Chapter 18

Brazilian Journal of Development 131
ISSN: 2525-8761
The comparison of revenue recognition under IFRS 15, ASC 606,

PSAK 72 and its implementation on revenue recognition of PT Telkom
Indonesia Tbk
A comparação do reconhecimento de receita sob o IFRS 15, ASC 606,

PSAK 72 e sua implementação no reconhecimento de receita da PT
Telkom Indonesia Tbk
DOI:10.34117/bjdv10n1-009
Recebimento dos originais: 01/12/2023

Aceitação para publicação: 03/01/2024
Septin Yarnanda
Master in Accounting
Institution: Universitas Sumatera Utara
Address: Jl. Prof. TM Hanafiah 12, USU - campus Medan
E-mail: septinyarnanda@gmail.com
Vincent Tanjaya
E-mail: vincenttannn17@gmail.com
Rona Lamretta Sinurat

E-mail: ronalamretta83@gmail.com
Iskandar Muda
Doctor in Accounting
E-mail: iskandar1@usu.ac.id
ABSTRACT
The convergence of International Accounting Standards achieved through the full
adoption of IFRS by DSAK is PSAK 72 Revenue from Contracts with Customers, which
came into effect on January 1, 2020. Based on this, the author examines whether there are
differences between IFRS and US GAAP and PSAK. This article discusses only the
differences between IFRS, US-GAAP and PSAK in revenue recognition, specifically the
differences between IFRS, US-GAAP and PSAK in presentation, recognition,
measurement and disclosure.
Keywords: revenue recognition, IFRS, U.S. GAAP, PSAK.
Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

ISSN: 2525-8761
RESUMO
A convergência das Normas Internacionais de Contabilidade alcançada por meio da
adoção integral das IFRS pela DSAK é a PSAK 72 Receita de Contratos com Clientes,
que entrou em vigor em 1º de janeiro de 2020. Com base nisso, o autor examina se há
diferenças entre o IFRS e o US GAAP e o PSAK. Este artigo discute apenas as diferenças
entre IFRS, US-GAAP e PSAK no reconhecimento de receitas, especificamente as
diferenças entre IFRS, US-GAAP e PSAK na apresentação, reconhecimento, mensuração
e divulgação.
Palavras-chave: reconhecimento de receita, IFRS, U.S. GAAP, PSAK.
1 INTRODUCTION
Revenue is the total inflows of economic benefits from the ordinary activities of
an enterprise during a period when the inflows result in an increase in capital that is not
attributable to contributions from owners (PSAK 23). The revenue provisions in the old
standards made it difficult for investors and other users to understand and compare
revenue information between entities. This occurs when comparisons are made between
service entities and manufacturing or trading entities. For this reason, a new Statement of
Financial Accounting Standards (SFAS), SFAS 72, was developed. This new standard
aims to produce more meaningful financial reports by providing a more detailed revenue
recognition method. PAS 72 requires entities to provide users of financial statements with
information about the nature, amount, timing and uncertainty of revenue and cash flows
from contracts with customers. This will increase the transparency of financial reporting
and reduce information asymmetries between managers and investors.
According to PSAK 72, revenue is income earned in the ordinary course of
business (PSAK 72). Revenue generated by an entity must be properly measured and
reported in the financial statements. When revenue is recognized, the transaction must be
recorded as revenue to the entity. Revenue recognition must be done accurately and
carefully to avoid errors such as recognizing revenue in the current period for future
periods. Indonesia has been applying International Financial Reporting Standards (IFRS)
since 2012. One of them is IFRS 15, which incorporates PSAK 72 on revenue from
contracts with customers, which became effective on January 1, 2020. Prior to 2012,
Indonesia implemented standards based on Generally Accepted Accounting Principles
(GAAP).
In this study, the author aims to see a comparison of the revenue recognition
standards contained in PSAK 72, which has also adopted IFRS, with GAAP at PT Telkom

ISSN: 2525-8761
Indonesia Tbk, which is also listed in the US capital market, which uses GAAP standards,
analyzing the relationship of these three standards in the principles of revenue recognition
implemented by companies in Indonesia, especially PT Telkom Indonesia Tbk.
2 LITERATURE REVIEW
2.1 DEFINITION OF REVENUE
Revenue is all revenue, both cash and non-cash, which is the result and sale of
goods or services within a certain period of time. Revenue or another name for revenue
is income earned over a certain period of time. Revenue is all that is received from the
sale of goods and services obtained in a business unit (Yulisfan, 2021). The definition of
revenue (revenue) is different from the definition of income (income) (Laurensius, 2021).
If revenue is income that has not been reduced by costs and expenses, while income is
net income that has been reduced by expenses and costs.
2.2 TYPES OF INCOME

Broadly speaking, income is classified into three groups, namely:
1. Salaries and wages. Rewards obtained after the person has done work for
others which is given within one day, one week or one month.
2. Income from one's own business, namely revenue obtained from the
production of a business owned by a person or family member and labor from
one's own family members by not taking into account capital rental costs.
3. Income from other businesses, namely income obtained without doing
work and such income is usually side income such as income from renting out
houses, pensioners' income, interest from money, and donations from others.
2.3 MEASUREMENT OF REVENUE

Measurement of revenue by monetary units or measures and the timing that the
revenue can be reported as revenue. Revenue recognition is the official recording of
amounts into the accounting system so that these amounts are reflected in the financial
statements. Revenue can be recognized if it meets the qualities of measurability and
reliability. Based on the time and type of business, revenue recognition cannot be equated
with one another. Companies engaged in different fields will have different ways of
recognizing and recording their revenue. Revenue recognition is not always done when
sales have occurred.

ISSN: 2525-8761
2.4 REVENUE RECOGNITION IN ACCOUNTING

Revenue recognition is an accounting principle that asserts that revenue should be
recognized when earned. According to (PSAK 23) PSAK Revenue is the gross inflow of
economic benefits and arises from the normal activities of the entity during a period.
So that the cash inflow results in an increase in equity that does not come from
capital investment. For this reason, the principle of revenue recognition is also divided
into two, namely revenue that can be realized on goods or services that can be exchanged
or converted for cash or claims for cash (receivables).
There are several things that must be considered by companies in recognizing
revenue according to PSAK.
1. Revenue must be recognized when the company has delivered the product
or service that has been sold.
2. Cash or cash receipts must be recognized when received.
3. Revenue should be recognized when the company has fulfilled the agreed
contract, or when the company has completed the delivery of the products or
services that have been sold.
2.5 REVENUE RECOGNITION UNDER IFRS

According to various sources, the IFRS framework contains certain standards on
revenue recognition. These standards describe specific revenue recognition criteria for
sales of goods and sales of services and interest, royalties and dividends. The general
revenue recognition criteria for each are: it is probable that the economic benefits
associated with the transaction will flow to the entity, and that the revenue and costs can
be measured reliably (Rahman et al., 2022).
Additional recognition criteria apply to revenue arising from the sale of goods.
IFRS requires that the seller has transferred significant risks and rewards of ownership to
the buyer and retains no management involvement in, or control over, the goods. Revenue
from services should be recognized by reference to the state of completion of those
transactions at the balance sheet date. Interest income should be recognized on a basis
that takes into account the effective yield on the asset.

ISSN: 2525-8761
2.6 COMPARISON OF INDONESIAN SAK WITH IFRS AND U.S. GAAP

CONVERGENCE
The first difference in revenue recognition between Indonesian SAK contained in
PSAK No. 23 and the proposed convergence of U.S. GAAP and IFRS occurs if what is
proposed by Schipper et al. (2009) was rejected by most participants in the discussions
between the FASB and the IASB to formulate convergence of the two accounting
standards produced by the two organizations. Schipper et al. (2009) proposed that revenue
recognition should use the customer consideration model rather than the measurement
model due to the ease of verification and avoidance of professional judgment errors in
determining exit prices. PSAK No. 23 is more towards the customer consideration model
where performance obligations are based on the relative selling prices of goods and
services (Schipper et al., 2009). This is consistent with what PSAK No. 23 suggests,
which is to use net realizable value.
The second difference, if the discussion participants agreed with what Bohusova
and Nerudova (2009) proposed that there are two possible approaches to revenue
recognition. In the opinion of the IASB and FASB, this model encourages a more faithful
and more consistent description of the underlying economic transactions than the earning
process model. Although there are problems in applying the asset liability model, as
described above, if it is related to the concept of revenue recognition in contracts with
customers, it will provide a better solution if the definition of rights and performance
obligations and the determination of when performance obligations are satisfied can find
a solution as described by Schipper et al. (2009).
3 METHODS
The implementation of PSAK 72, which is effective from January 1, 2020, which
contains the principles of revenue recognition, accounting and measurement by entities,
raises one of the issues to be studied regarding its comparison with the revenue
recognition standards contained in IFRS and GAAP. This type of research aims to
compare the three standards and analyze the relationship between the three standards in
the income recognition principles applied by companies in Indonesia. The method used
by the researchers is a qualitative descriptive approach in the nature of a literature study,
namely by collecting data, information and scientific works, which are then studied,
compared and reviewed with regulations and standards related to the main problem. Data
is obtained from journals, scientific papers, reading materials, which are then analyzed

ISSN: 2525-8761
and compared between the applicable standards and then compared with each of these
standards to find similarities regarding revenue recognition that is reasonable for
companies to apply. The standards taken in this research are comparing IFRS 15
(International Financial Reporting Standards 15), GAAP (Generally Accepted
Accounting Standards) regarding revenue recognition to the determination of PSAK 72
(Statement of Financial Accounting Standards). Then the research continues by analyzing
the application of PSAK 72 to errors a company listed on the Indonesian Stock Exchange.
In this research, the object of research is PT Telekomunikasi Indonesia Tbk (TLKM) by
taking the 2022 financial report obtained from the Indonesia Stock Exchange website as
material for this research.
4 RESULT & DISCUSSION

4.1 IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS
IFRS 15 requires revenue to be recognized when (or as long as) the entity has
fulfilled its performance obligation. IFRS 15 is effective for annual periods beginning on
or after January 1, 2018 (IFRS, 2023).
The history of standards related to IFRS 15 is as follows (Deloitte, 2023):
Table 1: The Standards Related to IFRS 15

Date Development Description
May, 28 2014 IFRS 15, Revenue from This new standard establishes a comprehensive framework for the
Contracts with Issued recognition, measurement and disclosure of revenue. A core principle of the
Customers framework is that an entity should recognize revenue to reflect the transfer
of promised goods and services to customers in an amount that reflects the
consideration to which the entity is entitled in exchange for those goods or
services.
Sept 11, 2015 1 year delay from the This amendment defers the effective date of IFRS 15 by one year to annual
effective date of IFRS 15 periods beginning on or after January 1, 2018. Earlier application is
permitted.
April12, 2016 Recent amendments to The amendments do not change the principles underlying the standard, but
IFRS 15 clarify how those principles should be applied.
The amendments also provide additional transition relief to reduce cost and
complexity for entities when they first adopt the new standard.
The amendments are effective for annual periods beginning on or after

January 1, 2018. Earlier application is permitted.
Source: IFRS. (2023, 12). International Financial Reporting Standards. Retrieved from ifrs.org:
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/
IFRS 15 sets out the principles that an entity should apply in reporting information
about the nature, amount, timing and uncertainty of revenue and cash flows from contracts
with customers. Under IFRS 15, an entity recognizes revenue to reflect the transfer of

ISSN: 2525-8761
promised goods or services to a customer in an amount that reflects the consideration to

which the entity is entitled in exchange for those goods or services. To recognize revenue
under IFRS 15, an entity applies the following five steps (IFRS, 2023).
1) identify the contract with the customer
2) Identify the performance obligations in the contract.
3) Determine the transaction price.
4) allocate the transaction price to each performance obligation
5) recognize revenue when the obligations are satisfied.
4.2 ASC 606 REVENUE FROM CONTRACTS WITH CUSTOMERS (TOPIC 606)
Accounting Standards Codification (ASC) 606 was issued in May 2014. The
FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with
Customers (Topic 606). Topic 606 establishes principles for reporting useful information
to users of financial statements about the nature, amount, timing, and uncertainty of
revenue from contracts with customers. Topic 606, together with IFRS 15, Revenue from
Contracts with Customers, issued by the IASB, completes a joint effort by the FASB and
the IASB to improve financial reporting by providing general revenue recognition
guidance for U.S. GAAP and IFRS that explains the principles of revenue recognition
and is consistently applied across transactions, industries, and capital markets (FASB,
2021).
ASC 606 is a simplified, one-size-fits-all revenue recognition standard that all
companies must now follow. It is consistent across industries and replaces the old
industry-specific revenue recognition standards. The move to a single set of rules has
resulted in greater transparency, improved accountability, and easier comparability of
financial reporting across companies and industries. To support the common goal of
creating a universal framework for revenue recognition, the FASB and IASB divide
reporting and financial statement preparation into a five-step model as follows (Stripe,
2023) :
1) Identify the contract with the customer.
2) Identify the performance obligations in the contract.
3) Determine the transaction price.
4) Assign transaction prices.
5) Recognize revenue as or when the entity satisfies its performance
obligations.

ISSN: 2525-8761
4.3 COMPARISON OF IFRS 15 AND ASC 606

Based on the explanation of the two standards above, IFRS 15 was prepared by
the International Accounting Standards Board (IASB) and ASC 606 was prepared by the
Financial Accounting Standards Board (FASB), which of the two standards implements
five steps for revenue recognition, which has similarity if you look at the five steps. Based
on the similarities between IFRS 15 and ASC 606, the 5 steps for revenue recognition
from both standards can be illustrated based on the table below:
Table 2: The Comparison of IFRS 15 & ASC 606

IFRS 15 ASC 606
1) Identify the contract with the customer. 1) Identify the contract with the customer.
2) Identify the performance obligations in 2) Identify the performance obligations in
the contract. the contract.
3) Determine the transaction price. 3) Determine the transaction price.
4) Allocate the transaction price to each 4) Assign transaction prices.
performance obligation.
5) Recognize revenue when the obligations 5) Recognize revenue as or when the entity
are satisfied. satisfies its performance obligations.
Source: The Analysis of The Author (2023).
From the table above, it can be concluded that there is no difference between the
two standards in terms of the requirements for recognizing revenue from contracts with
customers. However, based on (FASB, 2021) there are a few minor differences as
follows:
1) Collectibility threshold
The FASB includes an explicit collectibility threshold as one of the criteria that a
contract must meet before an entity can recognize revenue. For a contract to meet these
criteria, an entity must conclude that it is probable that it will collect the consideration to
which it is entitled in exchange for the goods or services to be delivered to the customer.
In establishing the threshold, the FASB recognized that the term "contingency" has
different meanings under GAAP and IFRS. However, the FASB decided to set the
threshold at a level that is consistent with previous revenue recognition practices and
requirements under GAAP and IFRS.
2) Internal disclosure requirements
The FASB notes that the general guidance in its respective interim reporting
standards (Topic 270, Interim Financial Reporting, and IAS 34, Interim Financial
Reporting) applies to revenue from contracts with customers. However, the IASB decided
to amend IAS 34 to specifically require disclosure of disaggregated information about

ISSN: 2525-8761
revenue from contracts with customers in interim financial statements. The FASB also
decided to amend Topic 270 to require public entities to disclose disaggregated revenue
information in interim financial reports. The FASB also decided to require information
about contract balances and remaining performance obligations to be disclosed on an
interim basis.
3) Early adoption and effective date
The effective date for IFRS 15 is for annual periods beginning on or after January
1, 2018, while ASC 606 has an effective date for public entities for annual periods
beginning after December 15, 2017. Early adoption is permitted for IFRS 15. ASC 606
also permits early adoption, but only for annual periods beginning after December 15,
2016.
4) Reversal of impairment
Consistent with other areas of GAAP, Topic 340 does not permit an entity to
reverse an impairment loss on an asset recognized in accordance with guidance on costs
to obtain or fulfill a contract. In contrast, IFRS 15 requires an entity to reverse an
impairment loss, which is consistent with the requirements for impairment of assets
within the scope of IAS 36, impairment of assets.
5) Requirements for nonpublic entities
ASC 606 applies to nonpublic entities and includes several specific exemptions
for nonpublic entities related to disclosure, transition and effective date. IFRS 15 does not
include such guidance. IFRS for Small and Medium Entities is available for non-public
entities.
6) Determining the Nature of an Entity's Promise to License Intellectual
Property
ASC 606 and IFRS 15 require an entity to assess whether the nature of its
commitment to grant a license is a right to use or a right of access to the entity's
intellectual property, resulting in revenue recognition as it is earned or over time. Under
Topic 606, an entity makes this determination by classifying the intellectual property
underlying a license as functional or symbolic based on whether the intellectual property
has significant independent functionality. A license to functional intellectual property is
considered to be a right to use, while a license to symbolic intellectual property is
considered to be a right to access the underlying intellectual property. Under IFRS 15, the
determination of whether the nature of an entity's promise to grant a license is a right to
use or a right to access the entity's intellectual property is based on whether, at the time

ISSN: 2525-8761
the license is granted, the customer has control over the use and obtains substantially all
of the remaining benefits of the license, which is the case when the underlying intellectual
property is not significantly affected by the entity's ongoing activities. Although most
licenses of symbolic intellectual property will be recognized over time under IFRS 15,
revenue may be recognized at a point in time in cases where the entity does not perform
activities that significantly affect the customer's ability to obtain benefits from the
intellectual property during the license period. Under Topic 606, revenue is recognized
over time for all licenses of symbolic intellectual property.
7) Renewal of an Intellectual Property License
ASC 606 provides that license extensions or renewals are subject to the uses and
benefits guidance in paragraph 606-10-55-58C, which generally results in revenue
recognition at the beginning of the renewal period. In IFRS 15, the uses and benefits
guidance does not specifically address renewals. As a result, in some cases, the
recognition of revenue in connection with a renewal or extension may occur at a later date
under ASC 606 rather than IFRS 15.
8) Shipping and handling
ASC 606 provides an accounting policy option that permits an entity to account
for shipping and handling activities that occur after a customer obtains control of an item
as activities to fulfill a promise to deliver the item. IFRS 15 does not provide a similar
policy option.
9) Non-cash consideration
ASC 606 provides that noncash consideration should be measured at its estimated
fair value at the inception of the contract, and the guidance on variable consideration
applies only to variability that results from reasons other than the form of the noncash
consideration. IFRS 15 does not specify the measurement dates and whether the guidance
on variable consideration applies only to variability resulting from reasons other than the
form of non-cash consideration.
10) Sales Tax Presentation
ASC 606 provides an accounting policy option that permits entities to exclude all
sales taxes (and other similar taxes) from transaction price measurements. IFRS 15 does
not provide a similar policy option.
11) Practical guidance for franchisees
ASC 606 provides guidance that permits nonpublic franchisors to account for pre-
opening services provided to a franchisee that differ from the franchise license if those

ISSN: 2525-8761
services are consistent with a predetermined list of services specified in the guidance.
IFRS 15 does not provide similar guidance.
12) Effective Date of Practical Guidance for Contract Amendments (Modified
Retrospective Transition)
For entities applying ASC 606 in accordance with paragraph 606-10-65-1(d)(2)
(equivalent to paragraph C3(b) of IFRS 15), the entity shall apply the practical expedient
from the date of initial application. However, an entity that applies IFRS 15 in accordance
with paragraph C3(b) may apply the practical expedient either at the beginning of the
earliest period presented or at the date of initial application.
13) Contracts Completed at Transition
ASC 606 defines a completed contract as a contract for which all (or substantially
all) of the revenue has been recognized under GAAP well before the date of initial
application. IFRS 15 defines a completed contract as one in which an entity has
transferred all goods or services identified in accordance with existing IFRSs. In addition,
the IASB added a practical expedient to allow entities applying the full retrospective
transition method not to restate contracts that were completed contracts at the beginning
of the earliest period presented. Topic 606 does not include this Board guidance.
4.4 PSAK 72 REVENUE FROM CONTRACTS WITH CUSTOMERS

In Indonesia itself, financial accounting standards prepared by the Financial
Accounting Standards Board (DSAK) are applied, known as the Statement of Financial
Accounting Standards (PSAK). PSAK 72 Revenue from Contracts with Customers (IAI,
2023), which is an adaptation of IFRS 15 Revenue from Contracts with Customers. PSAK
72 sets out the principles that entities should apply to provide users of financial statements
with useful information about the nature, amount, timing and uncertainty of revenue and
cash flows arising from contracts with customers.
PSAK 72 will supersede all existing revenue recognition standards, namely (IAI,
2023):
a. PSAK 23: Revenue;
b. PSAK 34: Construction Contracts
c. ISAK 10: Customer Loyalty Program,
d. ISAK 21: Real Estate Construction Agreements
e. ISAK 27: Transfer of Assets from Customers; and
f. ISAK 44: Accounting for Real Estate Development Activities.

ISSN: 2525-8761
Because PSAK 72 is an adoption of IFRS 15, which means that the revenue
recognition requirements in PSAK 72 are the same as those in IFRS 15, so researchers
draw from sources other than IFRS 15, namely by taking references from PSAK 72 to be
able to determine revenue recognition, this statement requires entities to perform analysis.
transactions based on a contract, which consists of the following 5 (five) steps (IAI,
2023):
1) Identify contracts with customers;
2) Identify performance obligations;
3) Determine transaction price;
4) allocating transaction prices to implementation obligations; and
5) Recognize revenue when (or as long as) the entity has fulfilled its performance
obligations.
From the above five steps, it is concluded that there is no difference with IFRS
15. Next, we will explain the implementation of PSAK 72 for one of the service
companies listed on the Indonesian Stock Exchange, namely PT Telkom Indonesia for
the financial statements for the period 2021 & 2022.
The following is the disclosure of contract revenue in the notes to PT's 2021 &
2022 financial report. PT Telkom Indonesia Tbk for comparison between the two
reporting years.
Figure 1: The Disclosure of Contract of The Revenue
Source: Consolidated Financial Report of PT Telkom Indonesia Tbk. 2022, which can be downloaded
from the website www.idx.co.id

ISSN: 2525-8761
Figure 2: The Consolidated Financial Report of PT Telkom Indonesia Tbk. 2022
Source: Consolidated Financial Report of PT Telkom Indonesia Tbk. 2022, which can be downloaded from the
website www.idx.co.id
Based on the income and expense recognition section in the notes to the
consolidated financial statements of PT. Telkom Indonesia Tbk. Please explain the
summary of PT. Telkom Indonesia Tbk. For each type of revenue included in the
illustration above:
i. Mobile
Mobile revenue mainly consists of revenue from mobile services, which include
telephone services, interconnection services, Internet and data services, and Short
Messaging Service (SMS) services, where these services are offered on a postpaid and
prepaid basis. For prepaid services, revenue is recognized as a contractual liability when
the customer pays in advance for services to be provided in the future and has not yet
received the service at the balance sheet date.
ii. Consumer
Consumer revenues consist of fixed-line telephony revenues and in-home
services. Based on references with the principle of revenue recognition from 2021 PT.
Telkom Indonesia Tbk. Has implemented new terms and conditions that contracts with
customers are open contracts with a minimum term of 12 months and significant early
termination fees. The contract period is based on PSAK 72 for 12 months and continues
with monthly contracts. The existence of a subscription contract allows customers to pay
fees in advance at the beginning of the contract. PT Telkom Indonesia Tbk. Defers this

ISSN: 2525-8761
amount as a contractual liability and recognizes it as revenue when performed in

accordance with the estimated term of the relationship with the customer.
iii. Enterprise
Revenues from corporate customers consist primarily of the sale and provision of
voice, data and Internet services, information technology and other services. PT Telkom
Indonesia Tbk. Executes contracts with corporate customers with specifications based on
customer orders. Revenue from corporate customers is recognized over time using the
output method, i.e. based on actual usage or elapsed time if the provision of services is
dependent on usage, except for sales of goods, which are recognized at a specific point in
time. Revenue is recognized when control of the goods passes to the customer, usually
when the customer takes physical possession of the goods.
iv. Wholesale and International Business (WIB)
WIB's revenues consist mainly of interconnection services for the interconnection
of calls from customers of other telecommunications operators to PT customers. Telkom
Indonesia Tbk. s customers, or calls between customers of other operators in the PT
Telkom Indonesia Tbk group. All of these services are recognized as revenue based on
the output method (performance of obligations/services) recorded for the month.
v. Other
Other contract income is derived from contract assets that are initially recognized
as income from the delivery of goods or services because the receipt of compensation is
still subject to certain stages or after the completion of the project.
Based on the consolidated financial statements, the source of contract income of
PT Telkom Indonesia Tbk is explained. Where the recognition of contract income from
customers follows the applicable relevant standards, namely PSAK 72, which, as
explained above, recognizes income consisting of 5 stages, which will be explained in the
implementation of these standards in the recognition of income for research objects:
4.4.1 Identification of contracts with customers

In identifying contracts, PT Telkom Indonesia Tbk. Identify each contract from
different income sectors starting from mobile, where contracts are identified when
customers prepay for services that will be provided in the future, the same as with mobile
sector income, in the consumer sector of PT Telkom Indonesia Tbk. Offers various
service products where when the product is selected by the customer, a contract is
identified with the customer and then the customer will prepay the cost for the

ISSN: 2525-8761
implementation of the service in the future. Then in the enterprise sector, where custom
orders are received or based on customer requests, this allows for changes to the
implementation of services at a later date. A contract can be identified when both parties
have agreed to an arrangement between the two parties. For WIB and other revenues that
are transactions outside of general item transactions, the contract can be identified when
the transaction has occurred or is occurring.
4.4.2 Identify the performance obligations

When to determine the performance of obligations can be determined after
identifying the contract with the customer. In the automotive sector, the company will
perform obligations or provide services when the customer has prepaid the contract
previously determined between the two parties. The following is for the consumer sector
where PT Telkom Indonesia Tbk. Offers various choices of service products that
customers will choose, where each service product determines when to perform its
obligations, although in general the obligations will be performed immediately at the time
of the transaction, which indicates that a contract or agreement has arisen between the
two parties. Slightly different from the previous two sectors, Enterprise is an order from
a customer, where when and how it will be implemented is specified in the agreed
contract. Meanwhile, for the WIB sector, the company carries out its obligations first due
to requests from customers, in this case communication between different operators.
4.4.3 Determining the Transaction Price

The transaction price has been set in advance by PT Telkom Indonesia Tbk along
with the terms and conditions for each service. Each service offered has different terms
of use and prices, the transaction price is clearly stated before an agreement is made
between the service provider and the customer. If we look at the mobile, consumer and
enterprise revenue sectors, the service price is determined at the beginning and then this
price becomes the transaction price of the agreement that occurs.
4.4.4 Allocate the transaction price to the implementation obligations.

In the previous revenue recognition step, a contract with the customer was
identified that includes the price and date of fulfillment of its obligations. Therefore, this
step allocates or compares the transaction price from the previous three steps to the

ISSN: 2525-8761
transaction price identified for the performance obligations that are typically performed
at the balance sheet date.
4.4.5 Revenue is recognized when (or as long as) the entity has fulfilled the
performance obligation
Based on the information available in the notes to the financial statements, it is
explained that transactions that occur under contracts with customers, when their
obligations have been fulfilled, are recognized as revenue in the reporting period, and if
the obligations have not been fully fulfilled at the reporting date from the contracts
available, they are recognized as contract liabilities, which are disclosed in the financial
statements.
5 CONCLUSION
Based on comparative research conducted by comparing IFRS 15 and ASC 606
financial accounting standards on revenue from contracts with customers, it can be
concluded that the step of recognizing revenue from contracts generally has no difference
between the two standards, there are only a few minor differences which have been
described in the previous chapter. Then the Indonesian Financial Accounting Standards,
namely PSAK where the standards governing revenue from contracts with customers are
listed in PSAK 72 which is a convergence of IFRS 15 also has no difference between the
two international financial accounting standards. Research was also conducted to analyze
the implementation of PSAK 72 into Indonesian companies where the object we take is a
company listed on the Indonesia Stock Exchange in this study is PT Telkom Indonesia
Tbk. which can be concluded that the company has implemented PSAK 72 properly,
namely by following the 5 steps of revenue recognition from contracts with an
explanation in Notes to Financial Statement. From the previous chapter, it was explained
that there are several sectors of the company's revenue derived from contracts with
customers, which can be concluded that the sector consists of mobile, consumer,
enterprise, WIB, etc. It has followed the steps set out in PSAK 72 where the most
important thing is that revenue recognition from all these sectors is recorded after the
performance of obligations by the company. This is in accordance with the principle of
revenue recognition based on accrual basis accounting.

ISSN: 2525-8761
REFERENCES
Deloitte. (2023, 12). IFRS 15 - Revenue from Contracts with Customers. Retrieved from
Deloitte: https://www.iasplus.com/en-ca/standards/part-i-ifrs/international-financial-
reporting-standards/ifrs15
FASB. (2021). Comparison of Topic 606 and IFRS 15. Revenue from Contracts with
Customers.
IAI. (2023, Desember). Standar Akuntansi Keuangan. Retrieved from Ikatan Akuntan
Indonesia: http://www.iaiglobal.or.id/v03/standar-akuntansi-keuangan/pernyataan-sak-
83-psak-72-pendapatan-dari-kontrak-dengan-pelanggan
IFRS. (2023, 12). International Financial Reporting Standards. Retrieved from ifrs.org:
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-
with-customers/
Laurensius, F (2021). Analysis of the Internal Control System on the Revenue Cycle of
Lending at Rural Bank. Proceedings of the 1st International Conference on Social,
Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia.
http://dx.doi.org/10.4108/eai.25-11-2021.2318821
Rahman, A., Caroline, C., Panjaitan, P. D., & Situmorang, R. Y. (2022). The panel data
regression: relationship of the exports, imports and intake of oil reserves son oil
production levels in southwest asian countriesto contribute to state revenue (The
implement of International Trade Theory). International Journal of Professional
Business Review, 7(3), e0593-e0593.
Stripe. (2023, May). ASC 606 and IFRS 15: What you need to know about revenue
recognition. Retrieved from Stripe: https://stripe.com/resources/more/asc-606-and-ifrs-
15#what-is-revenue-recognition
Trullion. (2023, May). ASC 606 vs IFRS 15. Retrieved from Trullion:
https://trullion.com/blog/asc-606-vs-ifrs-15/
Yulisfan, Y., Nedelea, A. M. (2021). Implementation of Digitalization On The Revenue

Cycle To Improve The Quality Of Decision Making More Timely In Indonesia. Ecoforum
Journal, 10(3). http://www.ecoforumjournal.ro/index.php/eco/article/view/1217/762
Bohusova, Hana, and Nerudova, Danuse. (2009). US GAAP And IFRS Convergence In
The Area of Revenue Recognition. Economics and Management, Vol. 14, 12 – 19
IAI. Pernyataan Standar Akuntansi Keuangan (PSAK) No. 23 tentang Pendapatan. 2004

Chapter 18

Uploaded by

Copyright:

Available Formats

Chapter 18

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 18

Uploaded by

Copyright:

Available Formats

Brazilian Journal of Development 131

The comparison of revenue recognition under IFRS 15, ASC 606,

A comparação do reconhecimento de receita sob o IFRS 15, ASC 606,

Recebimento dos originais: 01/12/2023

Rona Lamretta Sinurat

Keywords: revenue recognition, IFRS, U.S. GAAP, PSAK.

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

Palavras-chave: reconhecimento de receita, IFRS, U.S. GAAP, PSAK.

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

2.2 TYPES OF INCOME

2.3 MEASUREMENT OF REVENUE

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

2.4 REVENUE RECOGNITION IN ACCOUNTING

2.5 REVENUE RECOGNITION UNDER IFRS

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

2.6 COMPARISON OF INDONESIAN SAK WITH IFRS AND U.S. GAAP

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

4 RESULT & DISCUSSION

Table 1: The Standards Related to IFRS 15

The amendments are effective for annual periods beginning on or after

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

promised goods or services to a customer in an amount that reflects the consideration to

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

4.3 COMPARISON OF IFRS 15 AND ASC 606

Table 2: The Comparison of IFRS 15 & ASC 606

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

4.4 PSAK 72 REVENUE FROM CONTRACTS WITH CUSTOMERS

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

Figure 1: The Disclosure of Contract of The Revenue

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

Figure 2: The Consolidated Financial Report of PT Telkom Indonesia Tbk. 2022

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

amount as a contractual liability and recognizes it as revenue when performed in

4.4.1 Identification of contracts with customers

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

4.4.2 Identify the performance obligations

4.4.3 Determining the Transaction Price

4.4.4 Allocate the transaction price to the implementation obligations.

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

Yulisfan, Y., Nedelea, A. M. (2021). Implementation of Digitalization On The Revenue

Brazilian Journal of Development, Curitiba, v.10, n.1, p. 131-147, jan., 2024

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.