Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in Indonesia

The Sharia insurance industry in Indonesia has shown significant growth, although in the past decade, there has been a decline in contribution growth, particularly in the general Sharia insurance sector. This study aims to analyze the impact of IFRS 17 implementation on the revision of PSAK 108. The...

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Main Authors: Abdul Ghoni, Erny Arianty
Format: Article
Language:English
Published: Muhammadiyah University Press 2024-12-01
Series:Riset Akuntansi dan Keuangan Indonesia
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Online Access:https://journals2.ums.ac.id/index.php/reaksi/article/view/6959
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author Abdul Ghoni
Erny Arianty
author_facet Abdul Ghoni
Erny Arianty
author_sort Abdul Ghoni
collection DOAJ
description The Sharia insurance industry in Indonesia has shown significant growth, although in the past decade, there has been a decline in contribution growth, particularly in the general Sharia insurance sector. This study aims to analyze the impact of IFRS 17 implementation on the revision of PSAK 108. The research method employed is descriptive analysis using both qualitative and quantitative approaches. Qualitatively, the study applies a descriptive analysis approach through interviews, while quantitatively, it uses the Analytical Hierarchy Process (AHP) method. The findings reveal that 66% of respondents believe that the implementation of IFRS 17 will have a significant impact on the recording, measurement, and presentation of financial statements, with the level of impact varying based on the type of insurance business. Regarding the impact on the RBC (Risk-Based Capital) of insurance companies, 20% indicated a low impact, while 40% reported medium to high impacts. These findings suggest the need for operational system adjustments, capital strengthening, and enhancement of human resource capacity to address the challenges posed by IFRS 17 implementation in Indonesia.
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spelling doaj-art-3d855178e8714db4a274c9e0b09dc3a72025-08-20T03:17:27ZengMuhammadiyah University PressRiset Akuntansi dan Keuangan Indonesia2541-61112024-12-019329930710.23917/reaksi.v9i3.69596991Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in IndonesiaAbdul Ghoni0Erny Arianty1Universitas Muhammadiyah JakartaPoliteknik Keuangan Negara STANThe Sharia insurance industry in Indonesia has shown significant growth, although in the past decade, there has been a decline in contribution growth, particularly in the general Sharia insurance sector. This study aims to analyze the impact of IFRS 17 implementation on the revision of PSAK 108. The research method employed is descriptive analysis using both qualitative and quantitative approaches. Qualitatively, the study applies a descriptive analysis approach through interviews, while quantitatively, it uses the Analytical Hierarchy Process (AHP) method. The findings reveal that 66% of respondents believe that the implementation of IFRS 17 will have a significant impact on the recording, measurement, and presentation of financial statements, with the level of impact varying based on the type of insurance business. Regarding the impact on the RBC (Risk-Based Capital) of insurance companies, 20% indicated a low impact, while 40% reported medium to high impacts. These findings suggest the need for operational system adjustments, capital strengthening, and enhancement of human resource capacity to address the challenges posed by IFRS 17 implementation in Indonesia.https://journals2.ums.ac.id/index.php/reaksi/article/view/6959ifrs 17, sharia insurance accounting, psak 108
spellingShingle Abdul Ghoni
Erny Arianty
Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in Indonesia
Riset Akuntansi dan Keuangan Indonesia
ifrs 17, sharia insurance accounting, psak 108
title Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in Indonesia
title_full Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in Indonesia
title_fullStr Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in Indonesia
title_full_unstemmed Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in Indonesia
title_short Implementation of IFRS 17 in the PSAK 108 Revision on Sharia Insurance Transactions in Indonesia
title_sort implementation of ifrs 17 in the psak 108 revision on sharia insurance transactions in indonesia
topic ifrs 17, sharia insurance accounting, psak 108
url https://journals2.ums.ac.id/index.php/reaksi/article/view/6959
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