Assessing the Impact of the Covid-19 Pandemic on the Impairment of Murabahah Receivables
One of the latest issues among Islamic accountants is the impact of the Covid-19 pandemic on the decline in the value of murabahah receivables. As reported by iaiglobal.or.id, Tuesday, April 14, 2020, in a press release regarding the impact of the Covid-19 pandemic on the implementation of ISAK 102, a decrease in the value of murabahah receivables.
The press release was made as a quick response from the Sharia Accounting Standards Board (DSAS) to the issuance of the Financial Services Authority Regulation (POJK) Number 11 / POJK.03 / 2020 concerning National Economic Stimulus as a Countercyclical Policy on the Impact of the Spread of Coronavirus Disease 2019. Until this article written, to be precise Wednesday 15 April 2020 at 18.29 WIB, the Covid-19 pandemic has spread in 210 countries in the world and caused 127,493 deaths. In Indonesia alone, as of April 15 2020 at 12.00 WIB, 5,136 confirmed positive corona, 446 recovered, and 469 people died.
This policy arose because of observing the development of coronavirus disease 2019 (covid-19) which had a direct or indirect impact on the performance and capacity of debtors including micro, small and medium business (MSME) debtors, thus potentially disrupting banking performance and financial system stability, which in the end it can affect economic growth.
Islamic banks, both Islamic commercial banks (BUS), sharia business units (UUS) and Islamic public finance banks (BPRS), according to POJK Number 11 / POJK / 2020, can implement policies that support economic growth stimulus for debtors affected by the spread of covid. -19, including MSME debtors, by still observing the principle of prudence. The intended debtors of this policy are debtors who have difficulty fulfilling obligations to the Bank because the debtor or debtor's business is affected by the spread of covid-19, either directly or indirectly in the economic sector, including tourism, transportation, hospitality, trade, processing, agriculture, and mining. Financing restructuring can be done by reducing the murabahah margin, extending the term, and adding financing facilities. When applied in Islamic banks, especially murabahah financing, the debtor in question is a buying customer (al-musytari).
Before we discuss this further, it is necessary to first get to know, what is murabahah? And how are murabahah receivables measured? According to PSAK 102: Murabahah Accounting, which was approved by the Financial Accounting Standards Board on January 6, 2016, murabahah is an agreement to buy and sell goods with a selling price equal to the cost plus the agreed profit and the seller must disclose the cost to the buyer.
Quarter three money, but with a different editorial staff, the MUI National Sharia Council (DSN) through Fatwa No. 111 / DSN-MUI / IX / 2017 concerning Murabahah Sale and Purchase Agreement, the bai 'al-murabahah contract is a contract of buying and selling an item by confirming the purchase price to the buyer and the buyer pays a higher price as profit. In the general provisions of the fatwa, the sale and purchase of murabaha is carried out on goods that are already owned by the seller at the time the goods are offered to prospective buyers, this type of murabahah is known as bai 'al-murabahah al-'adiyyah. Meanwhile, the second type is bai 'al-murabahah li al-amir bi al-syira', where the sale and purchase of murabahah is carried out on the basis of orders from the prospective buyer. Murabahah buying and selling that occurs in Islamic entities, such as Islamic banks, is the second type.
We turn to murabahah receivables, in the same fatwa, the price in the murabahah contract must be stated with certainty at the time of the contract, whether determined through bargaining, auction, or tender. In the context of Islamic entities, prices are clearly determined by bargaining. More deeply, the payment of the price in murabahah can be made in cash (bai 'al-hal), tough (bai' al-mu'ajjal), gradually / in installments (bai 'bi al-taqsith). Murabahah receivables can arise from murabahah in a tough manner or murabahah in stages / installments.
Let's get back to impairment. According to the press release, it was explained that for impairments, ISAK 102 requires entities to continue to use accounting policies that were implemented before 2020, such as incurred loss, regulatory provisioning, or other approaches, as long as this approach produces relevant and reliable information. . ISAK 102 provides guidance for entities that apply the incurred loss model, while entities that apply regulatory provisioning or other approaches are exempted.
Based on the incurred loss model, Islamic banks must evaluate whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and an impairment loss occurs if there is objective evidence of impairment as a result of an adverse event occurring after the initial recognition of the asset. These events affect the estimated future cash flows of a financial asset or group of financial assets that can be estimated reliably.
Was it an adverse event? An adverse event can be in the form of a breach of contract, such as a customer experiencing default or delinquency in payments. Another form is that Islamic banks provide relief to customers that cannot be given if the customer does not experience difficulties, for economic or legal reasons related to financial difficulties experienced by the customer, this liability restructuring is not absolute evidence of an adverse event that has occurred, so it will be carried out. the formation of an impairment loss. Because it could be, the buying customer in murabahah financing can recover and fulfill their liabilities.
According to the press release, it was further explained that in conditions of high levels of uncertainty, adequate disclosure in the notes to financial statements (CALK) will provide the transparency needed by users of financial statements. This is in line with PSAK 101: Presentation of Sharia Financial Statements, which was endorsed by the Sharia Accounting Standards Board (DSAS) on May 25 2016, which reads; "Notes to financial statements provide information that is not presented elsewhere in the financial statements, but that information is relevant to understanding financial statements."
Islamic banks, according to the press release, need to disclose the impact of implementing economic stimulus policies, as well as risks that arise and risk management carried out by Islamic banks. For example, disclosures about financing affected by covid-19, restructuring of financing affected by covid-19, and the risk of collectibility from this financing. These types of disclosures are in line with the contents of PSAK 101 which reads: “Islamic entities disclose information about assumptions made regarding the future, and other major sources of estimation uncertainty at the end of the reporting period, which have significant risks resulting in material adjustments to the carrying amount of assets, liabilities , and temporary syirkah funds in the next reporting period. "
At the end of this explanation, the author reminds readers and especially to myself, let us contribute to mitigating the impact of the spread of Covid-19, according to our respective abilities. Allah has reminded us in al-Qur'an surah at-Taghabun, 64 verse 16 which means: "So fear Allah according to your ability, listen, obey and provide a good living for yourself. Whoever is kept from stinginess, then they are the lucky ones. "
May I and all readers be lucky people.
Author:
Kautsar Riza Salman, SE., MSA., Ak., BKP., SAS., CA., CPA (Aust.)
Lecture STIE Perbanas Surabaya dan Pengurus IAI Jatim Bidang Akuntan Syariah
