Telkom finishes reaudit of 2002 accounts
The Jakarta Post, Jakarta
State-owned telecommunications company PT Telkom will file its reaudited 2002 financial accounts next week, a source at the company said on Tuesday.
The source was quoted by Dow Jones as saying that the publicly listed company would likely hand in the results on Monday to the U.S. Securities and Exchange Commission (SEC). Telkom will hold a media conference the following day to provide details of the revised 2002 financial statement.
The completion of the audit is seen as a crucial step to avoid being delisted from the New York Exchange. Telkom is listed both on the Jakarta Stock Exchange and in the U.S. stock market.
Problems with Telkom's 2002 financial report emerged after the U.S. Securities and Exchange Commission (SEC) rejected in June last year an earlier audit because the report was audited by an Indonesian accounting firm which was not approved by the SEC.
The SEC has demanded that Telkom resubmit the 2002 accounts as soon as possible or risk being delisted from the U.S. stock market. Telkom then called in PricewaterhouseCoopers (PwC) to reaudit the report.
However, the reaudit has taken longer than expected because PwC wants to reaudit Telkom's 2001 and 2000 financial reports as well, since the auditor claimed that they are related to the 2002 report.
PwC then discussed the issues with Deloitte to determine the necessary adjustments to the reports.
The most complicated issues the two auditors were debating center on the need to make adjustments in the calculation of deferred taxes and the consolidation of revenue from Telkom's former joint-venture company PT Pramindo Ikat Nusantara.
According to a Telkom press statement on Dec. 30, one of the adjustments would be a decline in its consolidated net income for 2002, 2001 and 2000 by a maximum of 5 percent, 10 percent and 5 percent respectively.
Meanwhile, Telkom shares ended 0.7 percent higher at Rp 7,200 on Thursday following the news and amid an overall rally in the stock market.