OJK Guides Banks on Application of PSAK-71 on Financial Instruments
OJK issued guidelines for accounting treatment of the application of Statement of Financial Accounting Standards (PSAK) 71 on financial instruments and PSAK 68 on fair value measurement. OJK has requested banks to comply with and implement OJK Regulation No. 11/POJK.03/2020 and to proactively identify debtors that have been affected by the COVID-19 outbreak. OJK had published this regulation in March 2020 and the regulation covers economic policy for debtors to support the performance and growth of debtors, including micro, small, and medium enterprises debtors, impacted by the COVID-19 pandemic. The regulation consists of policies related to asset quality determination and credit or "financing" restructuring.
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Keywords: Asia Pacific, Indonesia, Banking, COVID-19, IFRS 9, PSAK-71, Financial Instruments, Accounting, SME, OJK
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