PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2011 AND DECEMBER 31, 2010 AND CONSOLIDATED COMPREHENSIF STATEMENTS OF INCOME FOR THE THREE MONTHS
PERIOD ENDED MARCH 31, 2011 AND 2010 Continued
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n. Deferred Charges on Landrights
Deferred charges relating to the legal processing of landrights are amortized using the straight
– lines method over the legal terms of the landrights, since the legal term of the landrights is shorter than its economic life. The amortization begins when the legal
processing of landrights is substantially complete.
o. Treasury Stocks
Treasury stocks are accounted for using the par value method. Under the par value method, the treas
ury stock is accounted for at par value as “Treasury Stock” account and presented as a reduction of “Capital Stock” account. If the treasury stock
had originally been issued at a price above par value, the “Additional Paid-in Capital” account is debited for the related difference between the par value and the reacquisition cost of the
treasury stocks.
p. Stock Issuance Costs
Stock issuance cost are deducted from the “Additional paid – in capital “portion of the stocks
issued and are not amortized..
q. Impairment of Assets
An assessment by management of the assets value is made at each balance sheet date to determine whether there is any indication of impairment of any assets and possible written
– down to its recoverable amount whenever events or changes in circumstances indicate that
the asset value is impaired. An impairment loss is recognized only if the carrying amount of an asset exceeds the
recoverable amount.
An asset‟s recoverable amount is computed as the higher of the asset‟s value in use and its net selling price. On the other hand, a reversal of an impairment loss is
recognized whenever there is indication that the asset is not impaired anymore. The amount of impairment loss reversal of impairment loss is charged to credited in
current year
‟s operations.
r. Revenue and Expense Recognition
Revenue from local sales are recognized when the goods are delivered to the customers, while revenues from export sales are recognized in accordance with the term of sale.
Revenues from sale of term used rights hak pakai berjangka on real estate assets such as kiosks and shophouses, as well as plaza, for which the development process is completed,
are recognized based on the full accrual method when all of the following conditions are met:
1. The sale is consummated;
2. Sales price is collectible, wherein the total payments made by the buyers are at least
20 of the agreed sales price, and the amount paid cannot be refunded by the buyers;
PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2011 AND DECEMBER 31, 2010 AND CONSOLIDATED COMPREHENSIF STATEMENTS OF INCOME FOR THE THREE MONTHS
PERIOD ENDED MARCH 31, 2011 AND 2010 Continued
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The seller‟s receivable is not subject to future subordination; and 4.
The seller has transferred to the buyer the risks and rewards of ownership in a transaction that is in substance a sale and does not have a substantial continuing
involvement with the property. If any of the above conditions is not met, all payments received from the buyers are recorded
as advances received using the deposit method, until all of the conditions are met.
Expenses are recognized when incurred accrual basis. Effective January 1, 2010, transaction costs incurred that are directly attributable to
the acquisition or issuance of financial instruments not measured at fair value through profit and loss are amortized over the life of financial instruments using the effective interest rate
method and recorded as part of interest income to fee transaction-related financial assets, and as part of interest expense related to transaction costs of financial liabilities.
Effective January 1, 2010, interest income and interest expense are recognized in the consolidated statement of income using the effective interest rate method. Prior to January 1,
2010, interest income and interest expense are recognized on an accrual basis based on contractual interest rates.
s. Borrowing Cost
