Did Expected Credit Loss (ECL) fair for Banks in COVID-19?

Konferensi Nasional Ekonomi, Manajemen, dan Akuntansi II

8 Pages Posted: 30 Nov 2020

See all articles by Septian Bayu Kristanto

Septian Bayu Kristanto

Krida Wacana Christian University

Widowati Dian Permatasari

Universitas Muhammadiyah Surakarta

Nizar Zulkarnain

University of Indonesia (UI) - Graduate Program in Accounting

Ahmad Hambali

University of Indonesia (UI) - Graduate Program in Accounting

Date Written: December 10, 2020

Abstract

In this paper, we explore the impact of the COVID-19 crisis on the accounting practices associated with the ECL approach by PSAK 71. Given the complexity of the pandemic, the neutral application of existing accounting standards is of more importance than ever as it ensures objective decision-useful information that serves comparability, maintenance of a level playing field and transparency. Worldwide interventions by banking regulators, however, have considerable potential to interfere with these fundamental contributions of financial statements. The result is that for banks under PSAK 71 it is not even entirely clear what assessments banks can and will use in their calculations estimating the effects of COVID-19.

Keywords: ECL, PSAK, COVID-19, Accounting practices

JEL Classification: G12, G13, G21, M41

Suggested Citation

Kristanto, Septian Bayu and Permatasari, Widowati Dian and Zulkarnain, Nizar and Hambali, Ahmad, Did Expected Credit Loss (ECL) fair for Banks in COVID-19? (December 10, 2020). Konferensi Nasional Ekonomi, Manajemen, dan Akuntansi II, Available at SSRN: https://ssrn.com/abstract=3738399

Septian Bayu Kristanto (Contact Author)

Krida Wacana Christian University ( email )

Jl. Tanjung Duren Raya No.4
Jakarta, DKI 11470
Indonesia
+62215666952 (Phone)
+62215689474 (Fax)

HOME PAGE: http://www.ukrida.ac.id

Widowati Dian Permatasari

Universitas Muhammadiyah Surakarta ( email )

Jalan Ahmad Yani Tromol Pos 1 Pabelan Kartasura
57162 Jawa Tengah, Surakarta
Indonesia

Nizar Zulkarnain

University of Indonesia (UI) - Graduate Program in Accounting ( email )

Jl Salemba Raya No 4
Jakarta, DKI 10430
Indonesia

Ahmad Hambali

University of Indonesia (UI) - Graduate Program in Accounting ( email )

Jl Salemba Raya No 4
Jakarta, DKI 10430
Indonesia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
56
Abstract Views
214
rank
425,855
PlumX Metrics