Implementing IFRS for SMEs and Improving Co-Ops Governance (2024) (Copy)

The workshop name in Bahasa is “Lokakarya Perbaikan Tata Kelola Usaha Simpan Pinjam Koperasi Paska Verifikasi lapangan & Penerapan SAK-EP Di Tahun 2025”

Workshop Recap

We ran the workshops in 3 batches in Bali, Jakarta, and Online. We managed to get 150+ businesses to join us in this workshop. We are going to have a check-in session by the end of January 2025 to answer follow up questions after the participants brought back the knowledges to their co-operatives.

Background

Two regulations can potentially affect Indonesian cooperatives in 2025 greatly, and this workshop aimed to help cooperatives understand the implications of those regulations so that they can prepare their business to comply with them next year.

1. In 2024, the Ministry of Cooperatives and SMEs of The Republic of Indonesia ran a field verification to determine whether a cooperative is considered an open loop or closed loop cooperative (according to Minister of Co-operatives and SMEs Regulation No. 8 / 2023). Whether a cooperative is considered an open loop or closed loop cooperative would determine what kind of business it can run, and who will regulate them.

2. According to the Ministerial Regulation of Minister of Cooperatives and SMEs No. 2 / 2024, co-operatives need to start implementing SAK-EP (IFRS for SMEs Accounting Standard that is already adapted to Indonesia’s context) in 2025. This workshop aimed to prepare the cooperative to transition from their current accounting standard to the new SAK-EP.

Workshop Content

Understanding the next steps after being classified as open loop or closed loop

1. Implementing Good Governance Standards as per Minister of Co-operatives and SMEs Regulation No. 8 / 2023

2. Getting to know SAK-EP (IFRS for SMEs)

   1. New financial reports format: balance sheet, profit/ loss, and comprehensive income statement, consolidated financial statements.

   2. Differences between the current accounting standard vs SAK-EP

3. Financial instruments:

   1. Basic measurements

   2. Subsequent measurements

   3. Derecognition of a financial asset & liability

4. Non-Financial instruments

   1. Basic measurements

   2. Subsequent measurements

   3. Derecognition of a financial asset & liability

5. Stress Test

   1. Current Loan & Saving Features

      1. Calculate Effective Interest Rate

      2. See if it complies with current regulations

   2. Current Loan Performance

      1. Calculate CKPN that Cooperatives need to prepare

6. Risk Management

7. Product Development Framework

   1. Case Study: Maintain/ Improve Profit when there’s a maximum cap of 24% effective interest rate on loans

8. Transitioning to IFRS for SMEs Accounting Standard