PSAK 54 Accounting for Troubled Debt Restructuring

This Statement addresses financial accounting and reporting standards restructuring of troubled debts, both for debtors and creditors. This statement does not cover the accounting for the allowance for doubtful accounts and do not set the estimation methods for doubtful accounts.

This statement is applicable to accounting restructuring troubled debts. This statement is not set:

(A) Employee Benefits as provided in SFAS No.. 24 (Revised 2004),

(B) Rent as provided in SFAS No.. 30 (Revised 2007),

(C) Accounting for Certain Investments in Debt Securities that have been set in PSAK No. 50,

(D) Quasi-Reorganization which had been set in PSAK No. 51 For purposes of this Statement, restructuring of debts is not always the restructuring of troubled debts due to the condition of the debtor is experiencing financial difficulties.

The application of this Statement should be applied prospectively. The financial statements for periods prior to the enactment of this statement does not need to be restated (restated).

This statement applies to the restructuring transactions that occur after the date of ratification. Earlier application is encouraged, having regard to paragraph 40.

SFAS 54 Accounting for Troubled Debt Restructuring This Statement addresses financial accounting and reporting standards restructuring of troubled debts, both for debtors and creditors. This statement does not cover the accounting for the allowance for doubtful accounts and do not set the estimation methods for doubtful accounts.

This statement is applicable to accounting restructuring troubled debts. This statement is not set:

(A) Employee Benefits as provided in SFAS No.. 24 (Revised 2004),

(B) Rent as provided in SFAS No.. 30 (Revised 2007),

(C) Accounting for Certain Investments in Debt Securities that have been set in PSAK No.. 50,

(D) Quasi-Reorganization which had been set in PSAK No. 51.

For purposes of this Statement, restructuring of debts is not always the restructuring of troubled debts due to the condition of the debtor is experiencing financial difficulties.

The application of this Statement should be applied prospectively. The financial statements for periods prior to the enactment of this statement does not need to be restated (restated).

This statement applies to the restructuring transactions that occur after the date of ratification. Earlier application is encouraged, having regard to paragraph 40.

 (Source Indonesian Institute of Accountants)