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DAro EnErgy 2013 AnnuAl rEporT
171
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 511
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
º
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Principles of consolidation continued
iv. Associates continued
- Disposals
Investments in associates are derecognised when the Group loses significant influence and any retained equity interest in the entity is remeasured at its fair value. The difference between the carrying amount of
the retained interest at the date when significant influence is lost and its fair value is recognised in profit or loss.
Gains and losses arising from partial disposals or dilutions of investments in associates in which significant influence is retained are recognised in profit or loss, and only a proportionate share of the
amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate.
d. Foreign currency translation
i. Functional and presentation currency
Items included in the financial statements of each of the entities within the Group are measured using the currency of the primary economic environment in which the relevant entity operates the functional currency.
The consolidated financial statements are presented in US Dollars, which is the Company’s functional and presentation currency.
ii. Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
As at the consolidated statement of financial position dates, the exchange rates used, based on the middle rates published by Bank Indonesia, were as follows full US Dollar amount:
2013 2012
Rupiah 10,000 “Rp” 0.82
1.03 Great Britain Pound Sterling “£”
1.65 1.61
Singapore Dollars “S” 0.79
0.82 Australian Dollars “A”
0.89 1.04
Euro “€” 1.38
1.32 Japanese Yen 100 “¥”
0.95 1.28
iii. Group companies
The results of the operations and financial position of all the Group’s subsidiaries none of which has the currency of a hyperinflationary economy that have a functional currency which is different from the
Company’s presentation currency are translated into the Company’s presentation currency as follows:
a The assets and liabilities presented in the consolidated statement of financial position are translated at the closing rate at the date of that consolidated statement of financial position;
b The income and expenses for each profit or loss are translated at average exchange rates unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the
transaction dates, in which case the income and expenses are translated at the rate on the dates of the transactions; and
c All of the resulting exchange differences are recognised in other comprehensive income.
172
»¼½
IABlE, STrong, EFFICIEnT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 512
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
¾
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
e. Cash and cash equivalents
