SEOJK on Accounting Treatment for Leased Telecommunication Tower Assets

Issuer...
To:
Directors of Issuers and Public Companies at their offices.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 27/SEOJK.04/2015 CONCERNING ACCOUNTING TREATMENT FOR LEASED TELECOMMUNICATION TOWER ASSETS

In connection with Regulation Number VIII.G.7, Appendix of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Decision Number: KEP-347/BL/2012 dated June 25, 2012 concerning the Presentation and Disclosure of Financial Statements of Issuers or Public Companies, together with Article 69 paragraph (2) of Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608), and in order to establish guidelines for accounting treatment for leased telecommunication tower assets, it is necessary to regulate provisions regarding the accounting treatment for leased telecommunication tower assets in this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

1. Based on legislation in the Capital Market sector, it is regulated that Issuers or Public Companies have the obligation to submit financial reports to the Financial Services Authority prepared in accordance with Financial Accounting Standards.
2. Financial Accounting Standards, hereinafter referred to as SAK, are Statements and Interpretations issued by the Accounting Standards Board (DSAK) of the Indonesian Institute of Accountants (IAI) as well as capital market regulator regulations for entities under its supervision.
3. There are differences in accounting treatment for leased telecommunication tower assets of Issuers or Public Companies and/or their subsidiaries, so that the financial reports of such Issuers or Public Companies cannot be compared.
4. Issuers or Public Companies may only change an accounting policy if the change:

1. is required by a SAK;
2. is mandated by legislation; or
3. results in financial reports that provide reliable and more relevant information about the impact of transactions, events, or other conditions on the entity's financial position, financial performance, or cash flows.

II. ACCOUNTING TREATMENT FOR TELECOMMUNICATION TOWER ASSETS
Leased telecommunication tower assets of Issuers or Public Companies and/or their subsidiaries must be recognized as Investment Property.

III. CLOSING
The provisions in this Financial Services Authority Circular shall take effect for the preparation of financial reports for periods ending on and after December 31, 2015.

Determined in Jakarta on September 1, 2015
EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR, signed
NURHAIDA

Copy matches the original
Legal Director 1
Legal Department signed
Sudarmaji