This
statement aims to regulate the recognition and measurement of provisions,
contingent liabilities and contingent assets, as well as to ensure that
sufficient information is disclosed in the notes to the financial statements.
Thus, the user can understand the nature, timing, and amount related to such
information.
Scope
of this Statement should be applied by all enterprises in accounting for
provisions, contingent liabilities and contingent assets, except for estimated
liabilities and contingencies arising from:
(A)
financial instruments are recorded at fair value;
(B)
eksekutori contract, unless the contract is burdensome (Onerous);
(C)
contracts with policyholders for insurance companies, and
(D)
the things that have been covered in other GAAP.
This
statement applies to financial instruments (including guarantees) that are not
recorded at fair value.
This
statement applies to the preparation and presentation of financial statements
covering periods beginning on or after January 1, 2001. Earlier application is
encouraged. If the company applies this Standard for a period beginning before
1 January 2001, the company had to declare it.
This
statement replaces SFAS No. 8. on Subsequent Events, on the governing
contingencies. (Source Indonesian Institute of Accountants)
