World Bank2013-03-212013-03-212011-04https://hdl.handle.net/10986/12845This report is part of a joint initiative of the World Bank and IMF to prepare Reports on the Observance of Standards and Codes (ROSC). The ROSC Accounting and Auditing review for Indonesia mainly focuses on the strengths and weaknesses of the accounting and auditing environment that influences the quality of corporate financial reporting. It involves both a review of mandatory requirements and actual practices. The reference points of international standards used in this report are International Financial Reporting Standards (IFRS) International Standards on Auditing (ISA) and international experience and good practice in the field of accounting and auditing regulation. The methodology used to conduct the analytical work for preparing this report includes application of the ROSC Accounting and Auditing diagnostic review. Developed by the World Bank, the diagnostic template was complemented by a comprehensive due diligence exercise. The World Bank ROSC team met with key stakeholders involved in accounting and auditing and corporate reporting in Indonesia. Also, several discussion forums were held with groups of preparers and auditors of financial statements, investors, and financial analysts.en-USCC BY 3.0 IGOACCOUNTACCOUNTABILITYACCOUNTANCYACCOUNTANTACCOUNTANTSACCOUNTINGACCOUNTING CURRICULAACCOUNTING CURRICULUMACCOUNTING FIRMACCOUNTING FIRMSACCOUNTING PERIODACCOUNTING POLICIESACCOUNTING PRINCIPLESACCOUNTING STANDARDACCOUNTING STANDARDSACCOUNTSADEQUATE DISCLOSUREATTESTATIONAUDIT COMMITTEEAUDIT COMMITTEESAUDIT ENGAGEMENTSAUDIT EVIDENCEAUDIT STANDARDSAUDITED FINANCIAL INFORMATIONAUDITED FINANCIAL STATEMENTSAUDITINGAUDITING INDUSTRYAUDITING PROFESSIONAUDITING STANDARDSAUDITORSBALANCE SHEETBANK INDONESIABANKING INDUSTRYBANKING LAWBANKING SECTORBANKING SUPERVISIONBANKSBOND MARKET CAPITALIZATIONBUSINESS COMBINATIONSBUSINESS LAWBUSINESS LICENSESBUSINESS PLANSCAPACITY BUILDINGCAPITAL EXPENDITURESCAPITAL MARKETCAPITAL MARKET ACTIVITIESCAPITAL MARKET ACTIVITYCAPITAL MARKET LAWCAPITALIZATIONCASH FLOWSCENTRAL BANKCERTIFIED PUBLIC ACCOUNTANTSCHIEF FINANCIAL OFFICERSCOMMERCIAL BANKSCOMPANY LAWCOMPLIANCE GAPSCONFLICT OF INTERESTCONFLICTS OF INTERESTCONTINGENT LIABILITIESCOOPERATIVESCORPORATE BONDCORPORATE BOND MARKETCORPORATE GOVERNANCECOST ACCOUNTINGCREDITORCREDITOR RIGHTSCURRENCYCUSTODYDEBTDEPOSITDEPOSIT INSURANCEDISCLOSURE OF INFORMATIONDISCLOSURE REQUIREMENTSDUE DILIGENCEECONOMIC DEVELOPMENTEMPLOYMENTENFORCEMENT MECHANISMSENFORCEMENT PROCESSEXCHANGE COMMISSIONEXPENDITURESFAIR VALUESFINANCIAL ACCOUNTINGFINANCIAL ACCOUNTING STANDARDSFINANCIAL AUDITSFINANCIAL CRISISFINANCIAL DATAFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTFINANCIAL INSTRUMENTSFINANCIAL MANAGEMENTFINANCIAL REPORTINGFINANCIAL REPORTING STANDARDSFINANCIAL REPORTSFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL SYSTEMSFOREIGN INVESTMENTFRAUDFRAUD RISKGAAPGOOD PRACTICEGOVERNMENT BONDSGOVERNMENT GRANTSGRACE PERIODGROSS DOMESTIC PRODUCTHUMAN RESOURCESINADEQUATE DISCLOSUREINCOME TAXINFORMATION DISCLOSUREINSTITUTIONAL CAPACITYINSURANCEINSURANCE COMPANIESINTERNAL CONTROLSINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL ACCOUNTING STANDARDS COMMITTEEINTERNATIONAL DEVELOPMENTINTERNATIONAL STANDARDINTERNATIONAL STANDARDSINVESTMENT BANKSINVESTMENT CLIMATEINVESTMENT DECISIONSINVESTOR CONFIDENCEISLAMIC FINANCIAL INSTITUTIONSISSUANCELAWSLEGAL FRAMEWORKLEGAL OBLIGATIONLEGAL SYSTEMLEGISLATIVE FRAMEWORKLENDERLENDER OF LAST RESORTLIFE INSURANCELIFE INSURANCE COMPANIESLIMITED LIABILITYLOANLOCAL BUSINESSMANAGEMENT ACCOUNTINGMANDATESMARKET CAPITALIZATIONMARKET DISCIPLINEMARKET PARTICIPANTSMARKET REGULATORMINORITY INVESTORSMONETARY FUNDMUTUAL FUNDSPAYMENT SYSTEMSPENALTIESPENSIONPENSION FUNDPENSION FUNDSPOLITICAL STABILITYPUBLIC ACCOUNTANTSPUBLIC ACCOUNTINGPUBLIC DISCLOSUREQUALITY ASSURANCEQUALITY CONTROLRATING AGENCIESREGISTRATION STATEMENTRESERVESRURAL BANKSSAFETY NETSECONDARY MARKETSSECURITIESSECURITIES EXCHANGESECURITIES MARKETSHAREHOLDERSSTATUTORY AUDITORSSTOCK EXCHANGESTOCK MARKETSTOCK MARKET CAPITALIZATIONSUBSIDIARIESSUPERVISORY AGENCYTAXATIONTECHNICAL ASSISTANCETERRORISMTRADINGTRANSACTIONTRANSPARENCYVALUATIONVALUATIONSWorld Bank10.1596/12845