Accounting standard introduced for forest management<\/p>\n
JAKARTA (JP): The draft of an accounting standard specially
\ndesigned for forest concessionaires has been introduced to
\nbusinessmen to supplement the general principles of accounting
\nwhich have been applied by the Association of Indonesian
\nAccountants (IAI).<\/p>\n
During a public hearing introducing the draft here yesterday,
\nMinister of Forestry Djamaloedin Soeryohadikoesoemo said the
\nSpecial Accounting Standard for Forest Management (SASFM) was
\ndesigned to ensure that forest-concession holders manage their
\nforests in an ecologically responsible manner and to help the
\nministry assess the company's financial condition and
\nobligations.<\/p>\n
\"The absence of a standard accounting system in forest
\nmanagement has resulted in a variety of methods to calculate a
\ncompany's economic rent. The government has also experienced
\ndifficulty in assessing a company's fulfillment of its financial
\nand environmental obligations,\" Djamaloedin said.<\/p>\n
According to him, a forest concessionaire's financial report
\ncurrently does not clearly show whether it has fulfilled various
\nobligations to the government, such as paying production and
\nreforestation fees, presenting an asset valuation report and an
\nenvironmental impact analysis.<\/p>\n
According to the Director General of Forest Management
\nHendarsun Suryasanusiputra, the draft of SASFM was formulated by
\na joint team of the Ministry of Forestry, the IAI and the Faculty
\nof Economics at the University of Indonesia.<\/p>\n
The team started its work in February last year and the draft
\nwas presented to a steering committee in October.<\/p>\n
\"SASFM and two other adjoining principles, which are the
\nGuidelines for Financial Reporting and the Guideline for
\nFinancial Control, are expected to be completed by the end of
\nthis year,\" he said.<\/p>\n
Improvement<\/p>\n
Hendarsun said the public hearing was intended to collect
\ninput for the draft's improvement.<\/p>\n
\"After the draft of SASFM has been passed and implemented, the
\nteam can start working on the other two principles,\" he said.<\/p>\n
Despite the implementation of SASFM in the near future, the
\ngeneral principles of accounting will still be applied.<\/p>\n
Under SASFM, forest concessionaire holders are required to
\nspecify their activities and expenditures in implementing the
\nselective logging and planting system, the row logging and
\nplanting conservation system, their forest conservation
\nactivities, their plantation projects on vacant land and other
\nnature preservation efforts.<\/p>\n
The company must also report its share equity in wood and non-
\nwood industries, the management of its wood-processing system and
\nthe area of remaining virgin forest.<\/p>\n
It must also disclose the remaining term of the concession,
\nheavy equipment used, the area planted in the current year and
\nthe cumulative area already planted. The forest concessionaire
\nmust also present a list of the company's managers and
\nshareholders, its transactions with parties with whom it has
\nspecial relationships and its efforts to conserve fauna, flora
\nand water. (10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/accounting-standard-introduced-for-forest-management-1447899208",
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"sponsor": "Okusi Associates",
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