Subsidiary Disclosures Under PSAK 119
PSAK 119 takes effect on 1 January 2027 and reduces disclosures for subsidiaries without public accountability whose parent prepares consolidated statements. Its amendment was approved on 24 November 2025.
Key points
- Recognition, measurement and presentation still follow the relevant PSAK. Only disclosure is reduced.
- The amendment removes separate statements of intermediate parents from its scope.
The Financial Accounting Standards Board of the Institute of Indonesia Chartered Accountants approved PSAK 119 Subsidiaries without Public Accountability: Disclosures on 27 August 2025. It is based on IFRS 19, takes effect on 1 January 2027, and may be applied early.
PSAK 119 reduces disclosure requirements set by other standards. It is for subsidiaries without public accountability whose parent prepares consolidated statements under SAK Indonesia, SAK Internasional or IFRS Accounting Standards.
What is reduced
Public hearing material describes the problem being addressed. A subsidiary using full Indonesian standards carries disclosures that may not match its needs, while one using SAK EP needs additional accounting records for its parent’s consolidation.
Under PSAK 119, recognition, measurement and presentation still follow the relevant standard. Property, plant and equipment, for example, stays under PSAK 216, while its disclosures follow PSAK 119.
The material gives property, plant and equipment disclosures as an example. Comparative information is not required for the reconciliation of opening and closing carrying amounts.
An entity applying PSAK 108, PSAK 117 or PSAK 233 still meets all disclosures in those standards. Its financial statements also state that PSAK 119 has been applied.
The 24 November 2025 amendment
The amendment follows the Amendments to IFRS 19 issued on 21 August 2025 and takes effect on the same date, 1 January 2027. Its scope no longer covers separate statements of intermediate parents.
It also removes certain disclosure objectives and reduces disclosures on supplier finance arrangements. Disclosures on management-defined performance measures are replaced with a cross-reference to PSAK 118.
A group subsidiary wanting to use it for financial year 2027 should confirm two things first: that it has no public accountability, and that its parent’s consolidated statements follow one of the frameworks above.
Presentation changes taking effect at the same time are covered in Five Profit or Loss Categories in PSAK 118.
Frequently asked questions
Can a company choose not to apply PSAK 119?
Yes. The public hearing material on the exposure draft describes it as voluntary for eligible subsidiaries.