Video summary

PH Draf Eksposur (DE) PSAK 408 tentang Akuntansi Asuransi Syariah

Main summary

Key takeaways

Business

Business / Industry Context (Why This PSAK Matters)

  • The event is a public hearing on Exposure Draft PSAK 408: Accounting for Sharia Insurance.
  • Sharia insurance (takaful) is described as a risk-sharing/social cooperation mechanism:
    • Participants contribute funds into tabarru (grant) pools.
    • Claims are paid from those pools.
  • The PSAK update is positioned as necessary due to:
    • Adoption/impact of IFRS 17 / PSAK 117 in conventional insurance accounting (raises applicability questions for sharia insurance).
    • Evolving fatwa guidance from DSN-MUI (National Sharia Council).
    • The need for financial reporting that better supports regulators and stakeholders in assessing management of tabarru funds.

Key Accounting / Operational Decisions Proposed in PSAK 408 (Business Execution Impact)

1) Standard’s Structure: “3 Elements” Model for Sharia Insurance Contracts

The PSAK 408 framing separates contract economics into:

  • Insurance risk element
  • Reward/service element for the operator/manager
  • Investment element (investment of funds)

Practical implication: companies must:

  • Split and report these elements separately at initial recognition
  • Present and disclose them distinctly later

2) PSAK/IFRS-Aligned Concepts with Sharia Adjustments

  • The draft is described as generally aligned with PSAK 117 concepts, with modifications for sharia products:
    • Insurance risk measurement uses a concept adapted from PSAK 117.
    • Time value of money: explicitly stated as not used (contrasted with IFRS 17/PSAK 117 approaches).

3) Contract Scope: What PSAK 408 Covers (and Does Not)

Included in PSAK 408 exposure draft scope:

  • Sharia insurance contracts issued by sharia entities
  • Sharia reinsurance contracts issued
  • Sharia reinsurance contracts held are mentioned in discussion, but the draft is described as focusing on insurance contracts rather than all entity transactions.

Excluded:

  • Sharia social security programs (explicitly called out as excluded)
  • Accounting from the policyholder/holder perspective is not covered (handled in other PSAKs)

Product / Fund Mechanics: Tabarru vs Tanahud (and Why It Changes Accounting)

4) Fund Segregation Required: Tabarru vs Tanahud

Speakers emphasize sharia insurance products may involve two fund types that must not be mixed:

  • Tabarru funds: grant for mutual assistance (typically paid upon certain insured events)
  • Tanahud funds: grant-like mechanism tied to living benefits / “alive until period” style outcomes

Practical implication: companies must maintain separate accounting, including sub-fund accounting where needed.

5) Aggregation and Sub-Funds

PSAK 408 introduces rules to:

  • Aggregate only similar risks
  • Separate profitable vs loss-making contracts (high level)
  • Allow sub-funds when required by contract terms/binding arrangements

Measurement Model Changes (Execution Requirements)

6) Two Measurement Models Only (No VFA / Variable Fee Approach)

PSAK 408 uses only:

  • Simple model
  • General model

Model selection rule (timeline/threshold):

  • Coverage period up to 12 months → Simple model
  • Coverage period more than 12 months → General model

7) Initial Recognition at the Start of the Coverage Period + Element Separation

The draft requires:

  • Initial recognition at the beginning of the coverage period
  • Separation into insurance risk, reward, and investment components at inception (not deferred)

8) Subsequent Measurement: Recalculation at Each Reporting Date

At each financial reporting date:

  • Contracts are re-measured (recalculated)

9) “Insurance Margin” as a Key Concept (and Relation to Underwriting Surplus)

  • Insurance margin is used to derive insurance service revenue.
  • There is extensive discussion on:
    • How underwriting surplus of tabarru funds is distributed
    • When operator income is recognized

Underwriting Surplus: Operational + Governance Implications

10) Distribution Timing: Operator Share Recognized at “Allocation/Determination”

Recognition of operator income tied to underwriting surplus:

  • Not recognized until surplus is actually determined/allocated
  • Framed as similar in spirit to dividend recognition

Practical implication: companies must strengthen governance around:

  • When surplus is determined
  • How audit/solvency conditions affect timing
  • Evidence required for audit and regulator review

Transfer of Participant Funds / Portfolio Transfers (How It Differs from Conventional M&A Accounting)

The draft covers transfer of participant funds when portfolios move, with emphasis that:

  • It is not a business combination (explicitly contrasted with PSAK 103 / IFRS-style control/share acquisition accounting)
  • It should avoid:
    • Recognition of goodwill
    • Conventional fair value remeasurement practices
  • Transfer accounting aims to preserve consistency with sharia fund ownership principles:
    • Participant collective ownership
    • Company acting as manager

Effective Date & Transition (Targets / Timelines)

  • No early adoption option mentioned.

  • Effective date: applies to fiscal years starting on/after January 1, 2028 (also discussed in terms of prospective application).

  • Transition approach:

    • Comparative period logic: apply from Jan 1, 2028
    • Comparatives recalc for Jan 1, 2027 (as explained in discussion)

Feedback closure / timeline:

  • Written feedback deadline requested: March 13, 2026
  • Goal: finalize PSAK 408 in first semester 2026, then hold follow-up limited hearings (industry + regulators + actuaries)

Concrete Examples / Case Practices Raised in Q&A (Actionable Implementation Items)

  1. Portfolio transfer accounting challenge (unit-linked / actuarial vs PSAK straight-line)

    • Whether straight-line service fee/income recognition aligns with regulatory technical reserves (SOJK) methods,
    • Especially when contribution payment periods differ from coverage periods.

  2. Surplus distribution governance

    • How accounting recognition should not conflict with:
      • Solvency/liquidity requirements
      • Timing of audited reports
      • Policy-level distribution clauses
    • Proposed feedback concept: accrual practices may need adjustment based on the standard’s principle-based recognition-at-allocation approach.

  3. Insurance margin amortization vs underwriting surplus

    • How insurance margin amortization affects (or does not affect) tabarru underwriting surplus distribution.

  4. Reinsurance inclusion and harmonization

    • Requested clarity on:
      • Contract terminology alignment (e.g., ujrah vs service fee, “reward” naming)
      • Harmonization between POJK and PSAK to reduce differences

Regulatory Execution Linkage (OJK / POJK Impacts)

A regulator-side speaker connected PSAK changes to POJK 27 (2025) style requirements, including:

  • Asset–fund separation
  • Ability/requirement to split tabarru/tanahud into sub-funds
  • Need for approval and oversight involving DPS
  • Operational readiness (e.g., IT systems) due to increased accounting complexity
  • Implications for:
    • Solvency/capital computation approach
    • Reporting structure (PAD/financial reporting preparations mentioned)
    • Liquidity/solvency conditions for grant/distribution permissions

Frameworks / Playbooks Explicitly or Implicitly Used

  • Exposure draft public hearing process
    • Gather industry/regulator input → incorporate revisions → finalize standard
  • Element separation framework (3-part model)
    • Insurance risk / reward / investment
  • Measurement model selection framework
    • Simple vs General based on coverage period threshold (12 months)
  • Governance timing framework
    • Operator share recognized upon determination/allocation of underwriting surplus
  • Fund segregation framework
    • Tabarru vs Tanahud separated (no mixing), potentially via sub-funds

Key Presenters / Sources (As Named in Subtitles)

Regulators / Institutions

  • Mr. Dr. Ihda Muktianto, S., M.Sc. — Director of Development and Supervision of Financial Professions, Ministry of Finance
  • Mrs. Dr. Erawati, S.H., KN., MT. — Deputy Commissioner for Supervision, Insurance, Guarantee and Pension Funds, Financial Services Authority / OJK
  • Mr. Iwan Pasila — Acting Head of the PPDP Regulation and Development Department, Financial Services Authority / OJK
  • Mr. Yusman — PPDP Regulation and Development Department, Financial Services Authority / OJK
  • Mr. Agus Haryadi — Chairman, Sharia Non-Bank Financial Institutions Division, DSN-MUI

IAI / DSAS (Sharia Accounting Standards Board)

  • Mr. Yusuf Wibisana — Member of National Management Board of Xisio; Chairman of Committee of Sharia Accountants of IAI
  • Mr. Yasir — Chairman of DSAS IAI
  • Mr. Muhamad Bagus Teguh
  • Mr. Heri Setiadi
  • Mr. Alis Subiantoro
  • Mr. Yakub — Moderator; Director of IAI Professional Standards and Practices

IAI Leadership

  • Ms. Eli Zarni Husin — IAI Executive Director
  • Mr. Januarto Alamsyah — IAI Center Director

Other Named Contributors in the Session (Q&A / Mentions)

  • Mr. Fahmi Bah — PT Reasuransi Syariah Indonesia / Rindo Syariah
  • Mrs. Widya — Manuif
  • Mr. Sangkudwijaya — Islamic Insurance Society
  • Mr. Agus Haryadi — referenced again regarding DSN fatwa matters

Noted Standards / Frameworks Referenced as Sources

  • PSAK 408
  • PSAK 117 (IFRS 17 adoption)
  • IFRS 17
  • Other PSAKs referenced: PSAK 109, PSAK 240, PSAK 405, PSAK 410, PSAK 115
  • POJK 27 (2025)

Original video