President and Corporate Controller at insurance provider
MetLife. Ms. Peters began her career at KPMG, where she rose to the level of
Partner specializing in Financial Services. She is a graduate of the University of Nebraska and
holds an MBA from Indiana University. She is a Chartered Financial Analyst and Certified Public
Accountant.

Charlotte Pissaridou
Managing Director
Goldman Sachs
United Kingdom
Was appointed to the IFRS Interpretations Committee in July 2011 for a
term of 3 years. Charlotte is a Managing Director at Goldman Sachs
International where she manages the Accounting Policy Team for Europe, the
Middle East and Africa. She is also a member of the Client Accounting Review
Team. Charlotte joined Goldman Sachs in 2004; prior to joining the firm,
Charlotte worked at Nomura International for three years and Swiss Re Life &
Health for four years. She qualified as a chartered accountant while working for
Coopers & Lybrand in London and in Moscow. Charlotte currently chairs the
Accounting Committee for AFME (the Association for Financial Markets in Europe).

Dr Martin Schloemer
Accounting Principles and Policies
Bayer AG
Germany
Was appointed to the IFRS Interpretations Committee in May 2013 for a
term of three years.Is Head of Accounting Principles and Policies at Bayer
AG. In this central governance function he is responsible for a uniform
application of relevant accounting rules across all subgroups. Before this he
served as a consultant on implementation projects for new ERP
components. Dr Schloemer started his professional career with a Traineeship at Deutsche Bank
AG. He studied business administration at the RWTH Aachen University and the University
College in Dublin. Furthermore he spends 4 years as assistant professor teaching external and
internal accounting at RWTH Aachen University. In parallel of his academic duties he worked on
selected projects in investment banking. Dr Schloemer is member of several national and
international Committees, among these are the Accounting Standards Committee of Germany
and the Sounding Board of Business Europe

Robert Uhl
Partner,
Deloitte & Touche LLP
United States
Bob Uhl is a partner at Deloitte & Touche LLP and National Director of
Accounting Standards and Communications. Bob is also the U.S. leader on
Deloittes Global IFRS Leadership Team.His responsibilities include formulating
policies on accounting matters under both US and international accounting
standards, and communicating with accounting standard setters, Deloitte
professionals, clients and other parties interested in financial reporting.Bob is
currently a member of the Financial Accounting Standard Boards Emerging
Issues Task Force. He also has been active in standard setting including
participation in FASB, AICPA, and IASB working groups and other standard
setting forums. Bob is a frequent presenter on U.S. and international accounting topics at
conferences and on webcasts.From 1997 to 1999, Bob was a Professional Accounting Fellow in
the Office of the Chief Accountant of the Securities and Exchange Commission. In addition,
previously he has been a Managing Director at Goldman Sachs & Co., and held roles in
Deloittes Accounting Consultation Group and Stamford, Connecticut audit practice.Bob is a
graduate from the University at Albany.

Andrew Watchman
Executive Director of International Financial Reporting
Grant Thornton
United Kingdom
Was appointed to the IFRS Interpretations Committee in May 2013 for a
term of three years. Andrew is the global IFRS leader for Grant Thornton
International and heads its London-based IFRS team. Andrews team promotes
high quality, consistent application of IFRS throughout the Grant Thornton
network, including a consultation service that addresses technical questions
from around the world. Andrew has authored or overseen numerous external
and internal publications on the practical application of IFRSs, leads Grant Thorntons global
IFRS training programme and chairs two international working groups of member firm IFRS
experts. Andrew and his team also lead the development of Grant Thorntons responses to
IASB proposals. Prior to joining Grant Thornton in 2005, Andrew spent two years as
Accountancy Adviser to the UKs Department of Trade and Industry (DTI), and fourteen years
with Arthur Andersen up to partner level. The DTI role involved providing expert advice on public
policy in financial reporting and on all aspects of the transition to IFRSs in the UK.

Summary: To summarize the development of an IFRS is a tedious and time consuming job.
The IFRS committee is a diverse set of people who are appointed because of their background
and technical expertise in economy and accounting. The development process consist of 6
critical stages that help regulate new IFRS agendas. With the help of the interpretation
committee these new agendas turn into new IFRS for the greater good of accounting standards
around the world.