Jakarta (ANTARA) - The Indonesian Institute of Public Accountants\n(IAPI) is preparing to build a sustainability assurance ecosystem in\nIndonesia to improve the quality and credibility of sustainability\nreports.<\/p>\n
IAPI National Board Member Sempurna Bahri stated that global\naccounting developments are currently shifting towards the creation of\nsustainability reports linked to Environmental, Social, and Governance\n(ESG) aspects for companies, while still including financial\nreports.<\/p>\n
\u201cSo, readers of financial reports will check whether there are any\nviolations committed by the company related to laws. These laws could\ncover labour, environmental or waste regulations, and so on. It\u2019s not\njust about financial performance; this aims to build the trust of\nstakeholders\u2014users of financial reports\u2014in managing risks and complying\nwith regulations,\u201d he said during a press conference on Sustainability\nAssurance in Jakarta on Tuesday.<\/p>\n
On that occasion, IAPI appreciated the Financial Services Authority\u2019s\n(OJK) steps to strengthen the Sustainable Finance regulatory framework\nin Indonesia through the Draft Financial Services Authority Regulation\n(RPOJK) on the Implementation of Sustainable Finance for Financial\nSector Business Actors (PUSK), Issuers, and Public Companies.<\/p>\n
This RPOJK requires PUSK to prepare sustainability reports based on\nSustainability Reporting Standards Statement (PSPK) 1, \u201cGeneral\nRequirements for Disclosure of Sustainability-Related Financial\nInformation\u201d, and PSPK 2, \u201cClimate-Related Disclosures\u201d.<\/p>\n
In this context, IAPI emphasises that sustainability reports and\nfinancial reports are closely interconnected and must be synchronised\nwith one another. The information presented in sustainability reports\nmust be consistent and aligned with that reflected in financial reports,\nthereby forming a unified and integrated corporate reporting\nframework.<\/p>\n
In its review of the RPOJK, IAPI paid special attention to the use of\nthe term \u201cverification\u201d in the RPOJK as a means of providing assurance\nover sustainability reports.<\/p>\n
It considers that the terms verification and assurance have\nfundamental differences: verification focuses more on technical checks\nof data, whereas assurance involves a more comprehensive independent\nevaluation, encompassing aspects of systems, processes, materiality\nprinciples, and the consistency of presented information.<\/p>\n
\u201cSo, when investors or market participants want to make investment\ndecisions, what they are looking for now is not just financial reports\nor financial information, but also how the company manages its\noperations in line with established concepts, making sustainability\nreports an important element in the capital markets and financial\nsector,\u201d said IAPI National Board Member Susanto.<\/p>\n
Furthermore, it explained that assurance practices cannot be\nseparated from the international standards ecosystem, particularly\nassurance over sustainability information, which must refer to several\ninternational-level standards.<\/p>\n
The second standard is the International Ethics Standards for\nSustainability Assurance (IESSA) as an ethical guideline for conducting\nsustainability assurance, which is currently in the adoption phase by\nIAPI\u2019s Professional Ethics Board.<\/p>\n
The third is International Education Standards (IES) 2\u20134, which\nintegrate competencies related to sustainability assurance as mandatory\ncompetencies for public accountants.<\/p>\n
Finally, there is the Quality Management Standard (SMM) adopted from\nthe International Standards on Quality Management to strengthen quality\nmanagement at the Public Accounting Firm (KAP) level. This is done to\nensure that KAPs and their personnel meet their responsibilities in\naccordance with professional standards and applicable laws and\nregulations, and to carry out engagements in accordance with those\nstandards and provisions.<\/p>\n
\u201cIAPI feels the need to introduce this ecosystem to improve the\nquality and credibility of sustainability reports, which are\nincreasingly needed by the business world and capital markets,\u201d Susanto\nrevealed.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/iapi-is-preparing-to-build-a-sustainability-assurance-ecosystem-1777369885", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }