Fixed Assets IKHTISAR KEBIJAKAN AKUNTANSI SIGNIFIKAN a. Pernyataan Kepatuhan

473 PT KERETA API INDONESIA PERSERO DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Untuk Tahun-Tahun Yang Berakhir 31 Desember 2013 dan 2012 Disajikan dalam Rupiah penuh, kecuali dinyatakan lain PT KERETA API INDONESIA PERSERO AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2013 and 2012 Expressed in full of Rupiah, unless otherwise stated With the application of PSAK 16 Revised 2007, Fixed Assets. Companies and subsidiaries using the cost method is applied consistently to all fixed assets in the same group.

k. Investment Properties

Investment property is property land or a building or part of a building or both to rental produce or to increase the value or both. Investment property valued at cost and depreciated over their useful lives in accordance with.

l. Construction in Progress

The accumulated cost of construction or rehabilitation of buildings, trains, wagons, machinery installation and other costs capitalized by the Company in account Construction in Progress. Costs related with the construction in progress is classified according to its purpose as needed. Cost for inventory making is classified as Inventory. Cost related to manufacture of fixed assets is classified as Fixed Asset. Uncapitalised Cost is expensed during of the year.

M. Impairment of Assets

The Company adopted PSAK No. 48 on Impairment of Assets which requires that the amount of assets that can be recovered when events or changes indicate that the carrying value may not be recoverable. Impairment of assets recognized as a loss in the income statement for the year. Events that indicated a decline in the value of assets include: 1 There is evidence of obsolescence or physical damage to assets; 2 Significant changes which adversely impact with respect to how far, or how, the asset is used or expected to be used; 3 There is evidence from internal reporting indicates that the asset’s economic performance is worse, or will be worse than expected; Events that indicated a decline in the value of assets include: 1 Inventory 2 Assets arising from construction contracts; Dengan penerapan PSAK 16 Revisi 2007, Aset Tetap. Perusahaan