From PSAK 201 to PSAK 118: Pre-Implementation Analysis of a Utility Company's Statement of Profit or Loss

Abstract

PSAK 118, Indonesia’s adoption of IFRS 18, will introduce a more structured statement of profit or loss from 2027 by separating operating, investing, and financing activities and requiring new performance subtotals. This study examines how these requirements would affect the presentation of financial performance in an Indonesian utility company before mandatory implementation. Using a qualitative single-case approach, the study analyzes the company’s audited 2025 consolidated financial statements, applies a PSAK 118 gap-analysis framework, and incorporates interviews with three managers responsible for financial reporting, consolidation, and accounting-policy development. Under the current PSAK 201-based presentation, operating income is IDR 49.226 trillion and profit before income tax is IDR 12.993 trillion. After applying the PSAK 118 presentation structure, operating profit becomes IDR 47.785 trillion, while a new profit before financing and income taxes subtotal of IDR 50.324 trillion is introduced. Profit before income tax remains unchanged at IDR 12.993 trillion. The main implementation challenges involve aggregated accounts, foreign-exchange classification, data granularity, and reporting-system readiness. The findings demonstrate that PSAK 118 can change how financial performance is understood without changing recognized profit, while providing clearer performance measures and more consistent comparisons across entities.