PSAK 16 : FIXED ASSETS

Fixed assets are tangible assets intended for use in the production or supply of goods or
services, to be directed to other parties, or for administrative purposes and are expected to be used
for more than one period. The cost of fixed assets is recognized as an asset if: (1) it is likely that
the entity will gain future economic benefits from the asset, and (2) its cost can be measured
reliably.

Fixed assets that qualify for recognition as assets are measured at deemed cost. Fixed asset
acquisition costs include: their acquisition cost (including import duties and purchase taxes that
can not be credited after deducting discounts and other deductions), any charge that carries the
asset to the site under desired conditions, the initial estimate of the cost of dismantling and
removing fixed assets and restoring the location of fixed assets. Acknowledgment of costs in the
carrying amount of fixed assets is discontinued when the fixed assets are in the location and
conditions necessary for the assets to be used in accordance with the management intention. The
cost of development and usage of assets is not included in the carrying amount of assets. The cost
of the assets of the exchange is measured at fair value. If the acquired asset is not measured at fair
value, its cost is measured at the carrying amount of the asset.

The measurement after asset recognition is made by two methods, namely cost method
(fixed assets are recorded at cost less accumulated depreciation and accumulated impairment
losses) or revaluation method (assets are recorded at fair value on the date of revaluation less
accumulated depreciation and accumulated impairment losses). If the carrying amount of the asset
increases as a result of the revaluation, then the increase is recognized in other comprehensive
income and accumulates in equity in the revaluation surplus section. If the carrying amount of the
asset decreases as a result of the revaluation, the decrease is recognized in profit or loss.

Any portion of a fixed asset that has a significant cost to the total cost of all assets remains
depreciated separately. Depreciation is not discontinued when the asset is not used or terminated,
unless it has been fully depreciated or sold. The depreciation method applied for an asset is
reviewed at least at the end of each financial year and, if there is a significant change in the
expected usage pattern for future economic benefits of the asset, the depreciation method is
changed to reflect the change in the pattern.

For the termination of fixed asset recognition, fixed assets will be derecognized at the time
of disposal or when no future economic benefits are expected from their use or disposal. Gains or
losses arising from the derecognition of fixed assets are included in the profit and loss when such
fixed assets are derecognized. Gains or losses arising from the derecognition of fixed assets are
determined at the difference between the net disposal amount, if any, and their carrying amount.