PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED u. Financial instruments continued
ii. Financial liabilities continued iii. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.
iv. Amortized cost of financial instruments
Amortized cost is computed using the effective interest rate method less any allowance for impairment and principal repayment or reduction. The calculation takes into account any premium or discount on acquisition and
includes transaction costs and fees that are an integral part of the effective interest rate.
v. Earning per share
Earnings per share amount is calculated by dividing the profit for the year attributable to owners of the Parent Entity by the weighted average number of shares outstanding during the year.
w. Operating Segments
A segment is a distinguishable component of the Company and its subsidiaries that is engaged either in providing certain products and services business segment or in providing products and services within a particular economic
environment geographical segment, which is subjected to risks and rewards that are different from those in other segments.
Segment revenue, expenses, results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis to that segment. They are determined before intra-group balances
and intra-group transactions are eliminated.
x. Business combination of entities under common control
Transfer of business within entities under common control does not result in a change of the economic substance of ownership of the business being transferred and does not result in gain or loss to the Group or to the individual entity
within the Group. Since the transfer of business of entities under common control does not result in a change of the economic substance, the business being exchanged is recorded at book value as a business combination using the
pooling of-interests method. Under the pooling-of-interests method, the components of the financial statements for the period during which the
restructuring occurred and for other periods presented, for comparison purposes, are presented in such a manner as if the restructuring had already happened from the beginning of the periods during which the entities were under
common control. The difference between the carrying amounts of the business combination transaction and the consideration transferred is recognized as part of the account “Additional Paid-in Capital”.
Sukuk ijarah payable Sukuk ijarah is recognized when the Group becomes a party involved with the issuance of sukuk ijarah which is
presented as a liability. At initial recognition, sukuk ijarah is stated at nominal amount, adjusted for premium or discount and sukuk ijarah issuance costs. After initial recognition, if the amount recorded is different with the nominal
amount, the difference is amortized using the straight-line method over the term of the sukuk ijarah. Sukuk ijarah issuance costs are directly deducted from the issue proceeds in the consolidated statement of financial
position as a transaction cost and are amortized using the straight-line method over the term of the sukuk ijarah.
PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
31
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED z. Events after the financial reporting period
Post year-end events that provide additional information about the Group’s position at reporting period adjusting events are reflected in the consolidated financial statements. Post year-end events that are not adjusting events are
disclosed in the notes to the consolidated financial statements when material.
3. MANAGEMENT’S USE OF JUDGMENTS, ESTIMATES AND ASSUMPTIONS
