PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2016 unaudited and December 31, 2015 audited and For the period of six months ended June 30, 2016 and 2015 unaudited
Expressed in thousands of Indonesian Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
b. Principles of consolidation
Effective January 1, 2015, the Group has adopted PSAK 65, “Consolidated Financial Statements”. The adoption of this PSAK has no significant impact to the financial reporting and disclosures in the consolidated financial
statements. The consolidated financial statements include the accounts of the Company and Subsidiaries, in which the Company maintains more than 50 share ownership, either directly or indirectly.
All material intercompany accounts and transactions including unrealized gains or losses have been eliminated. A Subsidiary is fully consolidated from the date of acquisition, being the date on which the Company obtains
control, and continues to be consolidated until the date such control ceases. Control is presumed to exist if the Company owns, directly or indirectly through another subsidiary, all of the
following: a power over investee;
b exposure or rights of variable returns from its involvement to investee; and c ability to use the power over investee to affect the amount of investor returns.
Non-controlling interests “NCI” represent the portion of the profit or loss and net assets of the Subsidiaries not attributable, directly or indirectly, to the Parent Entity, which are presented in the consolidated statement of profit
or loss and other comprehensive income and under the equity section of the consolidated statement of financial position, respectively, separately from the corresponding portion attributable to owners of the parent entity.
Losses of a non-wholly owned Subsidiary are attributed to the NCI even if the losses create an NCI deficit balance. In case of loss of control over a Subsidiary, the Company:
derecognizes the assets including goodwill and liabilities of the Subsidiary;
deregcognizes the carrying amount of any NCI;
deregcognizes the cumulative translation differences recorded in equity, if any;
recognizes the fair value of the consideration received;
recognizes the fair value of any investment retained;
recognizes any surplus or deficit in profit or loss; and
reclassifies the parent’s share of components previously recognized in other comprehensive income to profit
or loss or retained earnings, as appropriate. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the
Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the consolidated statements of profit or loss and other
comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income “OCI” are attributed to the equity holders of the parent of the Group and to the Non-controlling interests “NCI”, even if this results in the NCI having a deficit
balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity,
income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
c. Business combination
