Accounting & Bookkeeping · KBLI 24100

Steel Industry Accounting

Inventory scrap-to-product, process costing, and cyclical asset impairment

Compliance Warning

This industry is considered high risk and may receive closer attention from tax authorities. Professional tax consultation is strongly recommended.

PSAK 14PSAK 16PSAK 48

What usually goes wrong

Scrap-to-Product Costing

Valuation from scrap, ferro alloys to finished products with fluctuating prices.
Cyclical Impairment

Highly cyclical industry — when global prices fall, assets must be tested for significant impairment.
Multi-Stage Process Costing

Process through DRI/EAF melting, continuous casting, rolling needs per-stage costing.

01
Steel Cost Accounting

Process costing per production stage with yield tracking.
- Measurable yield
- Clear conversion cost
02
Inventory Valuation

Lower of cost or NRV including hedging impact.
- Fair inventory
03
Impairment Testing

Periodic CGU impairment testing with value-in-use model.
- Timely impairment

PSAK 14

Inventories

Scrap, billet, slab, and finished steel inventory valuation
PSAK 16

Fixed Assets

Capitalization of blast furnace, EAF, rolling mill
PSAK 48

Asset Impairment

Impairment testing when global steel prices decline significantly

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

By cost center: iron making, steel making, casting, rolling. By-products credited as cost reduction.

Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.

Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.

Reports are prepared with clear documentation and traceable transaction data.

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.