Segment reporting PT. Bayan Resources Tbk - Prospectus

Schedule 519 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued w. Use of estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in Indonesia requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and activities, actual results could differ from those estimates.

3. ACQUISITION AND ADDITIONAL SHARES IN SUBSIDIARIES

In 2007, 2006 and 2005, the Company and BE made share capital acquisitions in subsidiaries as follows: Acquired parties Acquiring parties Acquisition date Total acquired share capital Acquired from 1. DPP —the Company and BE 5 October 2005 51.00 GBP, Low Tuck Kwong 2. PIK —the Company and BE 28 March 2005 100.00 PT Kaltim Bara Sentosa, Low Tuck Kwong, Engki Wibowo 3. IP —the Company and BE 28 March 2005 100.00 Low Tuck Kwong, Engki Wibowo, Jenny Quantero, 4. WBM —the Company and BE 28 March 2005 100.00 PT Kaltim Investama, Low Tuck Kwong, Engki Wibowo 5. BE —the Company 2 May 2005 99.90 Low Tuck Kwong, Engki Wibowo, Jenny Quantero, 6. TSA —the Company 11 August 2006 75.04 PT Sumber Harmoni Sekawan —BE 26 December 2007 24.96 PT Bara Citra Indah 7. FKP —the Company 11 August 2006 75.00 PT Selecta Harum Sari —BE 26 December 2007 25.00 PT Bara Citra Indah 8. FSP —the Company 14 December 2007 90.00 Low Tuck Kwong 9. BT —the Company 7 November 2007 90.00 Low Tuck Kwong 10. BAS —the Company 31 December 2007 90.00 Low Tuck Kwong In addition, the Company and BE injected additional capital into the following subsidiaries, diluting the minority interests: Investee Investor Date of injection of additional capital Total additional shareholding Diluted parties 1. DPP —the Company and BE 19 December 2007 36.42 Pan Marine International Ltd. 2. MP —the Company 6 December 2007 95.24 Low Tuck Kwong, Engki Wibowo, Jenny Quantero F-36