Jakarta: Vice Minister of Finance Mardiasmo attended the State Financial Management Dialogue with the theme "Increasing Efficiency of State Financial Management in the Digital Era 4.0 Towards Golden Indonesia" at Balai Kartini in Jakarta on Tuesday.
The Chair of the National Management Board of the Indonesian Accountants Association (IAI) pointed out the dynamics of business model changes in the digital era 4.0 which are no longer able to be captured thoroughly by current accounting report standards.
Business valuations in the digital era currently emphasize the advantages of intangible investment and innovation assets, such as investments in human resources, compared to valuation of tangible assets, such as buildings and machinery.
"The direction of digital era is going to less assets but very has high values. So, there are no longer big factories but if necessary small companies can control the world. The era is shifting from tangible to intangible and innovation," the Ministry of Finance's website quoted him as saying.
Furthermore, he stated that the current accounting report standards still measures investment in human resources as a burden not as an institutional asset. This can result in mislead information on the valuation of a company's assets.
"Including intangibles is human capital. We have not included human capital to date as asset capitalization. Some are still operating expenses or costs. Even though it clearly contributes to the balance sheet. However it does not appear on the balance sheet. We have to fix this together," he was quoted as saying.