Disclosure entity.

D. Disclosure entity.

Required. ITEM

Provisions for terminating or

Required, subject to meeting

Required.

IFRS

Indonesian GAAP

US GAAP

reducing activities of acquiree

IAS 37 recognition criteria.

Not required, but instead pro- Names and descriptions of the

General

Effect of acquisition on the

Required unless impracticable. Not specified.

forma income statement combining entities

Required.

Required.

Required. Also disclose the

financial position at the

reasons for the business

balance sheet date and on the

information is presented (see

below). The effective date of the

combination.

results since the acquisition

Required. combination for accounting

Amount of purchased research

Not applicable.

Not applicable.

and development assets

purposes

acquired and written off in the period

The cost of acquisition and the

Required.

Required.

Required. Also disclose the

form of the consideration

Required. given, including any deferred

basis for determining the value

If the purchase price had not

Not specified.

Not specified.

of shares given as

been finalised, disclose that

and contingent consideration

consideration. Disclose

fact and the reasons. In

accounting treatment to be

subsequent periods,

followed should contingent

adjustments made to the initial

consideration be realised.

allocations must be disclosed

Operations to be disposed of

Details of amounts allocated to

Required.

Not specified.

Required.

intangible assets including

The % of voting shares

total amounts,

Goodwill

amortisable/non-amortisable, residual values and

Goodwill – impairment charge

amortisation period by assets

Total amount of goodwill –

Not specified.

Not specified.

Required.

amount expected to be tax deductible – the amount of goodwill by reportable segment

D. Disclosure (continued)

F. Common control transactions

There are two basic method of accounting for business combinations - the purchase method and the ITEM

IFRS

pooling-of-interests method. IFRS does not require or prohibit the application of either method. Other financial disclosures (continued)

IFRS

Indonesian GAAP

US GAAP

Management can therefore elect to apply purchase accounting or the pooling-of-interests method to

a transaction among entities under common control. Once selected, the accounting policy can be Pro-forma income statement

changed only when the criteria in IAS 8 are met. Related-party disclosures are used to explain the including comparatives

Not required; however, the

Not required.

Required only for public

revenue and profit or loss for

entities.

impact of transactions with related parties on the financial statements.

the period should be disclosed as though the acquisition date

Indo GAAP Business combination of entities under common control is recorded as if using the pooling-of-

had been the beginning of that

interest method. Any difference between the transfer price and the book value is recorded under the

period, unless impracticable.

account “Difference in Value from Restructuring Transactions of Entities under Common Control” and presented as a component of the equity section.

For a series of individually

Required.

Not required.

Required.

Specific rules exist for accounting for combinations of entities under common control. Such combinations that are material

immaterial business

US GAAP

transactions are generally recorded at predecessor cost, reflecting the transferor’s carrying amount in the aggregate:

of the assets and liabilities transferred. The use of predecessor values or fair values depends on a number of individual criteria.

• the number of entities and brief description

• the aggregate cost, the number of entity interests

G. Purchase and sale of non-controlling interest

issued or issuable and

Does not specifically address such transactions. Entities must develop and consistently apply an value accounting policy either based on the economic entity concept or the parent company approach.

IFRS

• the aggregate amount of Indo GAAP Does not specifically address such transactions. Approach that similar to that of IFRS may apply. any contingent payments

options or commitments

US GAAP

The acquisitions of some or all of the non-controlling interest in a subsidiary should be accounted for using the purchase method. A gain from the reduction of an interest in a subsidiary may be recognised for a public offering only if the transaction is not part of a group re-organisation.