182
Þßà
IABlE, STrong, EFFICIEnT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 522
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
á
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
w. Earnings per share
Basic earnings per share are calculated by dividing the profit for the year attributable to owners of the parent of the Company by the weighted-average number of ordinary shares outstanding during the year.
Diluted earnings per share are calculated by dividing the profit for the year attributable to owners of the parent of the Company adjusted for finance costs and foreign exchange gains or losses on convertible bonds and their
related tax effects, by the weighted-average number of issued and fully paid-up shares during the year, assuming that all options have been exercised and all convertible bonds have been converted.
x. Dividend distribution
Dividend distributions to the Company’s shareholders are recognised as liabilities in the consolidated financial statements in the year in which the dividends are declared by the Company.
y. Business combination of entities under common control
Business combination of entities under common control are accounted for using the pooling-of-interests method. The difference between the consideration received and the carrying value of each restructuring transaction among
entities under common control is recorded as part of additional paid-in capital in the equity section of the consolidated statement of financial position.
z. Revenue and expenses recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of coal, sales of electricity and services rendered in the ordinary course of the Group’s activities. Revenue is shown net of value added tax
“VAT”, returns, rebates and discounts and after eliminating intra-group sales.
i. Sales of coal
Revenue from sales of coal is recognised when all of the following conditions are met: -
the Group has transferred to the buyer the significant risks and rewards of ownership of the coal; -
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the coal sold;
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the Group; and
- the costs incurred or to be incurred in relation to the sales transaction can be measured reliably.
The satisfaction of these conditions depends on the terms of trade with individual customers. Generally the risks and rewards are considered to be transferred to the customer when the title and insurable risk of loss
are transferred.
The Group’s coal sales can be subject to an adjustment based on the inspection of shipments by the customer. In these cases, revenue is recognised based on the Group’s best estimate of the grade andor quantity at the
time of shipment, and any subsequent adjustments are recorded against revenue. Historically, the differences between estimated and actual grade andor quantity are not significant.
â
u r p
r o
F Il
E o
u r
M E
SSA g
E S
o u
r B u
S In
E S
S
o u
r pE
o pl
E
o u
r g
o v
Ern A
n C
E o
ur C
o M
M un
IT IE
S o
u r I
n v
E S
T o
r S
o u
r F
In An
C E
S
ã
DAro EnErgy 2013 AnnuAl rEporT
183
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 523
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
ä
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
z. Revenue and expenses recognition continued
ii. Rendering of mining and logistics services
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised with reference to the stage of completion of the transaction at
the consolidated statement of financial position date. The outcome of a transaction can be estimated reliably when all of the following conditions are met:
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the Group;
- the stage of completion of the transaction at the end of the reporting year can be measured reliably; and
- the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
When the outcome of a transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
iii. Sales of electricity
Revenues generated from sales of electricity are recognised when the electrical output is delivered to the customers.
iv. Interest income
Interest income is recognised using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow
discounted at the original effective interest rate of the instrument, and continues to unwind the discount as interest income. Interest income on impaired loans and receivables is recognised using the original effective
interest rate.
v. Rental income
