Functions and Authority of the Reporting Standards Committee

The Financial Reporting Standards Committee (FRSC) was established by the Ministry of Finance to develop accounting standards in Indonesia. The committee operates independently while under the ministry’s coordination. Its core duties include setting, revising, and publishing financial reporting standards.

FRSC holds authority to issue technical guidelines, monitor compliance by public and private entities, and collaborate with the Indonesian Institute of Accountants. Its powers encompass binding accounting policies and regular reviews to align with international practices.

Implementation of FRSC standards enhances financial statement transparency, facilitates comparability across companies, and supports investment decisions. For taxpayers and businesses, compliance is essential for accurate reporting and can lower audit risk.