ABSTRACT
This chapter examines the development of accounting standards and practices in Indonesia since its early stages to the current period of convergence of the country's national accounting standards with IFRS (International Financial Reporting Standards). As the only South East Asian member of the G20 group of countries, Indonesia is considered likely to play an increasingly significant role in promoting economic development and ensuring political stability, both in the region and globally. Based on their legal status, business enterprises in Indonesia can be classified into two broad categories: non-incorporated businesses and incorporated businesses. The Indonesian capital market is overseen by the Financial Service Authority, an independent, legislation-backed institution that reports directly to the Indonesian Parliament. The financial reporting requirements for all Indonesian business enterprises are mainly prescribed in the Indonesian Commercial Code and the tax laws. The auditing requirements for public listed companies are stipulated in the OJK (Otoritas Jasa Keuangan – OJK) regulations.
