IFRS 9 will become effective in Indonesia on 1 January 2020 which poses a huge challenge for busy executives. Indonesian banks will have to adopt an expected credit loss model instead of an incurred loss model. This necessitates the application of several forward-looking scenarios which most local banks will have to develop from scratch. Furthermore, meeting data requirements and respective data quality will be one of the most significant challenges in accounting that banks in Indonesia will have to grapple with in years to come. This requires a significant amount of management attention and resources to implement the new standard, locally known as PSAK 71.
In his presentation, Dr. Denis Diop, Managing Director & EVP, APAC at FERNBACH, highlighted how FERNBACH's experience and successful IFRS 9 implementations in other markets as well as BDO's local expertise will help busy executives to avoid pitfalls and how to implement the new IFRS 9/PSAK 71 standard successfully.