09 Nov

BDO Indonesia takes over PKF

BDO Indonesia is pleased to announce a merger with one of country’s PKF offices, in the city of Tangerang – the largest city in Banten province and the third largest urban centre in the greater Jakarta region.

This consolidation adds 6 CPA partners, 2 CPA directors, 2 advisory directors, 2 tax directors and 110 professional staff with credentials in several listed companies, foreign direct investment, banking, insurance, property, airlines, jewellery manufacturing and other specific industries.  It includes an established Korean business desk to better serve BDO’s Korean clients and companies operating in Indonesia.

Michell Suharli, head of the Banten office, explains:

The team and I have observed the recent transformation of BDO in Indonesia and welcome the opportunity to be part of the firm’s future success. We are uniquely placed in Banten as the largest group of public accountants servicing one of the fastest-growing industrial corridors in Indonesia. Having a BDO office in this industrial area will significantly help to drive the firm’s growth to meet its ambition.

Welcoming Michell and his partners and staff to BDO, Stephen Darley, CEO Asia Pacific, notes that the new BDO Banten office was until recently part of the PKF member firm in Indonesia, adding that – 

This is particularly welcome, given the established Korean desk and, with a relatively new and vibrant Korean member firm in Seoul, I am confident of continued growth in winning more international business in this corridor.

Stephen also makes the point that BDO Indonesia has posted a 34% growth in its audit business over the last year, the highest growth rate amongst even the top 10 firms in our network and firmly reinforcing its number 5 position in Indonesia. This is importantly significant as Indonesia is projected to be amongst the top 5 GDP countries by 2030.

Thano Tanubrata, deputy CEO of BDO Indonesia, adds:

In addition to this expansion in West Java, we will soon open new offices in both Surabaya and Makassar, two of the more significant business centres in East Indonesia, in a further effort to grow our reach and services across the nation. At present BDO Indonesia has 45 partners and more than 700 professional staff, all committed to our vision to be the leader for exceptional client service in Indonesia.
06 Jun

Five years on: Korea sees benefits of IFRS adoption

korea global accountantThe adoption of IFRS Standards has had a positive impact on international financing for Korean firms, according to research conducted by the Korean Accounting Institute and released by the Korean Accounting Standards Board (KASB).

Since Korea adopted IFRS Standards in 2011, foreign investors have enlarged their Korean investment portfolios to include smaller firms (less than 100 billion or US$85 million in assets), due to the increased and improved access to financial information.

The research also shows that although accounting-related costs have increased for local firms and companies, the local preparers and users of financial statements have identified positive effects from IFRS adoption, including:

· higher use of accounting information in decision-making, higher prioritisation of accounting and greater allocation of resources to accounting;

· lower risk perceptions among foreign banks in their credit and lending decisions to Korean firms;

· fewer incidences of the ‘Korea Discount’; and

· greater attraction of foreign capital.

Hans Hoogervorst, IASB Chairman, said:

It is good to see that Korean companies are reaping the rewards from five years of full IFRS adoption. There is now empirical evidence to show that IFRS adoption has made Korean firms more attractive to overseas investors, to whom they can now communicate with transparency and efficiency through a global financial reporting language 

To find out more, see the full report: IFRS adoption and capital globalization in Korea.

14 May

Asia progresses towards IFRS

IFRS-IASBThere has been progress towards the adoption of IFRS Standards in Asia over the past year, with three-quarters of jurisdictions in the region now requiring the use of IFRS Standards and several major Asian economies moving closer to IFRS adoption, according to the 2016 edition of Pocket Guide to IFRS® Standards: the global financial reporting language. The new Pocket Guide was published today by the IFRS Foundation.

 The analysis of adoption of IFRS Standards, as outlined in the new Pocket Guide, is conducted across 143 jurisdictions representing 98 per cent of global GDP.  The analysis indicates that 74 per cent of jurisdictions in the Asia-Pacific region already require the use of IFRS Standards for domestic publicly accountable entities, and most of the other jurisdictions are progressing toward adoption.

For example, there has been substantial recent progress towards IFRS Standards in three major Asian economies:

·         in Japan, voluntary adopters of IFRS Standards and their share of market capitalisation are increasing rapidly. 128 companies, representing a market capitalisation of 27 per cent of the Tokyo Stock Exchange, are using or have publicly announced that they will adopt IFRS Standards.  An additional 213 companies (representing 16 per cent of market capitalisation) are considering moving to IFRS Standards.  This is a sharp increase from December 2012, when only 10 Japanese companies were using IFRS Standards;

·         in China, in November 2015 the IFRS Foundation and the Chinese Ministry of Finance substantially updated the 2005 Beijing Joint Statement and reaffirmed China’s commitment to achieve full convergence with IFRS Standards; and

·         in April 2016, the first group of companies in India started using the new Indian Accounting Standards (Ind AS), a set of accounting standards that are substantially converged with IFRS Standards but with some mandatory and some optional modifications.

Hans Hoogervorst, Chairman of the International Accounting Standards Board, commented:

It is great to see continued strong momentum in the progress towards IFRS Standards across the major Asian economies. In an ideal world, we would have one single, trusted global standard for financial reporting. Users of financial reports can now easily compare information from companies across nearly 120 jurisdictions, in every region of the world.

Globally, the 2016 edition of the Pocket Guide shows that IFRS Standards are required for all or most domestic publicly accountable entities (listed companies and financial institutions) in 119 jurisdictions—83 per cent of those surveyed. Most of the remaining jurisdictions permit their use. 

In addition, 80 jurisdictions now require or permit use of the IFRS for SMEs Standard—a self‑contained Standard specifically designed for small and medium-sized companies without public accountability—which was first issued in 2009.

The Pocket Guide can be downloaded here, and the full Jurisdiction Profiles can be accessed here. A further summary of key learnings from the Jurisdiction Profiles is available here.

24 Nov

China to explore further use of IFRS

China Finance Ministry Global Accountant IFRSThe IFRS Foundation and the Chinese Ministry of Finance today announced the formation of a joint working group to explore ways and steps to advance the use of IFRS Standards within China, especially for internationally-oriented Chinese companies.

The announcement forms part of a comprehensive update to the 2005 Beijing Joint Statement (‘the 2005 Statement’).  The 2005 Statement served as the basis for a decade of co-operation between the IASB and Chinese authorities, and led to Chinese Accounting Standards becoming substantially converged with IFRS Standards.

Building on the success of the 2005 Statement, the 2015 Joint Statement:

  • establishes a joint working group to explore steps and ways to advance the use of IFRS within China, especially for internationally-oriented Chinese companies;
  • identifies the vision of Chinese Accounting Standards becoming fully converged with IFRS Standards, which is consistent with the G20-endorsed objective of a single set of high quality, global accounting standards; and
  • encourages continued co-operation between the IASB and Chinese stakeholders in the future development of IFRS Standards.