CURRENT ISSUES IN ACCOUNTANCY Seminar 50 Tahun Akuntansi UNPAD Bandung, 2 Februari 2018 Dr. Nanny Dewi, Mcomm, AK,CA

Agenda Current issues in Accountancy: Digital Economy GRC in Financial Technology IFRS 9 Adoption : Impact and Challenges Others

Digital Economy

Digital Economy

Digital Economy

What is Financial Technology? FinTech are technologies used and applied in the financial services sector, chiefly used by financial institutions themselves on the back end of their businesses.   FinTech is coming to represent technologies that are disrupting traditional financial services, including mobile payments, money transfers, loans, fundraising, and asset management.

Disruptive. How? Before After Complicated requirement Limited access Expensive cost Long processing time Office hours Simpler requirement Wider reach Easily accessed by everyone Low cost, some nearly free You can do it anytime, anywhere Before After

Disruptive. How?

Payments made easy

Midtrans currently offers 18 different payment methods, making us the largest payment platform in the country. Midtrans also supports payment features, including installment and tokenization. More payment method is regularly added.

Our happy clients 2800+ merchants

How Payment Gateway Works

GRC Challenges on FinTech Compared to Conventional Financial Institution

1. Highly Regulated Peraturan Anggota Dewan Gubernur No. 19/10/PADG/2017 tentang Gerbang Pembayaran Nasional (National Payment Gateway) Peraturan Bank Indonesia No. 18/17/PBI/2016 Perubahan Kedua atas Peraturan Bank Indonesia No. 11/12/PBI/2009 tentang Electronic Money Peraturan Bank Indonesia No. 18/40/PBI/2016 tentang Penyelenggaraan Pemrosesan Transaksi Pembayaran Peraturan Bank Indonesia No. 19/8/PBI/2017 tentang National Payment Gateway Peraturan Bank Indonesia No. 19/10/PBI/2017 tentang Anti Pencucian Uang dan Pencegahan Pendanaan Terorisme Surat Edaran BI No. 18/41/DKSP tentang Penyelenggaraan Pemrosesan Transaksi Pembayaran Surat Edaran BI No.18/21/DKSP Perubahan atas Surat Edaran Bank Indonesia No.16/11/DKSP tentang Penyelenggaraan (Electronic Money

Business Continuity Planning 2. Overlapped Requirement Peraturan BI PCI-DSS ISO 27001 Business Continuity Planning

3. Fast-changing Technology SSL Technology is no longer secure Currently, TLS Technology is the standard for security Massive changes required

4. Higher Exposure on Information Security Risk Many public endpoints Many interconnection via public network Lack of security awareness

Risk Based Approach Information Security Management System Risk identification Compliance mapping User education

IFRS 9/ PSAK 71 Based on PSAK 71 , the intention of management for each financial instrument no longer be a major determinant in the classification of financial assets Classification of financial assets should be based on the contractual cash flows of the financial asset (SPPI test) and business objectives in managing the financial assets (Business Model Test) Amortized Cost vs FVOCI vs FVTPL

Credit Valuation ECL PD EAD LGD

Impact of IFRS 9 Adoption

Others Business valuation Big data valuation Going concern assumption Audit on complex transaction

Terima kasih

References Hoot Suite PWC Publication KPMG Publication Midtrans