Guidelines on Accounting Treatment for Securities Companies

To:

Board of Directors and Board of Commissioners of Securities Companies;
Board of Directors of the Indonesia Stock Exchange (PT Bursa Efek Indonesia);
Board of Directors of the Indonesia Stock Clearing and Guarantee Company (PT Kustodian Sentral Efek Indonesia);
Board of Directors of the Indonesia Stock Clearing and Guarantee Company (PT Kliring Penjaminan Efek Indonesia);
Indonesia Securities Association (Asosiasi Perusahaan Efek Indonesia);
Indonesia Investment Manager Association (Asosiasi Manajer Investasi Indonesia);
Financial Services Accountant Forum (Forum Akuntan Sektor Jasa Keuangan); and
Institute of Certified Public Accountants of Indonesia (Institut Akuntan Publik Indonesia),

At their respective locations.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 25 /SEOJK.04/2021

CONCERNING
GUIDELINES ON ACCOUNTING TREATMENT FOR SECURITIES COMPANIES

In relation to the provisions of Article 5 paragraph (3) of Financial Services Authority Regulation Number 20 /POJK.04/2021 concerning the Preparation of Financial Statements for Securities Companies (State Gazette of the Republic of Indonesia Year 2021 Number 223, Supplement to the State Gazette of the Republic of Indonesia Number 6725), and in line with the convergence program of Financial Accounting Standards (SAK) to International Financial Reporting Standards (IFRS), it is necessary to regulate provisions regarding guidelines on accounting treatment for securities companies as follows:

I. GENERAL PROVISIONS

In this Circular Letter of the Financial Services Authority, the following terms are defined:

Securities Company is a party that conducts business activities as an underwriter of securities, securities trading intermediary, and/or investment manager.
Financial Accounting Standards, hereinafter abbreviated as SAK, are statements and interpretations issued by the Financial Accounting Standards Board of the Indonesian Accountants Association and the Sharia Financial Accounting Standards Board of the Indonesian Accountants Association, as well as regulations in the field of capital markets for entities conducting activities in the capital market.

II. IMPLEMENTATION OF GUIDELINES ON ACCOUNTING TREATMENT FOR SECURITIES COMPANIES

In the preparation of financial statements, whether for the purpose of submission to the public or to the Financial Services Authority, Securities Companies are required to prepare financial statements based on the guidelines on accounting treatment for Securities Companies as contained in the Appendix, which is an integral part of this Circular Letter of the Financial Services Authority.
The guidelines on accounting treatment for Securities Companies are a reference or guideline in the preparation of general financial statements that must be applied by Securities Companies.
In the event that there is accounting treatment not regulated in the guidelines on accounting treatment for Securities Companies, such unregulated accounting treatment must follow the SAK.
In the event of changes to the SAK and/or new SAK after the effective date of this Circular Letter of the Financial Services Authority, the preparation of financial statements by Securities Companies must follow the latest SAK provisions, unless otherwise stated by the Financial Services Authority.
The obligation to prepare financial statements by Securities Companies as referred to in this Circular Letter of the Financial Services Authority applies to fiscal year periods starting on or after January 1, 2022.

This copy is consistent with the original
Director of Legal Affairs 1
Legal Department signed
Mufli Asmawidjaja

III. CLOSING

The provisions in this Circular Letter of the Financial Services Authority shall take effect on the date of determination.

Determined in Jakarta on October 13, 2021

EXECUTIVE HEAD OF CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HOESEN

APPENDIX
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 25 / SEOJK.04/2021

CONCERNING
GUIDELINES ON ACCOUNTING TREATMENT FOR SECURITIES COMPANIES

GUIDELINES ON ACCOUNTING TREATMENT FOR SECURITIES COMPANIES

A. GENERAL PROVISIONS

In this Circular Letter of the Financial Services Authority, the following terms are defined:

a. Securities Company is a party that conducts business activities as an underwriter of securities, securities trading intermediary, and/or investment manager.

b. Securities are securities instruments, namely debt acknowledgment instruments, commercial papers, shares, bonds, debt certificates, units of participation in collective investment contracts, forward contracts on Securities, and any derivatives of Securities.

c. Financial Accounting Standards, hereinafter abbreviated as SAK, are statements and interpretations issued by the Financial Accounting Standards Board of the Indonesian Accountants Association and the Sharia Financial Accounting Standards Board of the Indonesian Accountants Association, as well as regulations in the field of capital markets for entities conducting activities in the capital market.

d. Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) based on current market conditions (i.e., exit price), regardless of whether that price is directly observable or estimated using other valuation techniques.

e. Date Financial Statements are Authorized for Issue is the date the Securities Company states responsibility for the financial statements.

f. Materiality is the magnitude of accounting information, which depends on its size and nature, and if omitted, misstated, or obscured, it is estimated to sufficiently influence the decisions made by the primary users of general purpose financial statements.

g. Party is an individual, company, joint venture, association, or organized group.

h. Control is a condition where an investor is exposed to or has rights to variable returns from its involvement with the investee Party and has the ability to affect those returns through its power over the investee Party.

i. Joint Control is contractual agreement to share Control over an arrangement, which exists only when decisions about relevant activities require the unanimous consent of all Parties sharing Control.

j. Consolidated Financial Statements are the financial statements of a business group in which assets, liabilities, equity, income, expenses, and cash flows of the parent entity and subsidiary entities are presented as a single economic entity.

k. Separate Financial Statements are financial statements presented by an entity, where the entity may choose to record its investments in subsidiary entities, associate entities, and joint ventures at acquisition cost, Fair Value, or amortized cost according to the classification of its financial assets, or using the equity method.

l. Related Party is a person or entity related to the entity preparing the financial statements.

m. Investment Entity is an entity that:

obtains funds from one or more investors with the purpose of providing those investors with investment management services;
states commitment to investors that its business purpose is to invest funds solely to obtain returns from capital appreciation, investment income, or both; and
measures and evaluates the performance of all its investments based on Fair Value.

n. Significant Influence is the power to participate in the decision-making of the financial and operating policies of the investee Party, but not controlling or jointly controlling those policies.

o. Asset is an economic resource currently controlled by the entity as a result of past events.

p. Liability is the current obligation of the entity to transfer economic resources as a result of past events.

q. Multi-Asset Investment Fund in the Form of Collective Investment Contract, hereinafter referred to as Multi-Asset Investment Fund, is a container used to gather funds from specific investors to be subsequently invested by the Investment Manager in Securities Portfolios and/or non-Securities investment portfolios.

r. Infrastructure Investment Fund in the Form of Collective Investment Contract, hereinafter referred to as DINFRA, is a container in the form of a collective investment contract used to gather funds from investor public to be subsequently mostly invested in Infrastructure Assets by the Investment Manager.

s. Revenue is income arising from the normal activities of the entity.

t. Income is the increase in economic benefits during an accounting period in the form of inflows or increases in assets or decreases in liabilities that result in increases in equity, which do not arise from capital contributions.

u. Key Management Personnel are persons who have the authority and responsibility to plan, direct, and control the activities of the entity, directly or indirectly, including directors and commissioners (both executive and non-executive) of the entity.

Financial statements in this Circular Letter of the Financial Services Authority consist of:

a. Statement of financial position at the end of the period; b. Statement of profit or loss and other comprehensive income during the period;
c. Statement of changes in equity during the period;
d. Statement of cash flows during the period; e. Notes to the financial statements; and f. Comparative information regarding the immediately preceding period; and g. Statement of financial position at the beginning of the immediately preceding period when the Securities Company applies an accounting policy retrospectively or restates financial statement items, or when the Securities Company reclassifies items in the financial statements.

Securities Companies may use titles for reports other than those used in these provisions, provided that the title accurately represents the function and purpose of the Securities Company's financial statements, in accordance with the arrangements in the SAK.

In the presentation of the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows, it must be accompanied by a statement that the notes to the financial statements are an integral part of the financial statements.
Responsibility for Financial Statements
All members of the Board of Directors and Board of Commissioners of the Securities Company are jointly and severally responsible for the statement of responsibility for financial statements as regulated in relevant regulations regarding the obligation to submit periodic reports by Securities Companies.
Reporting Language
a. Financial statements must be presented in the Indonesian language. b. In the event that financial statements are also presented in languages other than Indonesian, the financial statements must contain the same information.
c. In the event of differences in interpretation due to language translation, the financial statements in the Indonesian language shall be used as the reference.
Presentation Currency
a. The presentation currency is the currency used in the presentation of financial statements. Financial statements must be presented in the Indonesian Rupiah. b. The presentation currency may differ from the functional currency.
c. In the event that the presentation currency differs from the functional currency, the Securities Company translates the results and financial position into Indonesian Rupiah using the procedures as regulated in the applicable SAK.
Reporting Period
a. The reporting period of a Securities Company covers a one-year period. b. In the event that the reporting period as referred to in letter a changes and financial statements are presented for a period longer or shorter than the one-year period, in addition to the coverage period of the financial statements, the Securities Company is required to disclose:

the reason why the reporting period is longer or shorter than one year; and
the fact that the amounts presented in the financial statements are not fully comparable.
c. The reporting date of subsidiary entities for consolidation purposes must be the same as the reporting date of the parent entity.
d. In the event that the reporting date of subsidiary entities as referred to in letter c differs from the reporting date of the parent entity, the subsidiary entity prepares (for consolidation purposes) additional financial information on the same date as the parent entity's financial statements to enable the parent entity to consolidate the subsidiary entity's financial information, unless impracticable. e. If impracticable, the subsidiary entity's financial statements may be used for consolidation purposes with the following requirements:
the difference in reporting dates is not more than 3 (three) months;
the Securities Company makes adjustments for the impact of significant transactions or events occurring between the reporting date of the subsidiary entity and the reporting date of the parent entity; and
the length of the reporting period and the difference between the end of the reporting periods are the same from period to period.

Offset
Securities Companies are not allowed to offset Assets and Liabilities or income and expenses, unless required or permitted by the SAK.
Presentation Consistency
a. Securities Companies are required to present and classify items in the financial statements consistently across periods, except:

after a significant change in the nature of the Securities Company's operations or a review of the financial statements, it is clearly evident that other presentation or classification would be more appropriate for use considering the criteria for determining and applying accounting policies in the SAK; or
presentation changes permitted by the SAK.
b. In the event that the Securities Company changes the presentation or classification of items in the financial statements, the Securities Company is required to restate comparative amounts, unless such restatement is impracticable.

Materiality and Aggregation
a. Materiality for aggregation purposes in this Circular Letter of the Financial Services Authority is as follows:

5% (five percent) of the total amount of Assets for Asset items;
5% (five percent) of the total amount of Liabilities for Liability items;
5% (five percent) of the total amount of equity for Equity items; or
10% (ten percent) of revenue for items in the statement of profit or loss and other comprehensive income.
b. Items with material values, even if they are not main components of the financial statements, must be presented separately, detailed, and explained in the notes to the financial statements.
c. Items with non-material values but which are main components of the financial statements or are specific to the Securities Company must be presented separately, detailed, and explained in the notes to the financial statements.
d. In the event that main components have no balance, such main components are not presented in the financial statements. e. Items with non-material values and not main components may be combined into a separate item and the nature of its main elements must be explained in the notes to the financial statements. f. In the event that the combination of several items as referred to in letter e results in a total value that is material, the element with the largest value must be presented separately.

Comparative Information
a. Quantitative information in annual financial statements is disclosed comparatively with the previous period for all amounts reported in the financial statements of the current period. b. Interim financial statements are presented comparatively with the same period in the previous year, except for the statement of financial position and information related to the financial position at the end of the interim period, which is compared with the statement of financial position and information related to the financial position at the end of the previous fiscal year.

Securities Companies apply the same accounting policies in interim financial statements as applied in annual financial statements.

c. Comparative information as referred to above that is narrative and descriptive from the financial statements of the previous period is restated.
d. Securities Companies may present additional comparative information in addition to the minimum comparative financial statements required by the SAK, provided that such information is prepared in accordance with the SAK. This comparative information may contain one or more financial statements as referred to in number 2 above, but does not have to consist of complete financial statements, and the Securities Company is required to present notes to the financial statements related to such additional reports. e. Securities Companies disclosing comparative information present at least two statements of financial position, two statements for each type of other statement, and notes to the financial statements. f. In the event that the Securities Company applies accounting policies retrospectively or restates items in the financial statements retrospectively, or reclassifies items in the financial statements, the Securities Company is required to present at least 3 (three) statements of financial position, 2 (two) statements for each type of other statement, and notes to the financial statements.

The Securities Company presents the statement of financial position at:

the end of the current period;
the end of the immediately preceding period; and
the beginning of the immediately preceding period.

g. In the event that the Securities Company reclassifies items in the financial statements but does not present the comparative period beginning statement of financial position, the reason must be explained.

Consolidated Financial Statements
a. Securities Companies that have Control over other entities are required to consolidate the financial statements of such other entities in the Consolidated Financial Statements. b. A Securities Company is considered to have Control over another entity when the Securities Company has the following:

power over the investee Party;
exposure or rights to variable returns from its involvement with the investee Party; and
the ability to use its power over the investee Party to affect the amount of investor returns.
c. In preparing Consolidated Financial Statements, the financial statements of the parent entity and subsidiary entities are combined one by one (line by line basis) by summing similar items of Assets, Liabilities, equity, income, and expenses.
d. Consolidated Financial Statements are prepared using the same accounting policies for transactions and other events in similar circumstances.

Separate Financial Statements
a. Securities Companies are required to prepare Separate Financial Statements, which are additional information in the Consolidated Financial Statements and presented as an appendix. b. Additional information as referred to in letter a consists of the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows, and notes to the financial statements.
Investments in Joint Ventures
Securities Companies with Joint Control over the investee Party record their investments in the investee Party as investments in joint ventures using the equity method or may choose to measure at Fair Value through profit or loss (fair value through profit or loss), as required by the relevant SAK.
Changes in Accounting Estimates, Changes in Accounting Policies, and Errors
a. Changes in accounting policies
Securities Companies may change an accounting policy only if the change:

is required by an SAK;
is mandated by regulations; or
results in financial statements that provide reliable and more relevant information about the impact of transactions, events, or other conditions on the financial position, financial performance, or cash flows of the Securities Company.

b. Changes in accounting estimates

Changes in accounting estimates occur due to changes in circumstances, new information, new developments, or additional experience, and therefore are not related to previous periods and are not corrections of errors.
The Securities Company recognizes the impact of changes in accounting estimates prospectively in profit or loss at:
a) the period of change, if the impact of the change is only on that period; or b) the period of change and future periods, if the change affects both.

c. Errors

The Securities Company is required to correct material prior period errors retrospectively in the first complete financial statements issued after the discovery of the error.
The obligation to correct as referred to in number 1) is done by:
a) restating comparative amounts for previous periods presented where the error occurred; or b) restating the opening balances of Assets, Liabilities, and equity for the earliest preceding period presented, if the error occurred before the earliest preceding period presented.
Prior period errors are corrected by restating retrospectively, unless it is impracticable to determine the specific period impact or the cumulative impact of the error.

Related Parties
a. The following are included as Related Parties:

Persons or close family members have a relationship with the Securities Company if such persons:
a) have Control or Joint Control over the Securities Company; b) have Significant Influence over the Securities Company; or c) are key management personnel of the Securities Company or the parent entity of the Securities Company, and employees of the Securities Company.
An entity is related to the Securities Company if it meets one of the following:
a) the entity and the Securities Company are members of the same business group (meaning the parent entity, subsidiary entity, and subsequent subsidiary entities are related to each other); b) one entity is an associate or joint venture of the Securities Company; c) the entity and the Securities Company are joint ventures of the same third Party; d) one entity is a joint venture of a third entity and the Securities Company is an associate of the third entity, or vice versa; e) the entity is a post-employment benefit program for work benefits from the Securities Company or an entity related to the Securities Company; f) an entity controlled or jointly controlled by the person identified in number 1); g) the person identified in number 1) letter a) has Significant Influence over the entity or key management personnel of the entity (or the parent entity of the entity); and/or h) the entity, or members of the group of which the entity is part of the group, provide key management personnel services to the Securities Company or to the parent entity of the Securities Company.

b. Entities related to the government are entities controlled, jointly controlled, or significantly influenced by the government. Government in this case is the Minister of Finance or regional governments that are shareholders of the entity.

c. Parties that are not Related Parties are as follows:

two entities only because they have the same directors or key management personnel or because key management personnel of one entity have Significant Influence over another entity;
two joint ventures only because they jointly control the joint venture;
funders, trade unions, public service entities, as well as ministries and government agencies that do not control, jointly control, or have Significant Influence over the Securities Company, only because of the requirement (simply by virtue) in the implementation of normal affairs with the entity (although

Such parties may restrict the entity's freedom or participate in the decision-making process); or
4) customers, suppliers, franchise holders, distributors, or general agents with whom the entity conducts significant volume business transactions, solely due to the economic dependence resulting from the circumstances.

Restatement
In the event a Securities Company restates previously issued financial statements, the description "restated" and the reference number referring to the notes to the financial statements explaining such restatement must be presented in the period column where the financial statements are restated, respectively in the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows.
Impairment of Non-financial Assets
a. Securities Companies must perform an assessment at the end of each reporting period to determine the existence of indications or objective evidence of impairment for a Non-financial Asset. b. In the event there are indications or objective evidence of impairment for a Non-financial Asset as referred to in letter a, Securities Companies must estimate the recoverable amount of such Asset.
c. If the recoverable amount of the Asset is smaller than its carrying amount, the carrying amount of the Asset is reduced to the recoverable amount. The difference between the recoverable amount and the carrying amount is an impairment loss.
d. Securities Companies using the cost model for fixed assets, investment property, and intangible assets recognize impairment losses of Assets in profit or loss. e. Securities Companies using the revaluation model for fixed assets and intangible assets recognize impairment losses on revalued Assets in other comprehensive income by reducing the revaluation surplus for such Assets, provided that the impairment loss does not exceed the amount of the revaluation surplus for the same Asset. The excess impairment loss over the revaluation surplus is recognized in profit or loss.
Asset Revaluation
a. In the event a Securities Company uses the revaluation model for fixed assets or intangible assets, or the fair value model for investment property, the Securities Company must use an appraiser in determining its Fair Value. b. The appraiser used is an appraiser registered with the Financial Services Authority (OJK), unless otherwise stated by relevant regulations in the securities sector regarding Securities Companies.
Financial Instruments
a. Financial Assets

Investments in Sukuk
Investments in ijarah sukuk and mudharabah sukuk must be classified as measured at amortized cost, measured at fair value through profit or loss, and measured at fair value through other comprehensive income. Reclassification of investments in ijarah sukuk and mudharabah sukuk follows the provisions as regulated in the relevant Accounting Standards (SAK). a) Measured at amortized cost (1) Investments are classified as measured at amortized cost if the investment is held within a business model whose primary objective is to obtain contractual cash flows and there are contractual terms that determine the specific date of payment of principal and/or interest. (2) The cost of sukuk includes transaction costs. (3) The difference between the cost and the amortized nominal value is amortized on a straight-line basis over the term of the sukuk and recognized in profit or loss. (4) Impairment losses are recognized if the recoverable amount is smaller than the carrying amount and are presented as impairment losses in profit or loss. b) Measured at fair value through profit or loss (1) Fair Value is determined by referring to the following order:
(a) quoted prices (unadjusted) in active markets; or (b) inputs other than quoted prices included in letter (a) that are observable.
(2) The cost of sukuk does not include transaction costs.
(3) The difference between Fair Value and the carrying amount is recognized in profit or loss.
(4) Changes in Fair Value are recognized in profit or loss. c) Measured at fair value through other comprehensive income (1) Investments are classified as measured at fair value through other comprehensive income if the investment is held within a business model whose primary objective is to obtain contractual cash flows and sell sukuk, and there are contractual terms that determine the specific date of payment of principal and/or interest. (2) Fair Value is determined by referring to the following order:
(a) quoted prices (unadjusted) in active markets; or (b) inputs other than quoted prices included in letter (a) that are observable.
(3) The cost of sukuk includes transaction costs.
(4) The difference between the cost and the amortized nominal value is amortized on a straight-line basis over the term of the sukuk and recognized in profit or loss. (5) Gains or losses from changes in Fair Value are recognized in other comprehensive income after considering the balance of the difference between cost and nominal value that has not yet been amortized and the balance of accumulated gains or losses of Fair Value that have previously been recognized in other comprehensive income, except for impairment losses and gains or losses from exchange rate differences, until the sukuk investment is derecognized or reclassified. When the sukuk investment is derecognized, the accumulated gains or losses previously recognized in other comprehensive income are reclassified to profit or loss as a reclassification adjustment. (6) Impairment losses are recognized if the recoverable amount is smaller than the carrying amount and are presented as impairment losses in profit or loss after considering the balance in other comprehensive income.
Financial assets other than investments in sukuk
a) Securities Companies recognize Financial Assets in the statement of financial position when they become one of the parties to the contractual terms of such instrument. b) At initial recognition, Financial Assets are measured using Fair Value. c) In the event Financial Assets are not classified as measured at fair value through profit or loss, the Fair Value as referred to in letter b) plus transaction costs directly related to the acquisition or issuance of the Financial Asset. d) In the event the Fair Value of the Financial Asset at initial recognition differs from the transaction price, the Securities Company applies the provisions as required by the relevant Accounting Standards (SAK). e) Classification of Financial Assets In determining the classification of financial instruments, Securities Companies must perform testing based on the Accounting Standards (SAK). Financial assets other than investments in sukuk must be classified into one of the following categories:
(1) Financial assets measured at amortized cost, if both of the following conditions are met:
(a) The financial asset is managed within a business model whose objective is to hold financial assets in order to obtain contractual cash flows; and (b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding; (2) Financial assets measured at fair value through other comprehensive income, if both of the following conditions are met:
(a) The financial asset is managed within a business model whose objective is achieved by both obtaining contractual cash flows and selling financial assets; and (b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding; or (3) Financial assets measured at fair value through profit or loss, namely:
(a) Financial assets are measured at fair value through profit or loss, except those measured at amortized cost or fair value through other comprehensive income; (b) at initial recognition, the entity may make an irrevocable election for investments in certain equity instruments that are generally measured at fair value through profit or loss so that changes in their Fair Value are presented in other comprehensive income; and (c) regardless of the provisions in numbers (1), (2), letter (a) and letter (b) above, at initial recognition, the entity may make an irrevocable designation to measure Financial Assets at fair value through profit or loss, if such designation eliminates or significantly reduces measurement or recognition inconsistency ("accounting mismatch") that may arise from the measurement of Assets or Liabilities or recognition of gains and losses over Assets or Liabilities on different bases.

f) Reclassification of Financial Assets
(1) If the entity changes its business model for managing financial assets, the entity reclassifies all affected financial assets.
(2) If the entity reclassifies financial assets, the entity applies reclassification prospectively from the reclassification date. The entity does not restate gains, losses (including impairment gains or losses), or interest recognized previously. (3) If the entity reclassifies financial assets out of the amortized cost measurement category into the fair value through profit or loss measurement category, its Fair Value is measured on the reclassification date. Gains or losses arising from the difference between the previous amortized cost and the Fair Value of the financial asset are recognized in profit or loss. (4) If the entity reclassifies financial assets out of the fair value through profit or loss measurement category into the amortized cost measurement category, the Fair Value on the reclassification date becomes the new gross carrying amount. (5) If the entity reclassifies financial assets out of the amortized cost measurement category into the fair value through other comprehensive income measurement category, its Fair Value is measured on the reclassification date. Gains or losses arising from the difference between the previous amortized cost and the Fair Value of the financial asset are recognized in other comprehensive income. The effective interest rate and expected credit loss measurement are not adjusted as a result of reclassification. (6) If the entity reclassifies financial assets out of the fair value through other comprehensive income measurement category into the amortized cost measurement category, the financial assets are reclassified at their Fair Value on the reclassification date. Cumulative gains or losses previously recognized in other comprehensive income are removed from equity and adjusted against the Fair Value of the financial asset on the reclassification date. The impact on the reclassification date, financial assets are measured as if the financial assets had always been measured at amortized cost. This adjustment affects other comprehensive income but does not affect profit or loss, and therefore is not a reclassification adjustment. The effective interest rate and expected credit loss measurement are not adjusted as a result of reclassification. (7) If the entity reclassifies financial assets out of the fair value through profit or loss measurement category into the fair value through other comprehensive income measurement category, financial assets continue to be measured at their Fair Value. (8) If the entity reclassifies financial assets out of the fair value through other comprehensive income measurement category into the fair value through profit or loss measurement category, financial assets continue to be measured at their Fair Value. Cumulative gains or losses previously recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment on the reclassification date.
3) Securities Companies must record every transaction of purchase and sale of Financial Assets regularly for each category of Financial Assets on the transaction date (transaction date) starting from the binding date.
4) Securities Companies must pay attention to applicable regulations governing provisions related to the timing of a transaction commitment. The timing of such commitment must be tested for compliance with the provisions of the transaction date (transaction date) as referred to in the relevant Accounting Standards (SAK).
5) Derecognition of Financial Assets
a) Securities Companies derecognize Financial Assets only if:
(1) the contractual rights to cash flows arising from such Financial Asset have expired; or (2) the Securities Company transfers the Financial Asset and such transfer meets the derecognition criteria according to the relevant Accounting Standards (SAK). b) In transactions that contain the characteristics of sale and repurchase transactions, loan agreements, guarantees, and ownership of shares used as the underlying in stock option contracts, Securities Companies must perform testing on the derecognition of Financial Assets according to the relevant Accounting Standards (SAK) to determine the treatment of Financial Assets being transacted. c) Securities Companies directly reduce the gross carrying amount of Financial Assets when the entity has no reasonable expectation of recovering the Financial Asset in whole or in part. b. Financial Liabilities

Sukuk
Sukuk issued generally use ijarah and mudharabah contracts. a) Ijarah Sukuk Ijarah Sukuk is presented as Liabilities net of unamortized premium or discount and transaction costs. b) Mudharabah Sukuk (1) Mudharabah Sukuk is presented as temporary partnership funds at nominal value. Transaction costs are recognized separately and presented as deferred expenses. (2) In the event a Securities Company does not present temporary partnership funds separately from Liabilities and equity, mudharabah sukuk is presented in Liabilities separately from other Liabilities in the last order. (3) Profit shares that become the rights of mudharabah sukuk investors are recognized as a reduction of income, not as an expense.
Financial Liabilities other than Sukuk
a) Securities Companies recognize Financial Liabilities in the statement of financial position when they become one of the parties to the contractual terms of such instrument. b) At initial recognition, Financial Liabilities are measured using Fair Value. c) In the event Financial Liabilities are not classified as measured at fair value through profit or loss, the Fair Value as referred to in letter b) minus transaction costs directly related to the acquisition or issuance of the Financial Liability. d) In the event the Fair Value of the Financial Liability at initial recognition differs from the transaction price, the Securities Company applies the provisions as required by the relevant Accounting Standards (SAK). e) Classification of Financial Liabilities, namely:
(1) Financial liabilities measured at amortized cost; and (2) Financial liabilities other than those measured at amortized cost, namely:
(a) Financial liabilities measured at fair value through profit or loss, including derivatives; (b) Financial liabilities arising when the transfer of financial assets does not meet the derecognition criteria or when the continuing involvement approach is applied, namely:
i. for financial liabilities arising when the transfer of financial assets does not meet the derecognition criteria, Liabilities are measured based on the consideration received; and
ii. for financial liabilities arising when the continuing involvement approach is applied, Liabilities are measured in a way that will make the net carrying amount of the transferred Asset and related Liabilities:
i) amortized cost of rights and obligations still retained by the entity, if the transferred Asset is measured at amortized cost; or ii) equivalent to the Fair Value of rights and obligations still retained by the entity if measured separately, if the transferred Asset is measured at Fair Value; (c) financial guarantee contracts and commitments to provide loans with interest rates below market rates, after initial recognition measured at the higher amount between:
i. impairment loss provisions; and
ii. initial measurement amount minus the cumulative income recognized according to SAK;
(d) contingent consideration recognized by the acquirer in a business combination is measured at Fair Value and the difference is recognized in profit or loss; and (e) at initial recognition, the entity may make an irrevocable designation to measure Financial Liabilities at fair value through profit or loss, if permitted by SAK or if the designation will result in more relevant information, because:
i. it eliminates or significantly reduces measurement or recognition inconsistency ("accounting mismatch") that may arise from the measurement of Assets or Liabilities or recognition of gains and losses over Assets or Liabilities on different bases; or
ii. a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated based on Fair Value, in accordance with documented risk management or investment strategy, information based on Fair Value regarding such group is provided internally to the entity's key management personnel.
f) Reclassification of Financial Liabilities
Entities are not permitted to reclassify Financial Liabilities. g) Derecognition of Financial Liabilities Financial Liabilities are derecognized when the obligations set forth in the contract are released, cancelled, or expired.
c. Offset
Securities Companies offset Financial Assets and Financial Liabilities and present their net amount in the statement of financial position only if:
a) the Securities Company has a legally enforceable right to offset the recognized amounts; and b) the Securities Company intends to settle using a net basis or to realize the Asset and settle the Liability simultaneously.
Securities Companies disclose information to enable users of their financial statements to evaluate the impact or potential impact of offsetting rights related to the recognized Financial Assets and Financial Liabilities of the Securities Company.

d. Impairment

Securities Companies recognize impairment provisions for expected credit losses on financial assets other than investments in sukuk measured at amortized cost and financial assets other than equity instruments measured at fair value through other comprehensive income as follows:
a) if at the reporting date, the credit risk of the financial instrument has not increased significantly since initial recognition, Securities Companies measure the impairment provision for such financial instruments at 12 (twelve) months of expected credit losses; b) if at the reporting date, the credit risk of the financial instrument has increased significantly since initial recognition, Securities Companies measure the impairment provision for such financial instruments at lifetime expected credit losses; c) for financial assets purchased or originating from deteriorated financial assets, at the reporting date, Securities Companies only recognize cumulative changes in lifetime expected credit losses since initial recognition of the financial asset as impairment provisions; and
For Financial Assets, credit losses are the present value of the difference between:
a) contractual cash flows due to the entity according to the contract; and b) cash flows expected to be received by the entity.
For undrawn loan commitments, credit losses are the present value of the difference between:
a) contractual cash flows due to the entity if the owner of the loan commitment draws the loan; and b) cash flows expected to be received by the entity if the loan is drawn.
Securities Companies recognize the amount of expected credit losses (or recovery of credit losses) in profit or loss, as impairment gains or losses.
e. Dividends
Securities Companies recognize dividends in profit or loss when:
the entity's right to receive dividend payments has been established;
it is probable that economic benefits associated with dividends will flow to the entity; and
the amount of dividends can be measured reliably.

Fair Value
The Fair Value hierarchy for Assets and Liabilities other than investments in sukuk and issued sukuk is as follows:
a. level 1 inputs are quoted prices (unadjusted) in active markets for identical Assets or Liabilities that can be accessed by the entity on the measurement date; b. level 2 inputs are inputs other than quoted prices included in level 1 that are observable for Assets or Liabilities, either directly or indirectly; and
c. level 3 inputs are unobservable inputs for Assets or Liabilities.

B. PRESENTATION OF FINANCIAL STATEMENTS

Identification of Financial Statements
Each component of the financial statements and notes to the financial statements must be clearly identified and, in addition, Securities Companies present the identity information of the Securities Company's financial statements and repeat it if necessary so that it can be understood. Such information is as regulated in the relevant Accounting Standards (SAK) in effect.
Statement of Financial Position
a. Definition

The statement of financial position is a report that describes the financial position, showing the Assets, Liabilities, and equity of the Securities Company on a specific date.
The Statement of Financial Position must be presented using the unclassified method so that Assets and Liabilities are not grouped into current and non-current elements. Asset accounts are presented based on liquidity order, while Liability accounts are reported based on maturity order.
b. Main Components
Assets
a) cash and cash equivalents; b) cash and cash equivalents with restricted usage; c) time deposits; d) securities portfolio; e) transferred securities portfolio; f) trade receivables (1) Third Parties; and (2) Related Parties; g) receivables from securities intermediary transactions (1) Third Parties; and (2) Related Parties. h) receivables from securities underwriting transactions (1) Third Parties; and (2) Related Parties; i) receivables from investment management transactions (1) Third Parties; and (2) Related Parties; j) repo transaction receivables; k) other receivables; l) prepaid expenses; m) prepaid taxes; n) investments in associate entities; o) intangible assets; p) right-of-use assets; q) fixed assets; r) deferred tax assets; and s) other assets.
Liabilities
a) trade payables
(1) Third Parties; and
(2) Related Parties; b) payables from securities intermediary transactions (1) Third Parties; and (2) Related Parties; c) payables from securities underwriting transactions (1) Third Parties; and (2) Related Parties; d) payables from investment management transactions (1) Third Parties; and (2) Related Parties; e) repo transaction payables; f) tax payables; g) accrued expenses; h) short-term payables; i) deferred tax liabilities; j) long-term payables; k) long-term debt securities; l) lease payables; m) employee benefit liabilities; n) subordinated debt; o) convertible bonds; and p) other payables.
Equity
a) Equity attributable to the owners of the parent entity, consisting of:

(1) Share capital;
(2) Additional paid-in capital;
(3) Transaction differences with non-controlling interests; (4) Treasury shares; (5) Retained earnings; and (6) Other equity components (other comprehensive income). b) Non-controlling interests.
c. Securities Companies may adjust the main components listed above according to the characteristics of the Securities Company, provided that such presentation is relevant for understanding the financial position of the Securities Company, and disclosing the reasons and considerations.
d. Explanation of Main Components

Assets
The classification and measurement of Assets meeting the criteria for Financial Assets refer to the provisions as referred to in Part A General Provisions number 20 letter a. a) Cash and Cash Equivalents (1) Cash is the cash balance (cash on hand) and demand deposits owned by the Securities Company that are ready and freely available to finance the activities of the Securities Company. (2) Cash Equivalents are investments that are highly liquid, short-term, and can be quickly converted into cash in known amounts without facing significant risk of changes in value. (3) Cash and Cash Equivalents that have designated uses or cannot be used freely are not classified as Cash and Cash Equivalents. (4) Items in Cash and Cash Equivalents include among others:

(a) Cash
This item is used to record a sum of cash that is always available in cash to finance the daily activities of the Securities Company.
(b) Bank Demand Deposits
This item is used to record demand deposit balances at Banks and settlement sub-account balances at Payment Banks in the name of the Securities Company.
(c) Time Deposits with a term of less than 3 months This item is used to record time deposits that will mature within 3 (three) months or less and are not pledged. (d) Money market instruments obtained and can be liquidated within a period of not more than 3 (three) months. b) Restricted Cash and Cash Equivalents (1) This item is used to record Cash and Cash Equivalents that cannot be used freely. (2) This item includes among others:
(a) funds whose use has been determined, such as funds from public offerings; (b) Cash and Cash Equivalents whose use is restricted based on applicable regulations, such as Cash and Cash Equivalents balances of subsidiary entities operating in a country that imposes foreign exchange controls or other legal restrictions so that the Cash and Cash Equivalents balance cannot be used by the Securities Company as the parent entity or other subsidiary entities; and/or

(c) time deposits with a term of less than 3 (three) months that are pledged. c) Time Deposits (1) This item is used to record funds placed in the form of:
(a) Time deposits that will mature in more than 3 (three) months.
(b) Time deposits with a term of more than 3 (three) months that are pledged.
(2) This account is presented separately between transactions with Third Parties and transactions with Related Parties. d) Securities Portfolio (1) This item is used to record the inventory of Securities owned by the Securities Company. (2) Items in Securities Portfolio include among others:
(a) Bank Indonesia Certificates (SBI) and Government Securities (SBN); (b) Equity-type Securities listed on the Stock Exchange; (c) Debt-type Securities and Sukuk listed on the Stock Exchange; (d) mutual fund participation units (UP); (e) Real Estate Investment Fund participation units (DIRE); (f) Asset-Backed Securities (EBA); (g) Multi-Asset Investment Fund participation units (DIMAS); (h) Infrastructure Investment Fund participation units (DINFRA); (i) option contracts; (j) futures contracts; (k) other Securities listed with the Financial Services Authority; and (l) Securities listed on foreign Stock Exchanges.

(3) This item also includes separated Securities portfolios which are portfolios transferred to other Parties and do not meet the derecognition criteria according to SAK, where such other Parties do not have the right to transfer the transferred Securities back. Separated Securities portfolios can include among others Securities lent, Securities repurchased, and/or Securities pledged. e) Transferred Securities Portfolio (1) Transferred Securities Portfolios are Securities transferred to other Parties and do not meet the derecognition criteria according to SAK where such other Parties have the right to transfer the transferred Securities back. (2) This item includes among others:
(a) Securities lent are Securities lent to borrowing Parties in securities lending transactions.
(b) Securities repurchased are Securities used as underlying assets in repo transactions.
(c) Securities pledged are Securities used as collateral for a loan/transaction.
(3) The transferred Securities are not recognized as derecognized because the Securities Company substantially still bears the risks and benefits of ownership of the transferred Securities portfolio, therefore the Securities Company continues to recognize the Transferred Securities Portfolio in its entirety and for:

(a) Securities lent, the Securities Company recognizes cash inflows from the amount received as Financial Assets.
(b) Securities repurchased and Securities pledged, the Securities Company recognizes cash inflows from the amount received as Financial Liabilities. f) Trade Receivables (1) This item is receivables from income arising in connection with the normal business activities of the Securities Company, whether from Third Parties or from Related Parties. (2) Items in Trade Receivables include among others:
(a) Commission Receivables
This item is used to record commission invoices to:
i. Clearing and Guarantee Institution (LKP), for services provided to LKP;
ii. account holder clients, for commission income invoices from regular transactions and other transactions; and
iii. other Securities Companies, for Securities transactions, for example commissions from securities lending transactions, transactions as sales agents, and transactions as syndicate members.
(b) Securities Issuance Underwriting Transaction Receivables This item is used to record invoices to other Parties for securities issuance underwriting transactions through public offerings and securities issuance underwriting transactions not through public offerings, for example, through public offerings, namely securities issuance service receivables. (c) Management Fee Receivables This item is used to record invoices for investment management services for individual and collective clients, for example, Mutual Fund UP, EBA, UP DIRE, UP DIMAS, UP DINFRA, or Individual Client Portfolio Management (PPNSI). (d) Subscription Fee and Redemption Fee Receivables This item is used to record invoices for sales and repurchase services of Mutual Fund UP, EBA, UP DIRE, UP DIMAS, UP DINFRA. g) Securities Broker-Dealer Transaction Receivables (1) This item is used to record invoices other than commission invoices arising from services from Securities Broker-Dealer transactions. (2) Items in these receivables relate to 2 transactions, namely securities intermediation (broker) and securities trading (dealer). (3) Items in these receivables include among others:
(a) Clearing and Guarantee Institution (LKP) Receivables
i. This item is used to record invoices to LKP in connection with Securities transactions and deposits submitted by the Securities Company in the context of Securities transactions.
ii. Items in LKP Receivables include among others:
i) LKP Guarantee Funds
This item is used to record funds submitted by the Securities Company, which is a Clearing Member (AK), to LKP as collateral in the context of Securities transactions guaranteed by LKP. ii) Stock Exchange Transaction Receivables This item is used to record invoices to LKP for sales transactions conducted by the Securities Company. The amount presented is in accordance with the netting value presented in the Clearing Results List (DHK). (b) Client Receivables
i. This item is used to record invoices to Account Holder Clients (NPR) and Institutional Clients (NK) in connection with Securities transactions.
ii. This item is presented separately between receivables from Third Parties and receivables from Related Parties.
iii. Items in Client Receivables include among others:
i) Account Holder Clients
This item is used to record invoices to NPR, including other Securities Companies that open accounts at the Securities Company, originating from:
(i) Regular Transactions showing receivables to clients for Securities transactions not yet settled by NPR, consisting of transactions that have matured but are not yet settled and transactions that have not yet matured. (ii) Margin Transactions showing the amount of funds that must be paid by clients to the Securities Company for margin transaction financing by the Securities Company for clients. (iii) Other Transactions showing balances other than Regular Transactions and Margin transactions, including among others Tender Offer Transactions and Alternate Cash Settlement (ACS). ii) Institutional Clients This item is used to record invoices from the Securities Company to institutional clients. (c) Other Securities Company Receivables (1) This item is invoices from the Securities Company to other Securities Companies in the context of Securities Broker-Dealer activities. (2) This item is presented separately between receivables from Third Parties and receivables from Related Parties.

(3) Items in Other Securities Company Receivables include among others:
i. Guarantee Funds for Securities Lending
This item is used to record the value of collateral placed at other Securities Companies for securities lending.
ii. Guarantee Funds at Clearing Members (AK)
This item is used to record funds pledged by non-Clearing Member Securities Companies to Clearing Member Securities Companies.
iii. Securities Sales Transactions
This item is used to record invoices from the Securities Company to other Securities Companies for Securities sales transactions not guaranteed by LKP and not yet settled. h) Securities Issuance Underwriting Transaction Receivables (1) This item is used to record invoices other than commission invoices arising from services from Securities Issuance Underwriting transactions, both through public offerings and not through public offerings. (2) This item is presented separately between receivables from Third Parties and receivables from Related Parties. i) Investment Management Transaction Receivables (1) This item is used to record invoices other than income arising from services from investment management transactions as long as they meet the provisions of laws and regulations in the capital market sector.

(2) This item is presented separately between receivables from Third Parties and receivables from Related Parties. j) Repo Transaction Receivables This item is invoices related to the promise of transfer back of Repo Securities. k) Other Receivables (1) This item is used to record receivables that cannot be grouped into the items in letters f), g), h), i), and j). (2) This item includes among others:
(a) dividend and interest invoices to other Parties; (b) penalty invoices to other Parties; and/or (c) invoices related to Securities transactions for the interest of the securities issuer and investment manager itself (portfolio). l) Prepaid Expenses (1) This item is used to record expenses that have been paid but their charging will only be done in the upcoming period. (2) This item includes among others:
(a) prepaid insurance premiums;
(b) prepaid interest;
(c) prepaid rent;
(d) deferred underwriting expenses; or
(e) other deferred expenses. m) Prepaid Taxes
(1) This item includes among others:
(a) tax overpayments, for example Value Added Tax (PPN), which will be invoiced again or compensated against future tax liabilities; and (b) Current tax assets, namely the excess difference between the amount of taxes paid for the current and previous periods compared to the amount of taxes due for that period. (2) Current tax assets for the current and previous periods are measured at the amount expected to be refunded by the tax authority, calculated using the tax rates and tax regulations that have been enacted or substantially enacted at the end of the reporting period. (3) The Securities Company offsets Current Tax Assets and Current Tax Liabilities and presents the net value in the financial position statement only if the Securities Company:
(a) has a legally enforceable right to offset the recognized amounts; and (b) has the intention to settle using the net basis or to realize the Asset and settle the Liability simultaneously. Offsetting is not performed if the taxes are for different legal entities in a Consolidated Financial Report. n) Investments in Associate Entities (1) This item is the Securities Company's investment in associate entities, including non-corporate entities such as partnerships, which are significantly influenced by the Securities Company.

(2) Securities Companies that have Significant Influence over the investment recipient (investee) record their investment in the investment recipient (investee) as an investment in associate entities using the equity method or may choose to measure at Fair Value through profit or loss (fair value through profit or loss), as required by the relevant SAK. (3) Significant Influence is considered to exist when the Securities Company has directly or indirectly 20% (twenty percent) or more of the voting rights of the investment recipient (investee), unless it can be clearly proven that the Securities Company does not have Significant Influence. (4) Significant Influence also exists when the Securities Company has directly or indirectly less than 20% (twenty percent) of the voting rights of the investment recipient (investee), but it can be clearly proven that the Securities Company has Significant Influence. o) Intangible Assets (1) Intangible Assets can be recognized only if:
(a) it is probable that future economic benefits from the Asset will be obtained; and (b) the acquisition cost of the Asset can be measured reliably.
(2) Intangible Assets are initially recognized at acquisition cost or the amount attributed to the Asset at initial recognition, if applicable.

(3) After initial recognition, the recording of Intangible Assets can be divided into 2 (two) models, namely:
(a) Cost Model
In this model, Intangible Assets are recorded at acquisition cost less accumulated amortization and accumulated impairment losses.
(b) Revaluation Model
In this model, Intangible Assets are recorded at the revaluation amount, namely the Fair Value at the revaluation date less accumulated amortization and accumulated impairment losses occurring after the revaluation date. (4) Intangible Assets with limited useful lives are amortized systematically over their useful lives. (5) Intangible Assets with indefinite useful lives do not need to be amortized, but must undergo annual comparison between the carrying amount and the recoverable amount. (6) Items in Intangible Assets include one of which is Membership Investments held by the Securities Company representing ownership interests and giving the Securities Company the right to conduct business related to activities in the capital market, including among others investments in Stock Exchanges. p) Right-of-Use Assets (1) This item is an Asset (Underlying Asset) obtained through lease transactions as a Right-of-Use Asset.

(2) The Securities Company presents Right-of-Use Assets separately from other Assets, except:
(a) The Securities Company has Underlying Assets similar to Right-of-Use Assets; and (b) Right-of-Use Assets meeting the definition of investment property.
(3) This item is initially measured at acquisition cost.
(4) After initial recognition, the Securities Company as a lessee must use the cost model, except:
(a) The Securities Company uses the Fair Value model for investment property other than Right-of-Use Assets; or (b) if the Right-of-Use Asset relates to a class of Fixed Assets where the Securities Company applies the revaluation model. (5) In the cost model, the Securities Company measures Right-of-Use Assets at acquisition cost less accumulated depreciation and accumulated impairment losses, and adjusts for lease liability remeasurement. (6) If the lease transfers ownership of the Underlying Asset to the Securities Company at the end of the lease term or if the acquisition cost of the Right-of-Use Asset reflects that the Securities Company will exercise the purchase option, then the Securities Company depreciates the Right-of-Use Asset from the initial recognition date until the end of the useful life of the Underlying Asset. If not, then the Securities Company depreciates the Right-of-Use Asset from the initial recognition date until the earlier date between the end of the useful life of the Underlying Asset or the end of the lease term. q) Fixed Assets (1) The Securities Company must present the value of Assets included in the Fixed Assets group as directly owned Fixed Assets (purchases and self-construction) and leased assets. (2) Fixed Assets are presented after deducting accumulated depreciation. (3) Directly Owned Fixed Assets This item is Fixed Assets owned by the Securities Company consisting of:
(a) Ready-to-use Fixed Assets
i. Ready-to-use Fixed Assets must initially be measured at acquisition cost.
ii. After initial recognition, the Securities Company must choose the cost model or the revaluation model as its accounting policy and apply that policy to all Fixed Assets in the same group.
i) Cost Model
In this model, Fixed Assets are recorded at acquisition cost less accumulated depreciation and accumulated impairment losses. ii) Revaluation Model In this model, Fixed Assets are recorded at the revaluation amount, namely the Fair Value at the revaluation date less accumulated depreciation and accumulated impairment losses occurring after the revaluation date. (b) Construction Fixed Assets This item is Assets built by the company itself and not intended as Investment Property when ready for use. This Asset is stated at the costs incurred. (4) Leased Fixed Assets This item is explained in letter p). r) Deferred Tax Assets (1) This item is the amount of income tax that can be recovered in future periods as a result of:
(a) deductible temporary differences;
(b) unutilized accumulated tax losses; and
(c) unutilized accumulated tax credits, in the event that tax regulations allow.
(2) Deferred tax assets are measured using the tax rate expected to apply when the Asset is recovered, based on tax rates and tax regulations that have been enacted or substantially enacted at the end of the reporting period. (3) The Securities Company offsets Deferred Tax Assets and Deferred Tax Liabilities and presents the net value in the financial position statement only if:
(a) The Securities Company has a legally enforceable right to offset Current Tax Assets against Current Tax Liabilities; and (b) Deferred Tax Assets and Deferred Tax Liabilities relate to income taxes levied by the same tax authority over the same taxable entity that has the intention to recover Assets and Liabilities current tax using the net basis, or to realize Assets and settle Liabilities simultaneously, in each future period where significant amounts of Deferred Tax Assets or Liabilities are expected to be settled or recovered. (4) The Securities Company must review the recorded amount of Deferred Tax Assets at the end of the reporting period. (5) The Securities Company reduces the carrying amount of Deferred Tax Assets if it is probable that taxable profit will no longer be available in sufficient amounts to compensate for part or all of such Deferred Tax Assets. Each such reduction is reversed for Deferred Tax Assets until probable taxable profit is available in sufficient amounts. s) Other Assets (1) This item is used to record Assets that cannot be classified into any of the aforementioned Asset groups. (2) This item includes among others:
(a) Fixed Assets that are no longer used; and/or (b) Assets from business segments that have been decided by management to be discontinued or held for sale.
2) Liabilities
The classification and measurement of Liabilities meeting the criteria for Financial Liabilities refer to the provisions as referred to in Part A General Provisions number 20 letter b. a) Trade Payables (1) This item is the obligation to pay for goods or services that have been received or invoiced, or formally agreed upon with suppliers, service providers, or investment product managers. (2) Items in Trade Payables include among others:
(a) Commission Payables
This item is used to record obligations to:
i. Clearing and Guarantee Institution for services provided by LKP;
ii. Other Securities Companies in the context of Securities Broker-Dealer transactions and transactions related to syndicate members; and
iii. Sales Agents for Mutual Fund UP, EBA, UP DIRE, UP DIMAS, UP DINFRA in the context of investment management transactions;
(b) Securities Issuance Underwriting Transaction Payables This item is used to record obligations to other Parties for securities issuance underwriting transactions through public offerings and securities issuance underwriting transactions not through public offerings, for example, through public offerings, namely securities issuance service payables. (c) Transaction Cost Payables This item is used to record payables related to transaction costs borne by the Securities Company, including among others transaction cost payables to Stock Exchanges, Clearing and Guarantee Institutions, and Custody and Settlement Institutions.

(d) Investment Product Management Cost Payables This item is used to record payables for investment product management costs borne by Investment Managers, including among others establishment cost payables, management cost payables, and liquidation cost payables for investment products. b) Securities Broker-Dealer Transaction Payables (1) This item is used to record obligations other than trade payables arising from Securities Broker-Dealer transactions. (2) Items in these payables relate to 2 transactions, namely Securities Intermediation (broker) and Securities Trading (dealer). (3) Items in these payables include among others:
(a) Payables to Clearing and Guarantee Institution (LKP)
i. This item is used to record obligations to LKP that have not yet matured in connection with stock exchange transactions whose settlement is guaranteed by LKP and securities lending/borrowing through LKP.
ii. Items in Payables to LKP include among others Stock Exchange Transaction Payables. This item is used to record obligations to LKP for purchase transactions conducted by the Securities Company. The amount presented is in accordance with the netting value presented in the Clearing Results List (DHK).
(b) Client Payables
i. This item is used to record obligations to NPR and NK in connection with Securities transactions.

ii. This item is presented separately between liabilities to third parties and liabilities to related parties for each type of customer, namely NPR and NK.

iii. Items in Customer Liabilities include:

i) Customer Account Owners
This item is used to record:
(i) Liabilities to LKP that are not yet due in connection with transactions conducted by NPR, including other Securities Companies that open accounts at the Securities Company. (ii) Liabilities arising from other transactions, for example, tender offer transactions.

ii) Institutional Customers
This item is used to record obligations to LKP that are not yet due in connection with the Securities Company's activities towards NK.

i. This item is used to record the obligations of the Securities Company to other Securities Companies in the context of Broker-Dealer activities.

ii. This item is presented separately between liabilities to third parties and liabilities to related parties.

iii. Items in Liabilities to Other Securities Companies include:

i) Securities Borrowing Guarantee Funds
This item is used to record obligations for guarantee funds received from other Securities Companies related to Securities Borrowing and Lending transactions.

ii) Guarantee Funds from Non-AK Securities Companies This item is used to record obligations to non-AK Securities Companies for funds handed over as guarantees to AK Securities Companies.

iii) Securities Purchase Transactions
This item is used to record the obligations of the Securities Company to other Securities Companies for securities purchase transactions that have not yet been settled.

(d) Short Position Securities Liabilities
This item displays the Fair Value of Securities in the Securities Company's short positions. This account arises because the Securities Company has sold more Securities than it owns.

c) Underwriting Issuance Transaction Liabilities

(1) This item is used to record obligations other than trade payables arising from Underwriting Issuance Transactions, whether through public offerings or not through public offerings.

(2) This item is presented separately between liabilities to third parties and liabilities to related parties.

d) Investment Management Transaction Liabilities

(1) This item represents the obligation to pay for goods or services that have been received or supplied and have been invoiced or formally agreed upon with suppliers or service providers, which will be re-invoiced by the Investment Manager to the investment product, provided it meets the provisions of legislation in the capital market sector.

(2) This item is presented separately between liabilities to third parties and liabilities to related parties.

e) Repo Transaction Liabilities
This item represents Liabilities for the promise to transfer back Repo Securities. The Liabilities referred to are obligations related to the underlying transaction.

f) Tax Liabilities

(1) This item comprises:
(a) Tax liabilities of the Securities Company and other taxes that have not been paid; and (b) Current tax liabilities, which are the amounts of current and prior period income taxes that have not been paid.

(2) Current tax liabilities for the current and prior periods are measured at the amount expected to be paid to the tax authority, calculated using the tax rates and tax regulations that have been enacted or substantially enacted as of the end of the reporting period.

(3) The Securities Company offsets current tax assets and current tax liabilities and presents the net amount in the statement of financial position only if the entity:
(a) has a legally enforceable right to set off the recognized amounts; and (b) intends to settle on a net basis or to realize the Asset and settle the Liability simultaneously. Offsetting is not performed if the taxes are for different legal entities within a Consolidated Financial Report.

g) Accrued Expenses
This item represents Liabilities for goods or services that have been received or supplied, but have not been paid or invoiced, or formally agreed upon with the supplier.

h) Short-Term Liabilities

(1) This item is used to record liabilities that cannot be classified into items in letters a) through g) and will mature within a period of 1 (one) year or less.

(2) Items in Short-Term Liabilities include:

(a) Short-Term Debt Instruments;

i. This item is used to record debt instruments issued by the Securities Company with a maturity of 1 (one) year or less.

ii. This item is presented with details including:

i) Medium Term Notes (MTN); and

ii) Commercial Paper (CP).

(b) The portion of long-term liabilities that will mature soon;

i. This item represents the portion of long-term liabilities that mature within 12 (twelve) months or less from the date of the statement of financial position.

ii. This item is presented with details including:

i) long-term bank and financial institution loans;

ii) finance lease liabilities;

iii) bond liabilities;

iv) Sukuk; and

v) Medium Term Notes (MTN).

(c) Other short-term liabilities;
This item is used to record short-term liabilities not included in letters (a) and (b), including liabilities related to margin transactions with third parties and Liabilities arising from the sale of Repo Securities by the Buyer (in repo transactions) to other parties.

i) Deferred Tax Liabilities

(1) This item represents the amount of income tax payable in future periods as a result of temporary taxable differences.

(2) Deferred tax liabilities are measured using the tax rate expected to apply when the Liability is settled, based on tax rates and tax regulations that have been enacted or substantially enacted as of the end of the reporting period.

(3) The Securities Company offsets deferred tax assets and deferred tax liabilities and presents the net amount in the statement of financial position only if:
(a) the Securities Company has a legally enforceable right to set off current tax assets against current tax liabilities; and (b) deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the same taxable entity that has the intention to recover the current tax assets and settle the current tax liabilities on a net basis, or to realize the Asset and settle the Liability simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered.

j) Long-Term Liabilities

(1) This item is used to record obligations to specific parties that must be settled in a period longer than one accounting period.

(2) This item includes, among others, bank and financial institution loans maturing in a period longer than 12 months.

k) Long-Term Debt Instruments

(1) This item is used to record debt instruments that will mature in a period longer than 12 months.

(2) Items in Long-Term Debt Instruments are presented with details including:

(a) Bond Liabilities;

i. Represents the obligation of the Securities Company to bondholders in connection with the issuance of the Securities Company's bonds.

ii. Bond issuance costs, except for convertible bonds, are transaction costs that can be directly attributed to the issuance and must be deducted from the issuance proceeds in determining the net issuance proceeds of the bond.

iii. The difference between the net issuance proceeds and the nominal value is a discount or premium that must be amortized using the effective interest rate method over the life of the bond.

(b) Sukuk; and

l) Lease Liabilities

(1) This item represents the Securities Company's liability to the lessor in connection with the lease of the use of the underlying Asset by the Securities Company.

(2) At initial recognition, lease liabilities are measured at the present value of lease payments unpaid at that date.

(3) After initial measurement, the Securities Company measures lease liabilities by:
(a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the carrying amount to reflect lease payments made; and (c) remeasuring the carrying amount to reflect reassessment or modification of the lease, or to reflect fixed lease payments in substance revised.

m) Employee Benefits Liabilities
This item records all forms of employee benefits payable for services rendered by employees or for termination of employment contracts.

n) Subordinated Liabilities
This item is used to record liabilities obtained based on a subordination agreement, where the position of the subordinated lender's rights is lower than the position of other lenders' rights.

o) Convertible Bonds

(1) This item represents bond liabilities that can be converted into shares of the Securities Company in the future.

(2) At initial recognition, convertible bonds must be separated into Liability and equity components. The equity component of a convertible bond is the residual amount of the Fair Value of the entire convertible bond minus the value of the Liability component determined separately.

(3) The Fair Value of the Liability component at initial recognition is the present value of future contractual cash flows, discounted at the market interest rate used for instruments with equivalent credit quality, with substantially similar cash flows, and the same maturity, but without the conversion option.

(4) This account is presented at Fair Value after considering convertible bond issuance costs.

(5) Convertible bond issuance costs are transaction costs that can be directly attributed to the acquisition or issuance and must be allocated proportionally to the Liability and equity components.

(6) The difference between the net Liability component and the nominal value of the convertible bond is a discount or premium that must be amortized using the effective interest rate method over the life of the convertible bond.

p) Other Liabilities
This item is used to record, among others:
(1) tender offer liabilities;
(2) uncommitted capital deposits; and
(3) other obligations that cannot be classified into any of the above Liability accounts.

Equity

a) Definition
This item represents the owner's interest in the Securities Company, which is the difference between Assets and Liabilities that exist.

b) Equity items in the statement of financial position must separate:

(1) Equity attributable to the owners of the parent entity, which consists of, among others:

(a) Share Capital
This item is used to record share capital for each type of share presented at nominal value.

i. Authorized Capital
This item presents the number of shares, nominal value of shares, or the value of shares that do not have a nominal value, for each type of share, in accordance with the Articles of Association of the Securities Company.

ii. Paid-Up Share Capital
This item presents the number of shares, for each type of share, that have been fully placed and paid up.

(b) Additional Paid-In Capital
This item presents additional paid-in capital presented net by summing the following items:

i. Share Premium

i) In the event that the Securities Company is an Issuer or a Public Company, the Securities Company must present Share Premium.

ii) This item represents the excess of shareholder deposits above the nominal value, after deducting equity security issuance costs.

iii) Equity security issuance costs are costs related to the issuance of the Securities Company's equity securities, as regulated by OJK.

iv) Costs that are not included in equity security issuance costs include costs related to the listing of shares on the Stock Exchange for shares that are already circulating, costs related to stock dividends and stock splits, and other costs that cannot be directly attributed to the issuance of equity securities.

ii. Difference in Capital from Treasury Stock Transactions
This item represents the difference between the reacquisition price and the resale price of treasury stock.

iii. Exchange Rate Differences on Paid-In Capital
This item represents foreign currency exchange rate differences arising in connection with capital transactions.

iv. Difference in Transaction Value with Controlling Entities
This item represents the difference between the amount of consideration transferred or received and the carrying amount of each business combination or disposal transaction between controlling entities.

v. Donated Capital
This item represents capital originating from donations obtained by the Securities Company from the government and/or from shareholders and/or other parties.

vi. Other Additional Paid-In Capital
This item is used to record, among others:

i) excess capital deposits above Authorized Capital or Placed Capital;

ii) the value of detachable warrants that have not been and are not exercised;

iii) share-based payment transactions:

(i) This item arises from share-based payment transactions settled with equity instruments.

(ii) Securities Companies that settle share-based payments with equity instruments must measure the goods or services received and the increase in equity directly by referring to the Fair Value of the goods or services received, or indirectly by referring to the equity instruments given if the Fair Value of the goods or services received cannot be estimated reliably; and

(iii) Securities Companies that settle share-based payments with a Cash option (or other Assets) or with the issuance of equity instruments must recognize the transaction or component of the transaction as a share-based payment transaction settled with equity instruments if no Liability arises; and

iv) The equity component of compound financial instruments, for example, convertible bonds.

i. This item represents differences arising from transactions with non-controlling parties that result in changes in ownership, whether causing an increase or decrease in the ownership percentage in the subsidiary without resulting in the loss of Control.

ii. Differences arising from transactions with non-controlling parties are the difference between the adjustment amounts for non-controlling interests and the Fair Value of consideration given or received.

(d) Treasury Stock
This item represents shares reacquired and held by the Securities Company. Treasury stock is presented at acquisition cost and as a deduction from equity.

(e) Retained Earnings

i. This item represents the accumulation of periodic business results after considering distributions to owners (dividend distribution) and corrections of prior period profits and losses.

ii. In the event that the Securities Company, which is an Issuer or a Public Company, has previously conducted a quasi-reorganization:

i) The amount of negative retained earnings that was eliminated must be presented for 3 (three) consecutive years from the year the quasi-reorganization was conducted.

ii) The date of the quasi-reorganization must be stated in the retained earnings item for a period of ten years ahead from the year the quasi-reorganization began.

iii) The provision of tantiems and bonuses is not a reduction of retained earnings.

(f) Other Equity Components (Other Comprehensive Income) This item consists of:

i. that will not be reclassified further to profit or loss, including:

i) revaluation surplus balance; and

ii) gains and losses from investments in equity instruments designated at Fair Value through other comprehensive income in accordance with SAK.

ii. that will be reclassified further to profit or loss, including:

i) translation differences of financial statements in foreign currency;

ii) gains and losses in financial assets measured at Fair Value through other comprehensive income in accordance with SAK; and

iii) the effective portion of gains and losses of hedging financial instruments in the context of cash flow hedges.

(2) Non-Controlling Interests
This item represents the portion of the subsidiary's equity that cannot be directly or indirectly attributed to the parent entity, presented as part of equity separate from the equity of the owners of the parent entity.

Statement of Comprehensive Income and Profit or Loss

a. Definition
The Statement of Comprehensive Income and Profit or Loss (comprehensive income statement) is a statement that presents all income and expense items recognized in a period. The statement of comprehensive income and profit or loss consists of two components, namely:

profit or loss; and
other comprehensive income.

b. Securities Companies must present all income and expenses recognized in one period in a single statement of comprehensive income and profit or loss.

c. The main components of the comprehensive profit or loss statement are presented using the expense function method. Securities Companies must disclose additional information about the nature of expenses.

d. Main Components

revenue;
expenses;
gross profit;
other income;
other expenses;
finance costs;
profit (loss) before tax;
tax expense (income);
profit (loss) for the current period;
other comprehensive income;

a) that will not be reclassified further to profit or loss; and

b) that will be reclassified further to profit or loss.

income tax related to other comprehensive income;
other comprehensive income for the current period after tax;
total comprehensive income for the current period;
profit (loss) for the period attributable to:

a) owners of the parent entity; and

b) non-controlling interests;

total comprehensive income for the period attributable to:

a) owners of the parent entity; and

b) non-controlling interests; and

basic and diluted earnings per share.

e. Securities Companies may adjust the above main components according to the characteristics of the Securities Company, provided that such presentation is relevant to understanding the financial performance of the Securities Company, and disclosing the reasons and considerations.

f. Explanation of Main Components

Revenue

a) Securities Company revenue is revenue sourced from business activities conducted by the Securities Company. Securities Company revenue includes, among others:

(1) Revenue from contracts with customers as an agent in the form of commission income;

(2) Revenue from contracts with customers as a principal in the form of service income; and/or

(3) Revenue from investment results in the form of returns received from investment activities and/or gains (losses) from securities trading transactions conducted for own account, including unrealized gains (losses) on securities measured at Fair Value through profit or loss.

b) When or during the fulfillment of the performance obligation, the Securities Company recognizes revenue for the amount of the transaction price allocated to the performance obligation (excluding estimates of variable consideration that are constrained).

c) Securities Companies must determine whether they are a principal or an agent for each specific good or service promised to customers in accordance with SAK provisions.

Expenses
This item represents expenses arising from the business activities of the Securities Company, including expenses for final income tax. Expenses must be detailed by type.
Other Income

a) Other income is income that cannot be directly linked to the business activities of the Securities Company.

b) This item represents income originating outside the types of income in item 1) above.

Other Expenses
This item represents expenses that are not related and cannot be directly linked to the business activities of the Securities Company and finance costs, such as expenses for final income tax arising from activities outside the Securities Company's business.
Finance Costs
This item represents finance costs, which are generally interest costs and other costs borne by the Securities Company, other than expenses in item 4) above.
Profit (Loss) Before Tax
This item represents the sum of total revenue and total expenses.
Tax Expense (Income)
This item is generally the aggregate amount of current tax and deferred tax considered in determining profit (loss) for a period.
Profit (Loss) for the Current Period
This item represents the sum of profit (loss) before tax and tax expense (income).
Other Comprehensive Income

a) Other comprehensive income contains income and expense items, including reclassification adjustments, that are not recognized in profit or loss as required or permitted by SAK.

b) Components of other comprehensive income include:

(1) that will not be reclassified further to profit or loss, including:

(a) revaluation surplus balance;

(b) Remeasurement of defined benefit plans;

(d) gains and losses from investments in equity instruments designated at Fair Value through other comprehensive income in accordance with SAK.

(2) that will be reclassified further to profit or loss, including:

(a) translation differences of financial statements in foreign currency;

(b) gains and losses in financial assets measured at Fair Value through other comprehensive income in accordance with SAK; and

c) Securities Companies present components of other comprehensive income at amounts before the related tax impact, except for the other comprehensive income portion from associates and/or joint ventures, which is presented after the related tax impact.

d) Reclassification adjustments are amounts reclassified to profit or loss for the current period that were previously recognized in other comprehensive income in the current or prior period.

Income Tax Related to Other Comprehensive Income
This item represents the cumulative income tax related to components of other comprehensive income, except for the other comprehensive income portion from associates and/or joint ventures.
Other Comprehensive Income for the Current Period After Tax
This item represents the sum of other comprehensive income and related income tax.
Total Comprehensive Profit or Loss for the Current Period
This item represents the sum of profit (loss) for the current period and other comprehensive income for the current period after tax.
Profit (Loss) Attributable to Owners of the Parent Entity and Non-Controlling Interests
Securities Companies must present the profit or loss for the current period that can be attributed to the owners of the parent entity and non-controlling interests in the Statement of Comprehensive Income and Profit or Loss.
Total Comprehensive Income for the Current Period Attributable to Parent Entity and Non-Controlling Interests

Securities companies must present total comprehensive income for the current period attributable to owners of the parent entity and non-controlling interests.

Basic and Diluted Earnings Per Share
a) In the event that a Securities Company is an Issuer or a Public Company, the Securities Company must present Basic and Diluted Earnings Per Share in the Statement of Profit or Loss and Other Comprehensive Income. b) Basic and diluted earnings per share must be presented for all periods presented as follows:
(1) Basic Earnings (Loss) Per Share
This item represents the total basic earnings (loss) per share from continuing operations attributable to owners of the parent entity during the reporting period. (2) Diluted Earnings (Loss) Per Share This item represents the total diluted earnings (loss) per share from continuing operations attributable to owners of the parent entity during the reporting period, taking into account all potentially dilutive ordinary share effects outstanding throughout the reporting period. c) In the event that basic and diluted earnings per share are the same, both may be presented in a single line in the Statement of Profit or Loss and Other Comprehensive Income. d) In the event there are discontinued operations, the Securities Company is required to present basic and diluted earnings (loss) per share which is the cumulative total of basic and diluted earnings (loss) per share from continuing operations and discontinued operations.

Statement of Changes in Equity
a. Definition
The Statement of Changes in Equity is a report that shows changes in the Equity of the Securities Company, describing the increase or decrease in Net Assets or Net Worth during the reporting period. b. Main Components This report is required to present:

Total comprehensive income for the current period, showing separately the total amounts attributable to owners of the parent entity and to non-controlling interests;
The impact of retrospective application or retrospective restatement permitted by Financial Accounting Standards (SAK) for each equity component;
A reconciliation between the carrying amount at the beginning and end of the period for each equity component, separately disclosing each change arising from:
a) Profit (loss) separating between retained earnings with designated use and those without designated use; b) Each item of other comprehensive income. Analysis of other comprehensive income by item may be presented in the notes to the financial statements if not presented in this section; and c) Transactions with owners in their capacity as owners, showing separately contributions from owners and distributions to owners, and changes in ownership interests in subsidiaries that do not result in loss of control.
c. Securities companies present in the Statement of Changes in Equity or notes to the financial statements, the amount of dividends recognized as distributions to owners during the period and the related dividend per share amount; and
d. Securities companies may adjust the main components mentioned above according to the characteristics of the Securities Company, only if such presentation is relevant to understanding the changes in Net Assets or Net Worth of the Securities Company, and disclosing the reasons and considerations.

Statement of Cash Flows
a. Definition
The statement of cash flows shows cash receipts and cash payments in the activities of the Securities Company during the reporting period and is classified according to operating, investing, and financing activities. b. Main Components

Cash Flows from Operating Activities
a) Cash flows from operating activities are cash flows primarily derived from the main revenue-generating activities of the Securities Company; therefore, these cash flows generally arise from transactions and other events that affect the determination of profit or loss. b) Securities companies are required to present cash flows from operating activities using the direct method. c) Cash flows related to income tax must be disclosed separately and classified as cash flows from operating activities, unless specifically identifiable as investing and financing activities.
Cash Flows from Investing Activities
Cash flows from investing activities reflect cash receipts and payments related to the acquisition and/or disposal of resources aimed at generating revenue and future cash flows.
Cash Flows from Financing Activities
Cash flows from financing activities are cash flows arising from cash receipts and payments that result in changes in the amount and composition of equity contributions and loans of the Securities Company.
c. Cash Flow Reporting on a Net Cash Flow Basis
Securities companies are required to present separately the main groups of gross cash receipts and gross cash payments arising from operating, investing, and financing activities, except for cash flows that can be reported on a net cash flow basis, namely as follows:
a) cash receipts and payments for customer interests if such cash flows more reflect customer activities than the activities of the Securities Company. Examples: Cash receipts and payments to customers related to Securities transactions; and b) cash receipts and payments for items with fast turnover, large amounts, and short maturity periods. Examples:
(1) Purchase and sale of investments; and
(2) Other short-term loans, for example, loans with a maturity period of three months or less.
In addition to what is stated in item 1) letter a) and letter b), cash flows from financial institution activities may be reported on a net cash flow basis, including as follows:
a) cash receipts and payments related to the receipt and repayment of time deposits with fixed maturities; b) placements and withdrawals of deposits at and from other financial institutions; and c) granting and repayment of advances and loans given to customers.

d. Cash Flows in Foreign Currency
The effect of exchange rate changes on Cash and Cash Equivalents in foreign currency is reported in the statement of cash flows to reconcile the beginning and ending balances of Cash and Cash Equivalents. The amount of unrealized foreign exchange gains and losses related to changes in the exchange rate of cash in foreign currency is presented separately from the cash flows of operating, investing, and financing activities, and includes differences if there are exchange rate differences, assuming such cash flows were reported at the exchange rate at the end of the period. e. Cash Flows from Interest and Dividends Received and Paid Cash flows from interest and dividends received and paid are each disclosed separately and consistently classified across periods as operating, investing, and financing activities. f. In the event there is a difference between the cash balance in the statement of financial position and the cash balance in the statement of cash flows, the Securities Company is required to present a reconciliation of such amounts in the statement of cash flows with the same items in the statement of financial position.

C. NOTES TO THE FINANCIAL STATEMENTS

General
a. Notes to the financial statements contain additional information on items presented in the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows. b. Securities companies are required to present notes to the financial statements that provide narrative descriptions or separation of items presented in the financial statements and information regarding items that do not meet the recognition criteria in the financial statements.
c. Securities companies are required to present notes to the financial statements in the following order:

general overview of the Securities Company;
basis of preparation of financial statements and summary of significant accounting policies applied;
additional information for items presented in the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows, in accordance with the order of presentation of the reports and presentation of each item; and
other disclosures including:
a) information required by SAK that is not presented in any part of the financial statements; and b) information not presented in any part of the financial statements, but which is relevant to understanding the financial statements. d. Securities companies are required to present notes to the financial statements systematically and cross-reference each item in the statement of financial position and statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for information related in the notes to the financial statements. e. Disclosures required for each item must be fully disclosed, unless such disclosure is not relevant or not applicable to the Securities Company. Securities companies are required to adjust disclosures according to industry characteristics if such disclosures are required by SAK or relevant to understanding the financial statements of the Securities Company. f. Securities companies are required to state in value or percentage terms to explain the existence of a part of an amount, not using the word "part" or "portion". g. In the event that the Assets of the Securities Company are insured, the type and value of insured Assets, the insurance coverage value, and the risks covered must be disclosed, as well as management's opinion on the adequacy of insurance coverage; if not insured, the reason must be disclosed.

Elements of Notes to the Financial Statements
a. General Overview
In this section, the following must be disclosed:

Establishment of the Securities Company, consisting of:
a) brief history of the Securities Company; b) number and date of the establishment deed and the latest amendments, approval from the competent authority, and number and date of the state gazette; c) domicile of the Securities Company and main location of business activities; d) business activities according to the Articles of Association of the Securities Company and activities carried out by the Securities Company during the reporting period; e) business licenses and/or business approvals from the Financial Services Authority (Otoritas Jasa Keuangan) and activities carried out by the Securities Company related to such licenses and/or approvals. f) management's assessment in determining the grouping of business activities or others; g) date of commencement of commercial operations of the Securities Company. In the event that the Securities Company conducts significant expansion or downsizing of business during the reporting period presented, the start of commercial operations from the expansion or downsizing of business must be mentioned; and h) name of the parent entity and name of the ultimate parent entity in the group. In the event it cannot be disclosed, the reason must be mentioned.
Public Offering of Securities,
For Securities Companies that are Issuers, the following must be disclosed:
a) number and date of the effectiveness letter of the public offering from the Financial Services Authority, including offerings of Securities issued outside Indonesia; b) type and number of Securities offered; c) date and name of the exchange where the Securities are listed; and d) actions of the Securities Company that can affect the number of Securities issued (corporate action) from the initial public offering to the last reporting period.
Structure of the Securities Company, Subsidiary Entities, and Special Purpose Entities (EBK)
For Securities Companies that are parent entities, the following must be disclosed:
a) name of controlled subsidiary entities and/or EBK, whether directly or indirectly; b) domicile; c) type of business; d) year of commercial operation; e) ownership percentage and proportion of voting rights if there is a difference between ownership percentage and voting rights proportion; f) total Assets; and g) other important information:
(1) nature of the relationship between the parent entity and the subsidiary entity if the parent entity does not have direct or indirect voting rights through the subsidiary entity of more than 50% (fifty percent) of the voting rights; (2) reasons why ownership, whether direct or indirect, of more than 50% (fifty percent) of voting rights or potential voting rights over the investee is not followed by Control; (3) end of the reporting period date of the financial statements of the subsidiary entity if the date/reporting period of such financial statements is used to prepare Consolidated Financial Statements and differs from the date/reporting period of the parent entity's financial statements, and the reason for using a different date/reporting period; (4) nature and extent of any significant restrictions on the ability of the entity to access or use Assets and settle Liabilities of the group; (5) impact of changes in the parent entity's ownership interest in the subsidiary entity that do not result in loss of Control; and (6) in the event of loss of Control over a subsidiary entity, the parent entity discloses:
(a) gains or losses, if there are gains and losses recognized from the loss of Control, and the portion of gains or losses attributable to measuring the remaining investment in the former subsidiary entity at Fair Value on the date of loss of Control; (b) the percentage of ownership released; (c) the amount of price received; (d) the portion of the price that is cash; (e) the amount of cash in the subsidiary entity where Control is released; and (f) the amount of Assets and Liabilities other than cash in the subsidiary entity where Control is released, summarized by their main categories.
Employees, Board of Directors, and Board of Commissioners, consisting of:
a) name and position for each member of the board of directors and board of commissioners; b) scope of key management personnel; and c) number of employees at the end of the period or average number of employees during the relevant period.
Issuance of Financial Statements, consisting of:
a) Date the Financial Statements were Authorized for Issue; and b) Party responsible for authorizing the financial statements.

b. Summary of Accounting Policies
In this section, the following must be disclosed:

Statement of Compliance with SAK
This statement is a statement that the financial statements have been prepared and presented in accordance with SAK.
Basis of Measurement and Preparation of Financial Statements
a) The basis of measurement of financial statements is based on historical cost, current cost, realizable value, or current value. b) The basis of preparation of financial statements is the accrual basis, except for the statement of cash flows. c) Functional currency and presentation currency used, including:
(1) functional currency of the Securities Company; (2) facts and reasons for changes, if there are changes in the functional currency of the Securities Company or significant foreign business activities, as long as they do not conflict with applicable regulations; and (3) presentation currency used and reasons for using a presentation currency other than the rupiah. d) Reasons for changes in the reporting period (if any).
Use of Significant Judgments, Estimates, and Assumptions by Management
a) Securities companies are required to disclose in the summary of accounting policies or other parts of the notes to the financial statements, the judgments that management has made in the process of applying accounting policies and have the most significant impact on the amounts recognized in the financial statements. b) Securities companies are required to disclose information about assumptions made regarding the future and sources of other estimation uncertainty at the end of the reporting period, which have significant risk resulting in material adjustment to the carrying amount of Assets and Liabilities in the following reporting period. c) Regarding Assets and Liabilities as referred to in letter b), notes to the financial statements include details on the nature and carrying amount at the end of the reporting period. d) Securities companies are required to explain the basis of inputs, assumptions, estimation techniques used, and the application of forward-looking to apply impairment requirements in accordance with SAK.
Specific Accounting Policies
Specific accounting policies are accounting policies applied and relevant to understanding the financial statements. Specific accounting policies include, but are not limited to, the following:
a) Consolidation Principle
Securities companies are required to explain among others:
(1) scope of Consolidated Financial Statements, including items of the parent entity and subsidiary entities; (2) basis and when a subsidiary entity is consolidated into the financial statements of the parent entity; (3) accounting policies regarding changes in ownership without loss of Control over subsidiary entities; (4) accounting policies regarding loss of Control over subsidiary entities; (5) accounting policies regarding recording and presentation of non-controlling interests; and (6) statement that balances of material inter-entity items and transactions of consolidated entities have been eliminated. b) Cash and Cash Equivalents Securities companies are required to explain among others policies in determining components of cash and cash equivalents. c) Financial Instruments Securities companies are required to explain among others:
(1) financial instruments other than investments in sukuk and issued sukuk are:
(a) initial recognition of financial instruments in each category, including treatment of transaction costs; (b) measurement after initial recognition of financial instruments in each category; (c) offsetting provisions for financial instruments; (d) calculation methods, criteria for significant increase in credit risk, grouping of collective impairment, and definition of default used to determine impairment of Financial Assets; (e) derecognition provisions for financial instruments; and (f) specifically for derivative financial instruments and hedge accounting, in addition to explanations as referred to in letter (a), letter (b), letter (c), letter (d) and letter (e), explanations must be added regarding:
i. criteria fulfillment for hedge accounting;
ii. classification of hedges for hedge accounting purposes for derivative financial instruments; and
iii. hedge accounting treatment for hedge accounting purposes.
(2) investments in sukuk are:
(a) classification and reclassification of investments in sukuk; (b) initial recognition of investments in sukuk; (c) measurement after initial recognition of investments in sukuk; (d) explanation of presentation of investment income on sukuk; and (e) presentation of amortization of transaction costs. (3) issued sukuk are:
(a) initial recognition of sukuk;
(b) measurement after initial recognition of sukuk; (c) transaction costs of issuing sukuk; (d) presentation position of sukuk; and (e) Shariah contracts used.

d) Revenue and Expense Recognition
Securities companies are required to explain among others:
(1) conditions and methods of revenue recognition and the basis of measurement used based on the types of revenue available; (2) expense recognition; and (3) revenue and sales recognition policies and related expenses from agency relationships, in the event of agency relationship transactions. e) Income Tax Securities companies are required to explain among others:
(1) basis for determining tax rates to measure current and deferred tax; (2) offsetting provisions; (3) recognition and measurement of Deferred Tax Assets; and (4) methods used in assessing Deferred Tax Assets/Liabilities. f) Related Party Transactions Securities companies are required to explain among others policies applied to transactions between the Securities Company and Related Parties. g) Fair Value Securities companies are required to explain among others methods and inputs used in determining Fair Value of Assets and Liabilities. h) Property, Plant, and Equipment Securities companies are required to explain among others:
(1) initial recognition of fixed Assets;
(2) measurement after initial recognition of fixed Assets; (3) grouping of fixed Assets; (4) depreciation methods used for fixed Assets that must reflect the pattern of future economic benefits of the Assets expected by the Securities Company; (5) capitalization of costs related to fixed Assets; (6) estimated useful life and depreciation rates; (7) derecognition; (8) residual value; and (9) statement that management has reviewed estimates of economic life, depreciation methods, and residual value at the end of each reporting period. i) Investments in Associate Entities Securities companies are required to explain among others the methods used to record investments in associate entities. j) Interests in Joint Ventures Securities companies are required to explain among others the methods used to record interests in joint ventures. k) Intangible Assets Securities companies are required to explain among others:
(1) initial recognition of intangible Assets;
(2) measurement after initial recognition of intangible Assets; (3) indefinite or limited useful life, and if the useful life is limited, the amortization rate used and its useful life are disclosed; (4) source of occurrence of intangible Assets; (5) amortization methods used; (6) derecognition of intangible Assets; and (7) research and development if there is research and development. l) Leases Securities companies are required to explain among others:
(1) policy for determining whether an agreement contains a lease; and (2) accounting policies if the Securities Company acts as a lessee and/or lessor. m) Borrowing Costs Securities companies are required to explain among others the conditions requiring borrowing costs to be capitalized as part of the cost of qualifying Assets. n) Impairment of Non-financial Assets Securities companies are required to explain among others:
(1) provisions for events and conditions indicating the possibility of impairment; and (2) accounting policies for recognition of impairment of non-financial Assets and its reversal. o) Employee Benefits Securities companies are required to explain among others:
(1) types of employee benefits provided to employees; (2) general description of post-employment benefit programs organized by the Securities Company; (3) accounting policies of the Securities Company in recognizing actuarial gains and losses; and (4) recognition of gains and losses for curtailment and settlement. p) Transactions and Balances in Foreign Currency Securities companies are required to explain among others:
(1) provisions in translating transactions and balances in foreign currency;

(2) Accounting treatment for exchange rate differences arising from the translation of Monetary Assets and Liabilities; and (3) References and exchange rates used to translate transactions and balances in foreign currencies.

q) Earnings (loss) per share
Securities companies that are Issuers or Public Companies must explain, among other things, the basis for calculating basic earnings (loss) per share and diluted earnings (loss) per share.

c. Disclosures on Financial Statement Items

Assets

a) Cash and Cash Equivalents
Securities companies must disclose, among other things:
(1) Elements of Cash and Cash Equivalents with Related Parties and Third Parties; (2) Details of bank deposits based on bank name and currency type; (3) Range of contractual interest rates for Cash Equivalents during the reporting period; (4) Reasons and basis for the formation of impairment loss allowances; (5) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances;

(6) Reconciliation of impairment loss allowances, separated for 12-month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (7) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (8) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and (9) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

b) Restricted Cash and Cash Equivalents
Securities companies must disclose, among other things:
(1) Elements of Restricted Cash and Cash Equivalents with Related Parties and Third Parties; (2) Details of the type and amount of Restricted Cash and Cash Equivalents based on bank name and currency type; (3) Important description of Restricted Cash and Cash Equivalents; (4) Reasons for reclassification from items previously not included in Restricted Cash and Cash Equivalents; (5) Management's opinion on significant Cash and Cash Equivalent balances that cannot be used by the group; (6) Reasons and basis for the formation of impairment loss allowances;

(7) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances; (8) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (9) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (10) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and (11) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

c) Time Deposits
Securities companies must disclose, among other things:
(1) Details of the type and amount of time deposits based on bank name and currency type. Bank names are separated between Third Parties and Related Parties;

(2) Range of deposit interest rates during the reporting period; (3) Carrying amount of time deposits longer than 3 (three) months pledged as collateral, if there are deposits pledged as collateral; (4) Other matters that may affect the liquidity quality of deposits; (5) Reasons and basis for the formation of impairment loss allowances; (6) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances; (7) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (8) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (9) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and (10) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

d) Securities Portfolio
Securities companies must disclose, among other things:
(1) General description of each type of Securities Portfolio; (2) Specifically for Securities Portfolios in the form of KIK investment products, a general description including, among other things, the type and name of the underlying asset issuer; (3) Details of the type and amount of Securities Portfolios based on Financial Asset classification, separated between Third Parties and Related Parties; (4) Details of the type and carrying amount of Securities Portfolios separated by currency and interest rate of securities; (5) Gains/losses caused by changes in the Fair Value of owned portfolios, and their recording in accordance with their classification; (6) Total interest income calculated using the effective interest rate method for Securities Portfolios other than those measured at Fair Value through profit or loss; (7) If the Securities Company reclassifies Securities Portfolios in accordance with SAK, the Securities Company discloses the amounts reclassified from and to each category and the reason for reclassification; (8) For each group of Securities Portfolios, the Securities Company discloses the Fair Value of that group of Securities Portfolios in a manner that allows comparison with their carrying amount and the hierarchy level used in determining the Fair Value of the Securities Portfolio;

(9) For separated Securities Portfolios, the carrying amount of Financial Assets pledged as collateral is disclosed if there are Financial Assets pledged as collateral, along with the terms and conditions related to the collateral; (10) For Securities Portfolios used as hedging instruments:
(a) description of each type of hedge;
(b) description of financial instruments designated as hedging instruments and their Fair Value at the end of the reporting period; (c) type of risk being hedged; and (d) for cash flow hedges:
i. period when cash flows are expected to occur and when cash flows are expected to affect profit or loss;
ii. description of forecast transactions for which hedge accounting was previously used but are no longer expected to occur;
and
iii. amount recognized in other comprehensive income during the period;
(11) Reasons and basis for the formation of impairment loss allowances; (12) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and

(d) the net amount of Financial Assets after deducting impairment loss allowances; (13) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (14) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (15) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and (16) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

e) Transferred Securities Portfolio
Securities companies must disclose, among other things:
(1) Details of the type and carrying amount of transferred Financial Assets based on Financial Asset classification, separated between Third Parties and Related Parties; (2) Amount of Transferred Securities Portfolios by currency and interest rate of securities; (3) Change in Fair Value of each type of Transferred Securities Portfolio measured at Fair Value through profit or loss; (4) If the Securities Company reclassifies Transferred Securities Portfolios in accordance with SAK, the Securities Company discloses the amount of Securities pledged that were reclassified from or to each category and the reason for reclassification;

(5) The Securities Company may have transferred Financial Assets such that part or all of the Financial Assets do not meet the qualification for derecognition. The Securities Company discloses for each group of Financial Assets:
(a) type of Asset;
(b) type of risk and benefits of ownership that remain with the Securities Company; (c) if the Securities Company continues to recognize all Assets, the carrying amount of Assets and related Liabilities; and (d) if the Securities Company continues to recognize Assets to the extent of continuing involvement, the total carrying amount of initial Assets, the amount of Assets where the Securities Company continues to recognize, and the carrying amount of related Liabilities; (6) Reasons and basis for the formation of impairment loss allowances; (7) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances; (8) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (9) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (10) Explanation of the impact of modifications on contractual cash flows on expected credit losses; (11) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment; and (12) Specifically for Securities Portfolios that are lent, the following are disclosed:
(a) information enabling users of financial statements to evaluate the type and magnitude of risks arising from securities lending activities as regulated in SAK, which must be disclosed in the management risk disclosure group; and (b) maturity of securities lending transactions by type of Security. (13) Specifically for Securities Portfolios that are repurchased and Securities Portfolios that are pledged, the following are disclosed:
(a) terms and conditions of transactions related to repurchased Securities Portfolios and pledged Securities Portfolios; and (b) the Securities Company's ability to meet obligations, and if there is a potential inability to meet obligations, the Securities Company must disclose this.

f) Trade Receivables
Securities companies must disclose, among other things:
(1) Amount of receivables separated between Third Parties and Related Parties; (2) Specifically for receivables from Related Parties, disclosed by Related Party name; (3) Amount of receivables by currency; (4) Reasons and basis for the formation of impairment loss allowances; (5) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances; (6) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (7) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (8) Explanation of the impact of modifications on contractual cash flows on expected credit losses; (9) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment; (10) Amortized amount using the effective interest rate method; and (11) Continuing involvement information over transferred receivables, including:
(a) amount transferred, interest expense, retention, maturity, and other important covenants regulated in the agreement; and (b) collateral provided, if there is collateral.

g) Receivables from Securities Broker Transactions Securities companies must disclose, among other things:
(1) Details of receivable types based on Counterparty, including receivables from KLP, customers, and/or other Securities Companies; (2) Customer receivables are separated for each customer, namely NPR and NK; (3) Customer receivables and/or receivables from other Securities Companies are separated based on Third Parties and Related Parties; (4) Counterparty name, interest rate, and amount of Related Party receivables; (5) Amount of receivables by transaction type; (6) Amount of receivables by currency; (7) Reasons and basis for the formation of impairment loss allowances; (8) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and

(d) the net amount of Financial Assets after deducting impairment loss allowances; (9) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (10) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (11) Explanation of the impact of modifications on contractual cash flows on expected credit losses; (12) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment; (13) Disclosures related to margin money, if there is margin money:
(a) carrying amount of Financial Assets pledged as collateral for Liabilities or Contingent Liabilities, including amounts that have been reclassified in accordance with SAK; and (b) terms and conditions related to the collateral; (14) Specifically for customer receivables, disclose:
(a) details of regular transactions consisting of transactions that have matured but are not yet settled and transactions that have not yet matured; and

(b) carrying amount of receivables pledged as collateral, if there are receivables pledged as collateral; and (15) Specifically for receivables from other Securities Companies:
(a) Disclosures related to margin money for securities lending include, among other things:
i. Fair Value of Financial Assets lent by other Securities Companies; and
ii. terms and conditions related to the lending.
(b) Disclosures related to transactions are separated, including, among other things:
i. basis of determination (information regarding the determination letter);
ii. Securities and amount transacted; and
iii. regulatory basis used as reference.

h) Receivables from Securities Underwriting Transactions Securities companies must disclose, among other things:
(1) Details of the amount of receivables arising from securities underwriting transactions, both through public offerings and not through public offerings, other than those included in trade receivables; (2) Amount of receivables by currency; (3) Reasons and basis for the formation of impairment loss allowances; (4) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances;

(c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances.
(5) Reconciliation of impairment loss allowances, separated for 12-month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (6) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (7) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and/or (8) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

i) Receivables from Investment Management Transactions Securities companies must disclose, among other things:
(1) Details of the amount of receivables arising from investment management transactions, other than those included in trade receivables; (2) Amount of receivables by currency; (3) Reasons and basis for the formation of impairment loss allowances; (4) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and

(d) the net amount of Financial Assets after deducting impairment loss allowances.
(5) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (6) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (7) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and (8) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

j) Repo Transaction Receivables
Securities companies must disclose, among other things:
(1) Counterparty name;
(2) Amount of receivables separated between third parties and Related Parties; (3) Details of the type and amount of Securities transacted; (4) Details of the type and amount of repo Securities re-transacted (re-repo transactions) by the buyer (if any); (5) Purchase date and repurchase date; (6) Purchase price and repurchase price; (7) Location of collateral Securities; (8) Interest rate of repo transaction receivables; (9) Repo maturity;

(10) Interest rate on cash margin if there is cash margin; (11) Type and amount of Security margin and/or cash margin if there is Security margin and/or cash margin; (12) Reasons and basis for the formation of impairment loss allowances; (13) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances; (14) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (15) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (16) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and (17) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

k) Other Receivables
Securities companies must disclose, among other things:
(1) Details of the type and amount of other receivables; (2) Amount of other receivables separated between Third Parties and Related Parties; (3) Amount of receivables by currency; (4) Reasons and basis for the formation of impairment loss allowances; (5) Details of the movement of Financial Assets showing:
(a) the gross amount of Financial Assets before deducting impairment loss allowances; (b) the amount of impairment loss allowances; (c) the amount of Financial Asset recoveries; and (d) the net amount of Financial Assets after deducting impairment loss allowances; (6) Reconciliation of impairment loss allowances, separated for 12 (twelve) month expected credit losses and lifetime expected credit losses, as well as Financial Assets purchased or originated with credit impairment, with details in accordance with SAK; (7) Explanation of how significant changes in the gross carrying amount of financial instruments during the reporting period contributed to changes in allowances; (8) Explanation of the impact of modifications on contractual cash flows on expected credit losses; and (9) Management's opinion on the sufficiency of the allowance amount or management's statement of belief that there is no impairment.

l) Prepaid Expenses
Securities companies must disclose, among other things:
(1) Details of the type and amount of prepaid expenses; and (2) The amount of amortization for deferred expenses must be explained, including, among other things, the method and period of amortization.

m) Prepaid Taxes
Securities companies must disclose, among other things:
(1) Details by type and amount of each tax; and (2) Description of the amount of tax refunds applied for and their status.

n) Investments in Associate Entities
Securities companies must disclose, among other things:
(1) Name of the associate entity;
(2) Percentage of ownership and explanation of the existence of Significant Influence, along with the reasons; (3) Carrying amount and Fair Value of investments in associate entities with available market quotations; (4) Summary of financial information of the associate entity, including aggregate amounts of Assets, Liabilities, income, and profit or loss; (5) Reasons for the absence of Significant Influence even though the Securities Company holds more than 20% (twenty percent) of voting rights or potential voting rights of the investee directly or indirectly; (6) End of the reporting period of the associate entity's financial statements, when those financial statements are used in applying the equity method and the date or period is different from the issuer or public company, and the reason for using a different date or period;

(7) the nature and level of each significant restriction on the ability of the associate entity to transfer funds to the Securities Company; (8) the associate's share of unrecognized losses and the reasons therefor, if the Securities Company ceases to recognize its share of the associate's losses, both for the period in which the loss occurred and cumulatively; (9) the share of contingent liabilities of the associate incurred jointly with other investors; (10) Contingent Liabilities incurred because the investor is jointly liable for all or part of the associate's Liabilities; and (11) a summary of the financial information of the associate, individually or in groups, that is not recorded using the equity method, including total Assets, total Liabilities, revenue, and profit or loss. o) Intangible Assets (1) The Securities Company is required to disclose information related to Intangible Assets items as regulated in SAK. (2) For investments in membership of the Securities Company on the Stock Exchange, the following must be disclosed:
(a) for investments valued with an indefinite useful life, the recorded amount of Assets and the reasons supporting the valuation of indefinite useful life. In providing reasons, the Securities Company explains significant factors in determining Assets that have an indefinite useful life; and (b) information regarding impairment of the investment. p) Fixed Assets The Securities Company is required to disclose among other things:
(1) each group of Fixed Assets must be disclosed separately based on Asset ownership, i.e., directly owned Fixed Assets and/or leased Fixed Assets; (2) reconciliation of the gross recorded amount and accumulated depreciation of Fixed Assets at the beginning and end of the period, showing additions, disposals, and reclassifications; (3) the amount of depreciation for each presentation period and the allocation of depreciation expense; (4) impairment losses and amounts reversed that are recognized in profit or loss and other comprehensive income, if there are impairment losses and amounts reversed that are recognized in profit or loss and other comprehensive income; (5) The amount of contractual commitments in the acquisition of Fixed Assets; (6) The amount of compensation from third parties for Fixed Assets that have suffered impairment, loss, or discontinuation, which is included in profit or loss, if not disclosed separately in the statement of profit or loss and other comprehensive income; (7) In the event that Fixed Assets are presented using the revaluation model, in addition to the disclosures referred to in items (1) to (6) above, the Securities Company is also required to disclose among other things:

(a) the effective date of revaluation (valuation date); (b) the effective date of approval from the Directorate General of Taxes (DGT) if Fixed Assets for tax calculations use the revalued amount; (c) the name of the valuer and the latest valuation report; (d) significant methods and assumptions used in determining the Fair Value of Assets; (e) the recorded amount for each class of Fixed Assets if such Assets were recorded using the cost model; and (f) revaluation surplus or impairment loss, showing changes during the period and restrictions on the distribution of surplus balances to shareholders. (8) Specifically for Fixed Assets under construction and development, the Securities Company is required to disclose among other things:
(a) details of Fixed Assets currently under construction; (b) the percentage of the recorded amount against the contract value; (c) estimates upon completion; (d) obstacles to continued completion if there are obstacles; (e) the amount of expenditure recognized in the recorded amount of Fixed Assets under construction; and (f) in the event that borrowing costs are capitalized for Assets that meet the criteria for Qualifying Assets, the following must be disclosed:

i. the amount of borrowing costs capitalized during the current period; and
ii. the capitalization rate used to determine the amount of borrowing costs eligible for capitalization.
(9) Other disclosures include among other things:
(a) the recorded amount of Fixed Assets that are temporarily unused; (b) the existence and amount of restrictions on ownership rights and Fixed Assets pledged for Liabilities; (c) the gross recorded amount of each Fixed Asset that has been fully depreciated and is still in use; (d) the recorded amount of Fixed Assets that have been discontinued from active use and are not classified as held for sale; (e) in the event the cost model is used, the Fair Value of Fixed Assets for each class of Fixed Assets; (f) book value, net sales proceeds, profit/loss from Fixed Assets whose recognition is discontinued; (g) in the event there are Fixed Assets derived from grants, the type of Asset, recorded value, and acquisition date must be disclosed; (h) changes in useful life estimates and/or depreciation method by type of Fixed Asset; and (i) conditions or events that cause impairment or recovery of impairment.

q) Other Assets
The Securities Company is required to disclose among other things:

details of the types and amounts of Other Assets and important descriptions of the Assets concerned;
reasons for changes in classification of Assets that were previously not included in Other Assets or vice versa;
for types of Fixed Assets that are no longer actively used and held for sale (scrapped), the recorded value and net realizable value must be disclosed;
details of changes in financial Assets showing:
(a) the gross amount of receivables before deducting the allowance for expected credit losses; (b) the amount of the allowance for expected credit losses; (c) the amount of recovery of financial Assets; and (d) the net amount of financial Assets after deducting the allowance for expected credit losses.
reconciliation of the allowance for expected credit losses, separated for 12-month expected credit losses and lifetime expected credit losses, as well as financial Assets purchased or from deteriorating financial Assets, with details in accordance with SAK;
Explanation of how significant changes in the gross recorded amount of financial instruments during the reporting period contributed to changes in the allowance;
Explanation of the impact of modifications on contractual cash flows on expected credit losses; and
Management's opinion on the adequacy of the allowance amount or management's statement of assurance that there is no impairment.
Liabilities
a) Trade Payables
The Securities Company is required to disclose among other things:
(1) the amount of trade payables separated between Third Parties and Related Parties; (2) specifically for payables to Related Parties, disclosure is required by the name of the Party; (3) the amount of trade payables by currency; and (4) guarantees provided by the Securities Company by indicating the related accounts. b) Payables from Securities Broker Transactions The Securities Company is required to disclose among other things:
(1) details of the types of payables based on Parties, including payables to Audit Firms, clients, and/or other Securities Companies; (2) client payables are separated for each client, i.e., NPR and NK; (3) client payables and/or payables to other Securities Companies are separated based on Third Parties and Related Parties; (4) the name of the party, interest rate, and amount of Related Party payables; (5) the amount of payables by type of transaction; (6) the amount of payables by currency; (7) the amount, name of the Party, and type of transaction related to credit balances for funds borrowed by the Securities Company from clients; (8) disclosures related to collateral, if there is collateral:
(a) the recorded amount of financial Assets pledged as collateral for Liabilities or Contingent Liabilities, including amounts that have been reclassified in accordance with SAK; and

(b) the terms and conditions related to the collateral; (9) in the event the Securities Company initially recognizes a financial Liability to be measured at Fair Value through profit or loss, disclosures must be made in accordance with the requirements stipulated in SAK; (10) specifically for client payables, the following must be disclosed:
(a) the name of the Party, interest rate, and amount of payables to each NPR outside of transactions; and (b) the recorded amount of collateral submitted if there is submission of collateral; (11) specifically for payables to other Securities Companies, disclosures related to collateral for borrowing Securities, if the Securities Company has collateral (financial Assets or non-financial Assets) and is permitted to sell or re-pledge without prior default by the owner of the collateral, must disclose among other things:
(a) the Fair Value of the collateral held;
(b) the Fair Value of each collateral sold or re-pledged, and whether the Securities Company is obligated to return the collateral; and (c) the terms and conditions related to the use of the collateral; and (12) specific disclosures related to Short Position Securities payables must disclose, among other things, details regarding the type and amount of Short Position Securities. c) Payables from Securities Underwriting Transactions The Securities Company is required to disclose among other things:
(1) details of the amount of payables arising from securities underwriting transactions, both through public offerings and not through public offerings, other than those included in trade payables; and (2) the amount of payables by currency. d) Payables from Investment Management Transactions The Securities Company is required to disclose among other things:
(1) details of the amount of payables arising from investment management transactions, other than those included in trade payables; and (2) the amount of payables by currency. e) Repo Transaction Payables The Securities Company is required to disclose among other things:

name of the party/counterparty;
the amount of payables separated between Third Parties and Related Parties;
details of the types and amounts of Securities transacted;
purchase date and repurchase date;
purchase price and repurchase price;
location of collateral Securities;
interest rate of repo transaction payables;
repo tenor;
interest rate on cash margin if there is cash margin; and
type and amount of Security margin and/or cash margin if there is Security margin and/or cash margin.
f) Tax Payables
The Securities Company is required to disclose among other things the types and amounts of tax payables and information regarding tax assessments. g) Accrued Expenses The Securities Company is required to disclose among other things:
(1) the types and amounts of components that are material in amount; and

(2) other accrued expenses that are not detailed separately due to immaterial amounts, combined into a separate component, but the nature and main elements must also be explained. h) Short-Term Payables The Securities Company is required to disclose details of:
(1) Short-term Debt Instruments, including among other things:
(a) details of the type, nominal value, and recorded value in Rupiah and foreign currency, maturity date, and interest rate; (b) explanation of guarantees and other terms; and (c) explanation regarding the condition of short-term debt instruments. (2) The portion of Long-Term Liabilities that will mature soon; The Securities Company is required to disclose the portion of Long-Term Liabilities that will mature soon in accordance with the disclosure of long-term payables and long-term debt instruments as regulated in this regulation. (3) Other Short-Term Payables, including among other things:
(a) details of the type, nominal value, and recorded value in Rupiah and foreign currency, maturity date, and interest rate; (b) grouping other short-term payables according to classification, separated between Third Parties and Related Parties; (c) explanation of guarantees and other terms;

(d) explanation regarding the condition of other short-term payables; (e) other significant events, including the Securities Company's compliance in meeting requirements; and (f) specifically for Liabilities arising from the sale of Repo Securities by the buyer (in repo transactions) to other Parties, the following must be disclosed among other things:

i. name of the Party/counterparty;
ii. type and amount of Repo Securities re-transacted (sale of Repo Securities) by the buyer;
iii. date of sale of Repo Securities;
iv. sale price of Repo Securities;
v. Fair Value of Repo Securities;
vi. unrealized profit/loss;
vii. location of Repo Securities; and
viii. in the event the Securities Company initially recognizes a financial Liability to be measured at Fair Value through profit or loss, disclosures must be made in accordance with the requirements stipulated in SAK;
i) Long-Term Payables
The Securities Company is required to disclose among other things:
(1) details of the amount of payables based on the name of the bank/financial institution and type of currency; (2) the amount of payables separated between Third Parties and Related Parties; (3) the range of contractual interest rates during the reporting period; (4) maturity date;

(5) the amount of the portion that will mature within 12 (twelve) months; (6) explanation of loan facilities obtained, including the amount and purpose of acquisition; (7) payments made during the current period for each loan facility; (8) details of each default during the period consisting of principal, interest, repayment funds, or withdrawal conditions of the loan; (9) the recorded amount of loans received that have defaulted at the end of the reporting period; (10) description of the settlement of defaults or renegotiation of loan receipt terms; (11) guarantees provided by indicating related accounts; (12) other important requirements, such as restrictions on dividend distribution, restrictions on certain ratios and/or restrictions on acquiring new debt; and (13) other significant events, including the Securities Company's compliance in meeting requirements and debt conditions, such as debt restructuring and default conditions. j) Long-Term Debt Instruments (1) The Securities Company is required to disclose among other things:
(a) details regarding the type, nominal value, and recorded value in Rupiah and foreign currency, maturity date, interest payment schedule, interest rate, stock exchange where the debt instrument is listed, and the purpose of issuance;

(b) the amount of the portion that will mature within 12 (twelve) months; (c) rating and name of the Securities Rating Company; (d) name of the trustee and business relationship with the Securities Company; (e) details of each default during the period from principal, interest, repayment funds, or withdrawal conditions of the loan; (f) the recorded amount of loans received that have defaulted at the end of the reporting period; (g) description of the settlement of defaults or renegotiation of loan receipt terms; (h) guarantees and establishment of funds for repayment of principal debt by indicating related accounts, if there are guarantees and establishment of funds for repayment of bond principal; (i) restrictions stipulated in the trust deed and other important requirements; and (j) other significant events, including the Securities Company's compliance in meeting requirements and debt conditions, such as debt restructuring and default conditions. (2) For long-term debt instruments in the form of Sukuk, in addition to the mandatory disclosures in item (1) above, the following must also be disclosed:
(a) Sukuk grouped by the Shariah contract used; and (b) description of the main requirements in the issuance of Sukuk, including:

i. summary of the Shariah contract and the Shariah transaction scheme used;
ii. Assets, benefits, or activities underlying;
iii. nominal value;
iv. amount of remuneration, for Ijarah Sukuk;
v. profit-sharing principle, basis for profit sharing, and amount of profit-sharing ratio, for Mudharabah Sukuk;
vi. planned schedule and method of distribution and/or payment of remuneration or profit sharing;
vii. tenor;
viii. purpose of issuance; and
ix. other important requirements
k) Employee Benefits Liabilities
The Securities Company is required to disclose among other things:
(1) short-term employee benefits: types and amounts of short-term employee benefits.
(2) post-employment benefits: defined contribution plans: the amount recognized as expense for defined contribution plans.
(3) post-employment benefits: defined benefit plans:
(a) information explaining the characteristics of the defined benefit plan and associated risks; (b) information identifying and explaining the amounts arising from the defined benefit plan in the financial statements; (c) information explaining how the defined benefit plan impacts the amount, timing, and uncertainty of the entity's future cash flows; and

(d) specifically for Securities Companies participating in multi-employer defined benefit plans, disclosures must be made as required by SAK.
(4) Other long-term employee benefits: types and amounts of other long-term employee benefits.
(5) Termination benefits:
(a) description of the program and amount of termination benefits; and (b) explanation regarding Contingent Liabilities if there are Contingent Liabilities related to termination benefits. l) Subordinated Payables The Securities Company is required to disclose among other things:
(1) name of the creditor, nature of the obligation, tenor, type of currency, and range of contractual interest rates during the reporting period; (2) purpose of acquisition; (3) requirements related to the repayment of subordinated debt; (4) other significant events, including the Securities Company's compliance in meeting requirements and debt conditions (e.g., debt restructuring, and default conditions); and (5) other important requirements, such as fulfillment of covenant obligations and obtaining approval. m) Convertible Bonds The Securities Company is required to disclose among other things:
(1) details regarding the type, nominal value, and recorded value, maturity date, interest payment schedule, interest rate, stock exchange where convertible bonds are listed, and the purpose of issuance;

(2) conversion period and conversion requirements, including among other things the conversion ratio, exercise price, conversion rights before maturity and their requirements, and penalties; (3) dilution impact if all bonds are converted, considering the most favorable conversion rate or exercise price from the perspective of convertible bond holders; (4) the amount of bonds that have been converted and their dilution impact; (5) rating and name of the Securities Rating Company; (6) the amount of the portion that will mature within 12 (twelve) months; (7) name of the trustee and business relationship with the Securities Company; (8) guarantees and establishment of funds for repayment of bond principal by indicating related accounts, if there are guarantees and establishment of funds for repayment of bond principal; (9) other significant events, including the Securities Company's compliance in meeting requirements and debt conditions such as debt restructuring and default conditions; (10) in the event the Securities Company issues convertible bonds without a public offering, the purpose of issuance and the name of the buyer must be disclosed; (11) the Liability component of convertible bonds; (12) the existence of embedded derivative features; and (13) other important requirements. n) Other Payables The Securities Company is required to disclose among other things:
(1) details of the types and amounts of other payables; and

(2) the amount of other payables separated between Third Parties and Related Parties.
3) Equity
a) Equity attributable to owners of the parent entity, including among other things:
(1) Share Capital
The Securities Company is required to disclose among other things:
(a) Description of each type of Share of the Securities Company including among other things:

i. number of basic share capital;
ii. number of shares issued and fully paid, and issued but not fully paid;
iii. nominal value of shares, or value of shares that do not have a nominal value;
iv. reconciliation of the number of shares outstanding at the beginning and end of the period;
v. rights, privileges, and restrictions attached to each type of share, including restrictions on dividends and return of capital;
vi. Shares of the Securities Company controlled by the Securities Company itself or by subsidiaries or associates; and
vii. shares reserved for issuance with option rights and share sale contracts, including the amount and requirements;
(b) Shareholder composition, namely:

i. shareholders owning 5% or more;

ii. names of directors and commissioners who own shares; and
iii. Other Shareholders.
By disclosing the number of shares, ownership percentage, and nominal value amount for each of these shareholders.
(c) In the event of changes in share capital during the current year, the following must be disclosed:

i. decisions related to changes in share capital, such as approval by the Ministry of Law and Human Rights and the General Meeting of Shareholders (GMS);
ii. sources of increase in share capital, including among other things donated capital and other additional paid-in capital, differences from revaluation of Fixed Assets, exercise of warrants, conversion of bonds, etc.;
iii. recording method and number of shares obtained back, in the event of repurchase of issued shares; and
iv. purpose of changes in share capital, including among other things for expansion or debt repayment.
(d) In the event that only part of the Securities Company's shares are listed on the Stock Exchange, the number of shares listed and not listed on the Stock Exchange must be stated. (2) Additional Paid-in Capital The Securities Company is required to disclose among other things:
(a) details of the amount of additional paid-in capital;

(b) description of the source of share premium; (c) details of equity issuance costs based on the issuance of equity securities; (d) description regarding the nature and origin of exchange differences on paid-in capital; (e) description of the type of Assets and amount of donated capital; (f) description regarding the nature and origin of other additional paid-in capital; and (g) disclosure for transaction differences with entities under common control, including among other things:

i. name and explanation of the entity or business combining;
ii. explanation of the common control relationship of the transacting entities and that the relationship is not temporary;
iii. effective date of the transaction;
iv. operations or business activities that have been decided to be sold or discontinued due to the business combination;
v. ownership of the entity or business transferred and the type and amount of consideration incurred;
vi. recorded value of the combined or transferred business and the difference between the recorded value and the amount of consideration paid or received; and
vii. disclosure regarding the restatement of financial statements as regulated in SAK, which provides information at least as follows:

i) summary of financial statement figures previously reported for the period restated; ii) summary of the recorded amount of Assets and Liabilities of the entity or business combined; iii) impact of accounting policy adjustments; and iv) summary of financial statement figures after restatement. (3) Transaction Differences with Non-Controlling Parties The Securities Company is required to disclose among other things:
(a) description of ownership change transactions without loss of Control including:

i. type of transaction and change in ownership percentage;
ii. name of the subsidiary; and
iii. name of the transacting Party;
(b) calculation of transaction differences from ownership changes without loss of Control; and (c) the amount realized in profit or loss upon disposal of investment upon loss of Control. (4) Treasury Shares The Securities Company is required to disclose among other things:
(a) explanation regarding the decision underlying the repurchase of the Securities Company's shares, including among other things the background of the share repurchase,

release, or reduction of paid-up capital;
(b) the date or period of acquisition and the number of shares and value of treasury shares acquired; (c) the date and number of treasury shares used as a reduction of paid-up capital; (d) the date and number of treasury shares re-released and the difference between the acquisition price and the release price of treasury shares; (e) the accumulated number of shares and value of treasury shares; and (f) procedures and conditions for the repurchase of the Securities Company's shares. (5) Retained Earnings Securities Companies are required to disclose among other things:
(a) changes in retained earnings in the relevant period and the relevant General Meeting of Shareholders (GMS) approval; (b) the reasons and amount of prior period adjustments, if any adjustments exist; and (c) the retained earnings determined for their use, the nature, and the purpose of each reserve item. (6) Other Equity Components (Other Comprehensive Income) Securities Companies are required to disclose among other things information regarding changes in each component of other comprehensive income disclosed separately for:
(a) Other comprehensive income that will not be reclassified subsequently to profit or loss; and (b) Other comprehensive income that will be reclassified subsequently to profit or loss, along with its analysis, where such analysis may be presented in the Statement of Changes in Equity if not presented in this section. b) Non-controlling Interests Securities Companies are required to disclose among other things details of the non-controlling shareholders' portion of equity of each subsidiary entity that cannot be attributed directly or indirectly to the parent entity.
4) Revenue
Securities Companies are required to disclose among other things:
a) the amount of each significant category of Revenue recognized during the period, based on transactions conducted by the Securities Company, including:
(1) Revenue from contracts with customers, including:
(a) Commission revenue, e.g., intermediaries and syndicate members.
(b) Service revenue, e.g., advisory and underwriting (lead underwriter) which is most responsible to the issuer of Securities in the event of failure in syndicate underwriting. (2) Revenue from investment results, including:
(a) Returns received from investment results, e.g., interest income and/or yields from debt securities and/or money market instruments and/or dividends from equity securities. (b) Investment gains (losses), e.g., gains (losses) from securities trading transactions including unrealized gains (losses) on securities measured at Fair Value through profit or loss. Disclosed separately based on Related Parties and Third Parties; b) details of the amount from groups of main products/services; c) the name of the Party (counterparty) and the value of incoming cash flows exceeding 10% (ten percent) of Revenue; and d) in the event the Securities Company acts as an agent or principal in agency transactions, then details of the components of Net Revenue are disclosed separately, including:
(1) Gross Revenue;
(2) reduction of gross revenue; and
(3) total Net Revenue.
5) Expenses
Securities Companies are required to disclose among other things:
a) details of the type and amount of expenses; b) additional information about the nature of expenses, including depreciation and amortization expenses, and employee benefit expenses; and c) the name of the Party (counterparty) and the value of outgoing cash flows exceeding 10% (ten percent) of revenue.
6) Other Revenue and Expenses
a) Other Revenue
Securities Companies are required to disclose among other things details and amounts of Other Revenue. b) Other Expenses Securities Companies are required to disclose among other things details and amounts of other expenses.
7) Finance Costs
Securities Companies are required to disclose among other things details of the cost amount for each type of finance cost.
8) Other Comprehensive Income
Securities Companies are required to disclose details of Other Comprehensive Income including:
a) for those that will not be reclassified subsequently to profit or loss:
(1) changes in the revaluation surplus of Fixed Assets and Intangible Assets; (2) gains and losses from remeasurement of defined benefit plans; (3) the portion of Other Comprehensive Income from associates and/or joint ventures; and (4) gains and losses from investments in equity instruments designated at Fair Value through Other Comprehensive Income in accordance with SAK. b) for those that will be reclassified subsequently to profit or loss:
(1) exchange differences arising from translation of financial statements; (2) gains and losses on financial assets measured at Fair Value through Other Comprehensive Income in accordance with SAK; and (3) the effective portion of gains and losses on hedging instruments in cash flow hedges. d. Other Disclosures

Related Party Transactions
Securities Companies are required to disclose among other things:
a) All transactions or balances with Related Parties, the amount of which:
(1) exceeds Rp1,000,000,000.00 (one billion rupiah) for transactions with individuals or closest family members; and/or (2) exceeds 0.5% (zero point five percent) of the equity value on the transaction date for transactions with related entities. b) Disclosures as referred to in letter a), with the following provisions:
(1) disclosures related to transactions with individuals or closest family members include names, the nature of the relationship with the Related Party, and information about transactions and balances with the said Related Party; (2) disclosures related to transactions with related entities include the nature of the relationship with the Related Party and information regarding transactions and balances, including commitments, which are necessary to understand the potential impact of such relationships in the financial statements, at least:
(a) the amount of transactions and its percentage of total Revenue and related expenses; (b) the amount of balances and its percentage of total Assets or Liabilities, including commitments which at least include:
i. terms and conditions, including whether there is collateral, and the nature of consideration to be provided, for settlement; and
ii. details of guarantees given or received.
(c) the amount of impairment loss provisions, individual and collective impairment loss expense provisions, and write-offs of receivables related to the receivable balance amount; and (d) the reasons and basis for the formation of impairment loss provisions, if formation is carried out; (3) disclosures required as referred to in item (1) and item (2) are carried out separately for each of the following categories:
(a) parent entity;
(b) entities with Joint Control or Significant Influence over the Securities Company; (c) subsidiary entities; (d) associate entities; (e) joint ventures where the Securities Company is a joint venturer; (f) Key Management Personnel of the Securities Company or its parent entity; and (g) other Related Parties. c) Securities Companies are required to disclose all compensation given to each member or group of directors, commissioners, main shareholders who are also employees, and other key management for each of the following categories:
(1) short-term employee benefits;
(2) post-employment benefits;
(3) other long-term employee benefits;
(4) termination benefits; and
(5) share-based payments d) In the event the Securities Company is a related entity with the government, then for transactions with other related entities with the government, the Securities Company does not follow the disclosure provisions as referred to in letter b) item (2), but is required to disclose the following:
(1) the name of the related entity with the government and the nature of its relationship with the Securities Company; (2) the nature and amount of each transaction that is significant individually; and (3) for other transactions that are significant collectively, but not individually, a quantitative or qualitative indication of the extent of such transactions. In this case, such transactions are not required to be presented separately as a main component in the financial statements. e) Disclosure that Related Party transactions are conducted on terms equivalent to those prevailing in arm's length transactions, only if such statement can be proven.
Income Tax
Securities Companies are required to disclose among other things:
a) components of tax (Income) expense consisting of:
(1) current tax (Income) expense;
(2) adjustments recognized in the period for current tax arising from prior periods; (3) the amount of deferred tax (Income) expense arising from temporary differences and their reversal; (4) the amount of deferred tax (Income) expense related to changes in tax rates or the application of new tax regulations; (5) the amount of benefits arising from tax losses not recognized previously or temporary differences of a prior period used to reduce current tax expense and deferred tax expense; (6) deferred tax expense caused by the reduction or reversal of previous reductions in deferred tax assets; and (7) the amount of (Income) expense related to changes in accounting policies and errors accounted for in the profit or loss and other comprehensive income statements, because they cannot be treated retrospectively; b) aggregate current and deferred tax related to transactions charged or credited directly to equity; c) the amount of Income Tax related to each component of Other Comprehensive Income; d) explanation of the relationship between tax (Income) expense and accounting profit in the form as follows:
(1) reconciliation between tax (Income) expense and the product of accounting profit with the applicable tax rate, disclosing the basis for calculating the applicable tax rate; and/or (2) reconciliation between the effective average tax rate and the applicable tax rate, disclosing the basis for calculating the applicable tax rate; e) explanation regarding changes in the applicable tax rate and comparison with the applicable tax rate in the previous accounting period; f) the amount and time limit for use, if there is a time limit for use, of deductible temporary differences and unutilized tax losses not recognized as Deferred Tax Assets in the financial statements; g) fiscal reconciliation and calculation of current tax expense in the following manner:
(1) profit before tax according to accounting; (2) plus/deduct positive or negative corrections in detail; and (3) taxable profit. h) calculation of current tax expense and Liabilities tax by applying the tax rate in accordance with the provisions of legislation governing taxation; i) a statement that taxable profit resulting from reconciliation becomes the basis for filling out the Annual Income Tax Return (Annual SPT Badan); j) each type of temporary difference and each type of unutilized tax losses, namely:
(1) the amount of Deferred Tax Assets and Liabilities recognized in the balance sheet for the presentation period; and (2) the amount of deferred tax (Income) expense recognized in profit or loss, if the amount is not visible from the change in the amount of Deferred Tax Assets or Liabilities recognized in the balance sheet; and k) the amount of Deferred Tax Assets and the reasons or evidence supporting the recognition of Deferred Tax Assets, if:
(1) the use of Deferred Tax Assets depends on future taxable profit being greater than the profit from reversing existing taxable temporary differences; and (2) the entity experiences losses in the current or previous period resulting in the recognition of Deferred Tax Assets related thereto.
Leases
Securities Companies acting as lessees are required to disclose among other things:
a) the carrying amount of Right-of-Use Assets at the end of the reporting period based on the class of underlying Assets and lessees; b) depreciation expense for Right-of-Use Assets based on the class of underlying Assets; c) interest expense on lease liabilities; d) expenses related to short-term leases. This expense does not include expenses related to leases with a lease term of 1 month or less; e) expenses related to leases of low-value Assets. This expense does not include expenses related to short-term leases of low-value Assets; f) expenses related to variable lease payments not included in the measurement of Lease Liabilities; g) Revenue from subleasing Right-of-Use Assets; h) total cash outflows for leases; i) additions to Right-of-Use Assets; j) gains or losses arising from sale and leaseback transactions; k) significant estimates and adjustments used, including judgment at the time of determining the lease term if not in accordance with the lease contract, for example, if using proxy calculations or if there are additional periods covered in the lease agreement contract, for example, if using proxy calculations or if there are additional periods covered in the lease agreement contract; l) maturity analysis of lease liabilities; m) Future cash outflows that potentially impact the lessee which are not reflected in the measurement of lease liabilities, including impacts arising from:
(1) variable lease payments;
(2) extension options and termination options; (3) residual value guarantees; and (4) leases not yet commenced by lessees who have committed; n) restrictions or covenants arising from leases; and o) provisions related to other disclosures for lessees as regulated in SAK.
Impairment of Non-financial Assets
Securities Companies are required to disclose the following for each impairment loss recognized or reversed during a specific period for an individual Asset or a cash-generating unit, including:
a) events and conditions indicating the recognition or reversal of impairment losses; b) the amount of impairment losses recognized in profit or loss during the period and the elements of the profit or loss statement and Other Comprehensive Income in which the impairment losses are included; c) the amount of impairment losses reversed in profit or loss during the period and the elements of the profit or loss statement and Other Comprehensive Income in which the reversed impairment losses are included; d) the amount of impairment losses on revalued Assets recognized in Other Comprehensive Income during the period; e) the amount of impairment losses reversed on revalued Assets recognized in Other Comprehensive Income during the period; f) if the recoverable amount is Fair Value less costs of disposal, then the Securities Company discloses the following information:
(1) the Fair Value hierarchy level used;
(2) for Fair Value measurement in level 2 and level 3 categories of the Fair Value hierarchy:
(a) description of the valuation techniques used; (b) changes in valuation techniques and reasons, if there are changes in valuation techniques; and (c) each key assumption underlying the determination of Fair Value; g) if the recoverable amount is value in use, then the Securities Company discloses the discount rate used in current estimates and previous estimates if there are previous estimates of value in use.
Interest in Joint Ventures
Securities Companies are required to disclose among other things:
a) the aggregate amount of contingent liabilities separately from the amount of other contingent liabilities; b) the aggregate amount of capital commitments related to its interest in joint ventures separately from other commitments; c) a list and explanation of significant interests in joint ventures and ownership interests in entities under Joint Control; d) in the event joint ventures are accounted for in entities under Joint Control, additional disclosures must be added regarding:
(1) the method used to recognize its interest; and (2) the aggregate amount of each Current Asset, Non-current Asset, Short-term Liabilities, Long-term Liabilities, Income and expenses related to its interest in joint ventures.
Dividends
Securities Companies are required to disclose among other things:
a) the amount of dividends and dividends per share that have been declared and paid as distributions to owners in the reporting period; b) the amount of dividend liabilities for:
(1) the reporting period, and
(2) the previous period. c) the amount of dividends and dividends per share proposed or declared after the reporting period but before the date of completion of the financial statements and not recognized as Liabilities to owners at the end of the reporting period; d) the amount of cumulative preferred dividends not recognized; and e) the date of GMS approval in deciding the determination of cash dividends.
Financial Instruments
a) Securities Companies classify financial instruments into groups according to the nature of the information disclosed and considering the characteristics of the financial instruments. Securities Companies provide sufficient information to allow reconciliation to each line item presented in the balance sheet. b) Securities Companies disclose in the balance sheet or in the notes to the financial statements, sub-classifications of the items presented, and are classified in a manner appropriate to the business activities of the Securities Company. c) Specific disclosures related to the reclassification of Financial Assets include:
(1) In the event the Securities Company has reclassified Financial Assets either in the current reporting period or previously, then for each such event the Securities Company discloses:
(a) the date of reclassification;
(b) a detailed explanation of changes in the business model and a qualitative description of the impact of such reclassification in the entity's financial statements; and (c) the amount of reclassifications into and out of each category. (2) In the event of reclassifying Assets from the FVTPL category so that the Assets are measured at amortized cost or measured at FVTOCI, then for each reporting period after reclassification until derecognition, the Securities Company discloses:
(a) the effective interest rate determined on the date of reclassification; and (b) Interest Revenue recognized.
(3) In the event that since the last annual report, the Securities Company has reclassified Financial Assets out of the FVTOCI category into the category of Financial Assets measured at amortized cost, or out of FVTPL into Financial Assets measured at amortized cost or at FVTOCI, then the Securities Company discloses:
(a) the Fair Value of Financial Assets at the end of the reporting period; and (b) gains or losses on Fair Value that should have been recognized in profit or loss or Other Comprehensive Income during the period if the Financial Assets had not been reclassified. d) Securities Companies may transfer Financial Assets such that part or all of the transferred Financial Assets do not qualify for derecognition. Securities Companies disclose at each reporting date for each class of transferred Financial Assets that are not derecognized in their entirety:
(1) the nature of the transferred Assets;
(2) the nature of the risks and benefits of ownership to which the Securities Company is exposed; (3) a description of the nature of the relationship between the transferred Assets and the related Liabilities, including restrictions arising from the transfer regarding the use of the transferred Assets by the Securities Company; (4) when the counterparty to the related Liabilities only has the transferred Assets as an alternative, a schedule establishing the Fair Value of the transferred Assets, the Fair Value of the related Liabilities, and the net position (difference between the Fair Value of the transferred Assets and the related Liabilities); (5) when the Securities Company continues to recognize all transferred Assets, the carrying amount of the transferred Assets and the related Liabilities; and (6) when the Securities Company continues to recognize Assets to the extent of continuing involvement, the carrying amount of Assets continuing to be recognized by the entity and the carrying amount of the related Liabilities. e) Securities Companies are required to disclose:
(1) the carrying amount of Financial Assets pledged as collateral for Liabilities or contingent Liabilities, including the amount that has been reclassified; and (2) the terms and conditions related to such collateral. f) When the Securities Company has collateral (Financial Assets or Non-financial Assets) and is allowed to sell or re-pledge without prior default by the owner of the collateral, then the Securities Company discloses:
(1) the Fair Value of the collateral owned;
(2) the Fair Value of any collateral sold or re-pledged, and whether the Securities Company is obligated to return the collateral; and (3) the terms and conditions related to the use of such collateral.
Fair Value of Financial Instruments
Securities Companies are required to disclose for each class of Financial Assets and Financial Liabilities, including:
a) the Fair Value of each class of Financial Assets and Liabilities and the type of Securities in a manner that allows comparison with their carrying amounts; b) significant methods and assumptions used in determining the Fair Value of Financial Assets and Liabilities and the reasons and impacts if there are changes in significant methods and assumptions used; c) the Fair Value hierarchy level for each class of Financial Assets and Liabilities and the type of Securities; d) the amount of any transfers between level 1 and level 2 in the Fair Value hierarchy, the reasons for such transfers, and the entity's policy for determining when transfers between levels are considered to have occurred; e) for Fair Value measurement of level 2 and level 3, descriptions of valuation techniques and inputs used in Fair Value measurement; f) for Fair Value measurement of level 3, reconciliation from opening balance to closing balance; and g) in the event the Securities Company does not recognize gains or losses on initial recognition of Financial Assets or Financial Liabilities when Fair Value cannot be evidenced by quoted prices in active markets (level 1 inputs), or based on valuation techniques that only use data from observable markets, then the Securities Company discloses the following:
(1) accounting policy in recognizing in profit or loss the difference between Fair Value at initial recognition and transaction price to reflect changes in factors (including time) that market participants would consider when determining the price of Assets or Liabilities; (2) the aggregate difference not yet recognized in profit or loss at the beginning and end; (3) the period of reconciliation of changes in the balance of such differences; and (4) the reasons for the entity's conclusion that the transaction price is not the best evidence of Fair Value, including a description of evidence supporting Fair Value.
Financial Risk Management
a) Securities Companies are required to disclose information that enables users of the financial statements to evaluate the nature and scope of risks arising from financial instruments to which the entity is exposed at the end of the reporting period, as well as risk management policies, including but not limited to risks as follows:
(1) Credit Risk

Credit risk includes, among others, the analysis of the aging of financial assets that are not yet past due or have not experienced a significant decrease in value, and those that are past due at the end of the reporting period but have not experienced a significant decrease in value; (2) Liquidity risk, including:
(a) maturity analysis for derivative and non-derivative financial liabilities showing the remaining contractual maturities, intended to understand the timing of cash flows; and (b) a description of how the Securities Company manages liquidity risk. (3) Market risk, including:
(a) sensitivity analysis for each type of market risk to which the Securities Company is exposed at the end of the reporting period, showing how profit or loss and equity are affected by possible changes in relevant risk variables on that date; and (b) the methods and assumptions used in preparing the sensitivity analysis; and (c) changes in methods and assumptions used previously. (4) Other risks held by the Securities Company. b) Disclosures as referred to in letter a) consist of qualitative and quantitative disclosures for each type of risk arising from financial instruments. Qualitative disclosure in the context of quantitative disclosure enables users of financial statements to connect related disclosures, so that users of financial statements can understand the overall picture regarding the nature and scope of risks arising from financial instruments. The interaction between qualitative and quantitative disclosure results in the disclosure of information in a manner that enables users of financial statements to evaluate the entity's risk exposure better.

Capital Management
Securities Companies are required to disclose, among others:
a) qualitative information about the objectives, policies, and processes of the Securities Company in managing its capital, including:
(1) a description of the parts managed as capital; (2) the nature of requirements and their implementation regarding the Securities Company being required to meet capital requirements stipulated by external parties; and (3) how the Securities Company meets its objectives in managing its capital. b) a summary of quantitative data about the parts managed as capital; c) any changes in letters a) and b) from previous periods; d) a statement of compliance with any capital requirements from external parties (if any); and e) the consequences of non-compliance with capital requirements from external parties, if non-compliance occurs.
Non-Cash Transactions
a) Securities Companies are required to disclose investment and financing activities that do not require the use of cash and are not included in the statement of cash flows. b) Transactions that do not affect cash flows include, among others, the acquisition of Assets on credit or through leasing.
Commitments and Contingencies
a) Commitments
Securities Companies are required to disclose, among others:
(1) commitments including:
(a) lease, agency and distribution, management and technical assistance, royalty, and license agreements, disclosed:
i. The Parties involved in the agreement;
ii. the period of validity of the commitment;
iii. the basis for determining compensation and penalties;
iv. the amount of expenses or Revenue in the reporting period; and
v. other restrictions;
(b) contracts or agreements that require the use of funds in the future:
i. The Parties involved in the agreement;
ii. the period of validity of the commitment;
iii. the total value, currency, and portion that has been realized; and
iv. sanctions;
(2) provision of guarantees or warranties:
(a) the guaranteed Parties and the recipients of the guarantee, separated between Related Parties and third parties for the guaranteed Party; (b) the background for the issuance of the guarantee; (c) the period of validity of the guarantee; and (d) the value of the guarantee;

(3) unused credit facilities, such as L/C facilities, bank overdrafts; and (4) a description of the nature, type, amount, and limitations. b) Contingencies Securities Companies are required to disclose, among others:
(1) legal cases or disputes, disclosed:
(a) the Parties involved;
(b) the amount in dispute;
(c) the background, content, and status of the case and legal opinion; and (d) financial impact; (2) government regulations impacting the Securities Company, such as environmental issues, disclosed with a brief description of the regulation and an estimate of its financial impact; (3) possibility of additional tax liabilities:
(a) the type of tax assessment or bill, type of tax, tax year, and the principal amount and penalties or interest; and (b) the Securities Company's stance towards the tax assessment or bill (objection or appeal); (4) other contingent events, disclosed including:
(a) characteristics of contingent Assets or Liabilities; (b) estimates of their financial impact measured using best estimates, risk and uncertainty, present value, and future events. Contingent Liabilities related to underwriting full commitment securities offerings are measured using the best estimate of the commitment to purchase the remaining unsold offered shares at the initial public offering price; (c) indications of uncertainty related to the amount or timing of outflow of resources; and (d) the possibility of reimbursement by third parties.

Share-Based Payment
Securities Companies are required to disclose, among others:
a) details of the amount of Liabilities for share-based payments, both short-term and long-term; b) an explanation of each type of share-based payment agreement existing in a period, including general terms and conditions of each agreement, such as vesting conditions, maximum duration of options granted, and settlement methods; c) the number and weighted average exercise price of stock options for each group of stock options; d) for stock options exercised during the period, the weighted average share price on the exercise date or during the reporting period; e) the range of exercise prices and weighted average remaining contractual life for stock options outstanding at the end of the period; f) determination of Fair Value by disclosing at least the following:
(1) options granted during a period, the weighted average Fair Value of those options on the measurement date, and information about how that Fair Value was measured; and (2) the number and weighted average Fair Value of the equity instruments on the measurement date, and information about the measurement of that Fair Value for other equity instruments granted during a period (i.e., other than stock options); and g) the impact of share-based payment transactions on the Securities Company's profit or loss in a period and on its financial position.
Changes in Accounting Estimates, Changes in Accounting Policies, and Errors
a) Changes in Accounting Estimates
Securities Companies are required to disclose, among others:
(1) the nature and reason for the change in accounting estimates and a reconciliation of the impact of the change in the related account estimates; (2) the amount of the change in estimate affecting the current period; and (3) the estimated impact of the estimate on future periods, provided that if the amount of the impact of the estimate on future periods is impracticable, this fact must be disclosed. b) Changes in Accounting Policies Securities Companies are required to disclose, among others:
(1) the nature of the change in accounting policy; (2) the reason why applying the new accounting policy provides reliable and more relevant information; (3) the amount of adjustment for each financial statement line item affected for the current period and each prior period presented; (4) the amount of adjustment related to periods before the period presented. If impracticable, the reason must be disclosed; and (5) the circumstances making retrospective application impracticable for a specific period or for periods before the period presented, and the date the change in accounting policy began. c) Errors Securities Companies are required to disclose, among others:
(1) the nature of prior period errors;
(2) the amount of correction for each presented period for each financial statement line item affected; (3) the amount of correction at the beginning of the earliest presented period; and (4) the circumstances making retrospective application impracticable and an explanation of the method and timing of the correction if retrospective restatement is impracticable.
Other Material Information
Securities Companies are required to disclose other material information, including the nature, type, amount, and impact of specific events or circumstances that may affect the performance of the Securities Company.
Events After the Reporting Period
Securities Companies are required to disclose events after the reporting period, including:
a) if the Securities Company receives information after the reporting period about conditions existing at the end of the reporting period, the Securities Company updates the disclosure of those conditions according to the latest information; and b) if there are material non-adjusting events after the reporting period, the Securities Company discloses a description of the event, for example:
(1) the date of occurrence;
(2) the nature of the event; and

(3) an estimate of the financial impact, or a statement and reason that such an estimate cannot be made.

Latest Developments in Accounting Standards and Regulations Related to Securities Company Activities
If a Securities Company has not yet applied an Accounting Standard (SAK) and/or regulation related to the Securities Company's activities, which has been issued but is not yet effective, the Securities Company discloses, among others:
a) the title of the SAK and related regulation; b) the nature of the change that is not yet effective or the change in accounting policy; c) the date of application of the SAK and regulation as required; and d) a discussion of the impact of the initial application of the SAK and regulation on the financial statements or a statement that the impact cannot be known or reasonably estimated.
Reclassification
a) If a Securities Company changes the presentation or classification of items in its financial statements, the Securities Company is required to disclose, among others:
(1) the nature of the reclassification;
(2) the amount of each item or class of items reclassified; and (3) the reason for the reclassification. b) If reclassifying comparative amounts is impracticable, the Securities Company is required to disclose:
(1) the reason for not reclassifying the amounts; and (2) the nature of the adjustment that will be made if the amounts are reclassified.
Investment Entities
a) If a Securities Company becomes an Investment Entity or ceases to be an Investment Entity, the Securities Company discloses the change in Investment Entity status and the reason for the change. b) If a Securities Company becomes an Investment Entity, the Securities Company is required to disclose, among others:
(1) the impact of the status change in the financial statements for the period presented; (2) the Fair Value of the subsidiary entity ceasing to be consolidated, on the date of the status change; (3) the amount of profit or loss, if there is a profit or loss; and (4) the line item in profit or loss when the profit or loss is recognized, if not presented separately. c) For each subsidiary entity not consolidated, the Securities Company as an Investment Entity is required to disclose, among others:
(1) the name of the subsidiary entity;
(2) the main location of the subsidiary entity's business activities and the country of incorporation if different from the main location of the subsidiary entity's business activities; and (3) the proportion of ownership interest held by the Investment Entity and, if different, the proportion of voting rights held; and (4) if the subsidiary entity is an investment product in the form of a Collective Investment Contract, disclose items (1), (2), (3) and the Effective Letter of Registration Statement and/or Recording Letter for the investment product in the form of a Collective Investment Contract, as well as the ownership value.
Special Disclosures for Securities Companies that are Issuers and Public Companies
a) Basic and Diluted Earnings Per Share
Securities Companies that are Issuers and Public Companies are required to disclose, among others:
(1) the amount used as the numerator in the calculation of basic and diluted earnings per share, and a reconciliation of that amount to the profit or loss attributable to the parent entity for that period. The reconciliation includes the individual impact of each type of instrument affecting earnings per share; (2) the weighted average number of ordinary shares used as the denominator in the calculation of basic and diluted earnings per share, and a reconciliation of the denominator. The reconciliation includes the individual impact of each type of instrument affecting earnings per share; (3) instruments (including contingently issuable shares) that have the potential to dilute basic earnings per share in the future, but are not included in the calculation of diluted earnings per share because the instruments are antidilutive for the presented period; (4) an explanation of ordinary share transactions or transactions in potentially ordinary share instruments, other than those calculated in accordance with applicable SAK, that occurred after the reporting period and will significantly change the number of ordinary shares or potentially ordinary share instruments outstanding at the end of that period had the transaction occurred before the end of the reporting period; and (5) basic and diluted earnings per share for discontinued operations. b) Operating Segments Securities Companies that are Issuers and Public Companies are required to disclose, among others:
(1) disclosure at the segment level
(a) general information, consisting of:
i. factors used by management to identify the reported segment; and
ii. the type of products and services generating revenue from each reported segment;
(b) information regarding segment profit or loss, including specific revenues and expenses, segment Assets, and segment Liabilities of the reported segment, and the basis of their measurement; and (c) a reconciliation of total segment revenue, the measure of segment profit or loss reported, segment Assets, segment Liabilities, and other material segment items to the amounts related in the Securities Company's financial statements. (2) disclosure at the entity level (a) Product and Service Information Revenue from external customers for each product and service or each group of similar products and services. (b) Geographic Information
i. Revenue from external customers attributed to:
(i) the country of domicile of the Securities Company; and (ii) all foreign countries in total where the Securities Company obtains revenue. If revenue from a foreign country individually is material, that revenue is disclosed separately, including the basis for attributing the revenue to that country individually.
ii. Non-current Assets other than financial instruments, Deferred Tax Assets, Post-employment Benefit Assets, and rights arising from insurance contracts located in:
(i) the country of domicile of the Securities Company; and (ii) all foreign countries in total where the Securities Company has Assets. If Assets from a foreign country individually are material, those Assets are disclosed separately. (c) Major Customer Information If revenue from transactions with a single external customer reaches 10% (ten percent) or more of consolidated revenue, the Securities Company must disclose:
i. the fact;

ii. total revenue from each customer; and
iii. the identity of the segment reporting that revenue.
c) Errors
Securities Companies that are Issuers and Public Companies disclose errors as part of the disclosure of Changes in Accounting Estimates, Changes in Accounting Policies, and related Errors, namely the amount of correction for each presented period for basic and diluted earnings per share. d) Reconciliation between SAK and Accounting Standards in Other Countries (1) This provision applies to Securities Companies that are Issuers or Public Companies preparing financial statements using accounting standards other than SAK to meet the requirements of capital market authorities in other countries or for the purpose of offering Securities in other countries. (2) Securities Companies that are Issuers and Public Companies are required to disclose, among others:
(a) a summary of differences between SAK and accounting standards in other countries; (b) a reconciliation of different line items for the statement of financial position along with explanations; and (c) a reconciliation of different line items for the statement of comprehensive income along with explanations. (3) If Securities Companies that are Issuers and Public Companies are required by capital market authorities in other countries to make additional disclosures following the regulations in that country, such disclosures must be added to the financial statements.

PT SECURITIES COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 20X9
(In thousands of Rupiah, unless otherwise stated) Notes to the financial statements attached form an integral part of the financial statements as a whole.
(1) 20X9 20X8
Note
ASSETS
Cash and Cash Equivalents xx.xxx.xxx xx.xxx.xxx Restricted Cash and Cash Equivalents xx.xxx.xxx xx.xxx.xxx Time Deposits xx.xxx.xxx xx.xxx.xxx Securities Portfolio xx.xxx.xxx xx.xxx.xxx Securities Portfolio Transferred xx.xxx.xxx xx.xxx.xxx Trade Receivables Third Parties xx.xxx.xxx xx.xxx.xxx Related Parties xx.xxx.xxx xx.xxx.xxx Receivables from Intermediary Broker Transactions Third Parties xx.xxx.xxx xx.xxx.xxx Related Parties xx.xxx.xxx xx.xxx.xxx Receivables from Underwriting Transactions Third Parties xx.xxx.xxx xx.xxx.xxx Related Parties xx.xxx.xxx xx.xxx.xxx Receivables from Investment Management Transactions Third Parties xx.xxx.xxx xx.xxx.xxx Related Parties xx.xxx.xxx xx.xxx.xxx Repo Transaction Receivables xx.xxx.xxx xx.xxx.xxx Other Receivables xx.xxx.xxx xx.xxx.xxx Prepaid Expenses xx.xxx.xxx xx.xxx.xxx Prepaid Taxes xx.xxx.xxx xx.xxx.xxx Investments in Associate Entities xx.xxx.xxx xx.xxx.xxx Intangible Assets xx.xxx.xxx xx.xxx.xxx Right-of-Use Assets xx.xxx.xxx xx.xxx.xxx Fixed Assets xx.xxx.xxx xx.xxx.xxx Deferred Tax Assets xx.xxx.xxx xx.xxx.xxx Other Assets xx.xxx.xxx xx.xxx.xxx TOTAL ASSETS xx.xxx.xxx xx.xxx.xxx

PT SECURITIES COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 20X9
(In thousands of Rupiah, unless otherwise stated) Notes to the financial statements attached form an integral part of the financial statements as a whole.
20X9 20X8
Note
LIABILITIES
Trade Payables
Third Parties xx.xxx.xxx xx.xxx.xxx
Related Parties xx.xxx.xxx xx.xxx.xxx
Payables from Intermediary Broker Transactions Third Parties xx.xxx.xxx xx.xxx.xxx Related Parties xx.xxx.xxx xx.xxx.xxx Payables from Underwriting Transactions Third Parties xx.xxx.xxx xx.xxx.xxx Related Parties xx.xxx.xxx xx.xxx.xxx Payables from Investment Management Transactions Third Parties xx.xxx.xxx xx.xxx.xxx Related Parties xx.xxx.xxx xx.xxx.xxx Repo Transaction Payables xx.xxx.xxx xx.xxx.xxx Tax Payables xx.xxx.xxx xx.xxx.xxx Accrued Expenses xx.xxx.xxx xx.xxx.xxx Short-term Payables xx.xxx.xxx xx.xxx.xxx Deferred Tax Liabilities xx.xxx.xxx xx.xxx.xxx Long-term Payables xx.xxx.xxx xx.xxx.xxx Long-term debt securities xx.xxx.xxx xx.xxx.xxx Lease Payables xx.xxx.xxx xx.xxx.xxx Employee Benefit Liabilities xx.xxx.xxx xx.xxx.xxx Subordinated Payables xx.xxx.xxx xx.xxx.xxx Convertible Bonds xx.xxx.xxx xx.xxx.xxx Other Payables xx.xxx.xxx xx.xxx.xxx TOTAL LIABILITIES xx.xxx.xxx xx.xxx.xxx EQUITY xx.xxx.xxx xx.xxx.xxx Equity attributable to owners of the parent entity Share Capital xx.xxx.xxx xx.xxx.xxx Additional Paid-in Capital xx.xxx.xxx xx.xxx.xxx Transaction Differences with Non-controlling Interests xx.xxx.xxx xx.xxx.xxx

PT. SECURITIES COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the Year Ended December 31, 20X9 (In thousands of Rupiah, unless otherwise stated) Notes to the financial statements attached form an integral part of the financial statements as a whole. 20X9 20X8 Note REVENUE xx.xxx.xxx xx.xxx.xxx EXPENSES (xx.xxx.xxx) (xx.xxx.xxx) GROSS PROFIT xx.xxx.xxx xx.xxx.xxx Other Income xx.xxx.xxx xx.xxx.xxx Other Expenses (xx.xxx.xxx) (xx.xxx.xxx) Finance Costs (xx.xxx.xxx) (xx.xxx.xxx) PROFIT (LOSS) BEFORE TAX xx.xxx.xxx xx.xxx.xxx Tax Expense (Income) (xx.xxx.xxx) (xx.xxx.xxx) PROFIT (LOSS) FOR THE PERIOD xx.xxx.xxx xx.xxx.xxx Other Comprehensive Income That will not be reclassified subsequently to profit or loss xx.xxx.xxx xx.xxx.xxx That will be reclassified subsequently to profit or loss xx.xxx.xxx xx.xxx.xxx Income tax related to other comprehensive income (xx.xxx.xxx) (xx.xxx.xxx) TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX xx.xxx.xxx xx.xxx.xxx TOTAL COMPREHENSIVE INCOME FOR THE PERIOD xx.xxx.xxx xx.xxx.xxx PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE TO Owners of the parent entity xx.xxx.xxx xx.xxx.xxx Non-controlling interests xx.xxx.xxx TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO:
Owners of the parent entity xx.xxx.xxx xx.xxx.xxx Non-controlling interests xx.xxx.xxx BASIC AND DILUTED EARNINGS PER SHARE (in Rupiah) x,xx x,xx

Notes to the financial statements attached form an integral part of the financial statements as a whole.
PT. SECURITIES COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended December 31, 20X9
(In thousands of Rupiah, unless otherwise stated) Note Share Capital Retained Earnings*) Additional Paid-in Capital Transaction Differences Non-controlling Interests Treasury Shares Other Comprehensive Income Total Non-controlling Interests Total Equity Designated Undesignated That will not be reclassified subsequently to profit or loss That will be reclassified subsequently to profit or loss Total Balance as of January 1, 20X8 xx.xxx (xx.xxx) xx.xxx Changes in Accounting Policy

- xx.xxx - - - - - - xx.xxx
  Restated
  Balance xx.xxx (xx.xxx) xx.xxx xx.xxx xx.xxxxx.xxx Changes equity in year 20X8 - Net profit (loss) for the period
xx.xxx xx.xxx - - - - - - xx.xxx

The attached notes to the financial statements are an integral part of the financial statements as a whole.

Dividends

- (xx.xxx) - - - - - - xx.xxx -
  xx.xx x
  Other comprehensive income
xx.xxx xx.xxx - - - xx.xxx

Balance as of December 31, 20X8 xx.xxx (xx.xxx) xx.xxx xx.xxx xx.xxxxx.xxx

Changes in equity in 20X9

Net profit (loss) for the current period

xx.xxx xx.xxx - - -

xx.xxx
Dividends - - (xx.xxx) - - - - - - xx.xxx - xx.xxx Other comprehensive income

- - - - xx.xxx

Balance as of December 31, 20X9 xx.xxx xx.xxxxx.xxx *) Retained earnings include actuarial gains and losses.

PT. PERUSAHAAN EFEK DAN ANAK PERUSAHAAN
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 20X9
(In thousands of Rupiah, unless otherwise stated) The attached notes to the financial statements are an integral part of the financial statements as a whole.

20X9 20X8
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Commission receipts xx.xxx.xxx xx.xxx.xxx
Interest income receipts xx.xxx.xxx xx.xxx.xxx Receipts from traded securities xx.xxx.xxx xx.xxx.xxx Net receipts from clients xx.xxx.xxx xx.xxx.xxx Net receipts from clearing and guarantee institutions xx.xxx.xxx xx.xxx.xxx Net payments to PE xx.xxx.xxx xx.xxx.xxx Net receipts from (payments to) Margin clients xx.xxx.xxx xx.xxx.xxx Net sale of securities portfolio xx.xxx.xxx xx.xxx.xxx Payments to suppliers and employees (xx.xxx.xxx) (xx.xxx.xxx) Income tax payments (xx.xxx.xxx) (xx.xxx.xxx) Net other receipts (payments) xx.xxx.xxx xx.xxx.xxx Net cash flows from (for) operating activities xx.xxx.xxx xx.xxx.xxx

CASH FLOWS FROM INVESTING ACTIVITIES
Interest receipts xx.xxx.xxx xx.xxx.xxx
Maturity of time deposits xx.xxx.xxx xx.xxx.xxx Proceeds from sale of fixed assets xx.xxx.xxx xx.xxx.xxx Placement of time deposits (xx.xxx.xxx) (xx.xxx.xxx) Acquisition of fixed assets (xx.xxx.xxx) (xx.xxx.xxx) Net cash flows from (for) investing activities xx.xxx.xxx xx.xxx.xxx

CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of share capital xx.xxx.xxx xx.xxx.xxx Issuance of short-term debt xx.xxx.xxx xx.xxx.xxx Repayment of short-term debt xx.xxx.xxx xx.xxx.xxx Bank loan receipts xx.xxx.xxx xx.xxx.xxx Bank loan payments (xx.xxx.xxx) (xx.xxx.xxx) Interest payments (xx.xxx.xxx) (xx.xxx.xxx)

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

Net cash flows from (for) financing activities xx.xxx.xxx xx.xxx.xxx Net increase (decrease) in cash and cash equivalents xx.xxx.xxx xx.xxx.xxx Cash and cash equivalents at the beginning of the period xx.xxx.xxx xx.xxx.xxx Cash and cash equivalents at the end of the period xx.xxx.xxx xx.xxx.xxx

Determined in Jakarta on October 13, 2021
CHIEF EXECUTIVE OF THE CAPITAL MARKET SUPERVISOR FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed HOESEN

Guidelines on Accounting Treatment for Securities Companies

Changes in equity in 20X9

Lineage: Amended

Timeline