Quasi Reorganisation

Quasi Reorganisation requirements from Indonesian regulator point of view:

1. Coys must have suffered from negative retained earnings for 3 consecutive years in material amount
2. Have good liquidity and business prospects
3. Deficit must be totally zero - not just reducing the deficit
4. Should not resulted in positive retained earning.
5. Tax implication after the quasi organization and whether needs approval from DGT
6. Depreciation Effect
6. The asset revaluation still needs to be conducted if the revaluation results in lower asset value
7. Priority for accounts to be netted off -
a. General Reserve, b. Specific Reserve, c. Revaluation Reserve d. Effect of Translation e. reducing the nominal share price to reduce Share Capital (if all of these not fully netted off - then no quasi reorganisation)

From PSAK no. 51