NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 515 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies continued
b.ii. SFAS 62 - Insurance Contract continued b. The Subsidiary shall assess at each reporting date whether its recognised insurance
liabilities are adequate, using current estimates of future cash flows under its insurance contract. If the assessment shows that the carrying amount of its insurance liabilities is
inadequate in the light of the estimated future cash flows, the entire deficiency shall be recognised in profit or loss.
c. The Subsidiary presents the value of its reinsurance assets. The Subsidiary has implemented this SFAS 62 and there is no significant impact to the
Subsidiary’s financial statements. b.iii. SFAS 36 Revised 2010 - Accounting for Life Insurance Contract
Several notable revisions which relevant to the Subsidiary are as follows: a.
The Subsidiary is required to calculated the liability for future policy benefits that reflects the present value of estimated payments throughout the guaranteed benefits including all the
embedded options available, the estimated present value of all handling costs incurred and also considering the future premium receipt. If the Subsidiary does not have sufficient data
to perform the calculation, the Subsidiary can use the previous accounting policy.
b. The Subsidiary is required to perform a liability adequacy test in accordance with the
requirements set out in SFAS 62: Insurance Contract. The discount rate used is the best estimate of the discount rate that reflects current conditions and the inherent risk in the
liability.
c. The Subsidiary presents the value of its reinsurance assets.
The Subsidiary has implemented this SFAS 36 Revised 2010 and there is no significant impact to the Subsidiary’s financial statements.
b.iv. Disclosure of related parties Starting 1 January 2012, under Bapepam and LK regulation No. VIII.G.7, attachment of the
Chairman of Bapepam and LK’s decree No. KEP-347BL2012 dated 25 June 2012 on Financial Statements Presentation and Disclosure for Issuers or Public Companies,
Government related Entities are defined as entities under the controls by the Minister of Finance or the Provincial Government who have shares ownership in the Bank.
Prior to 1 January 2012, definition of Government related entities followed SFAS 7 Revised 2010 regarding “Related Party Disclosures” which includes transactions of Government Bonds
and transactions between the Bank with State Owned Enterprises and entities ownedcontrolled by the Government, except for transactions with the Directorate General of Taxation which are
not treated as transactions with related parties.
Comparative information has been restated see Note 54. See Note 2f for definition and accounting policy on transactions with related parties.
b.v. Withdrawal of SFAS 39 PPSAK 11 - Accounting for Joint Operation As at 31 December 2012, the Bank has joint operation in form of Build Operate Transfer BOT
with developer, which will be matured in 2014 and 2016.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 516 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies continued
b.v. Withdrawal of SFAS 39 PPSAK 11- Accounting for Joint Operation continued The withdrawal of SFAS 39 effective on 1 January 2012, has changed the accounting treatment
of BOT transactions, which now follows SFAS 16 Revised 2011 - Fixed Asset and is applied retrospectively. There is no significant impact on the withdrawal of this SFAS to the Group’s
consolidated financial statements and therefore the impact to consolidated financial statements prior to 1 January 2012 was charged to the current year consolidated statement of
comprehensive income.
The adoption of these new and revised relevant standards and interpretations did not result in substantial changes to the Grup’s accounting policies and had no material effects on the amounts
reported for the current or prior financial periods:
- SFAS 10 Revised 2010 - The Effects of Changes in Foreign Exchange Rates
- SFAS 13 Revised 2011 - Investment Property
- SFAS 16 Revised 2011 - Fixed Assets
- SFAS 18 Revised 2010 - Accounting and Reporting by retirement Benefit Plans
- SFAS 24 Revised 2010 - Employee Benefits
- SFAS 26 Revised 2011 - Borrowing Costs
- SFAS 28 Revised 2010 - Accounting for Insurance
- SFAS 30 Revised 2011 - Rent
- SFAS 46 Revised 2010 - Income Taxes
- SFAS 50 Revised 2010 - Financial Instruments: Presentation
- SFAS 53 Revised 2010 - Share-based Payments
- SFAS 55 Revised 2011 - Financial Instruments: Recognition and Measurement
- SFAS 56 Revised 2011 - Earnings per share
- SFAS 61 - Accounting for Government Grants and Disclosure of Government Assistance
- SFAS 63 - Financial Reporting in Hyperinflationary Economics
- SFAS 64 - Activities of mining Exploration and Evaluation of Mineral Resources
- ISAK 13 - Hedges of Net Investment in Foreign Operation
- ISAK 15 - SFAS 24, The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction -
ISAK 19 - Applying the Restatement Approach under SFAS 63: Financial Reporting in Hyperinflationary Economics
- ISAK 20 - Income Tax - Changes in the Tax Status of an Entity or its Shareholders
- ISAK 23 - Rent-Incentives Operations
- ISAK 24 - Evaluating the Substance of Transactions Involving Some Form A Legal Rent
- ISAK 25 - Land Rights
- ISAK 26 - Reassessment of Embedded Derivative
Revocation of these SFAS and ISAK had no material impacts to the Group’s consolidated financial statements:
- SFAS 11 - Financial Statements of Foreign Currency
- SFAS 27 - Accounting for Cooperatives
- SFAS 29 - Accounting for Oil and Gas
- SFAS 44 - Accounting for Real Estate Development Activities
- SFAS 47 - Accounting for Land
- SFAS 52 - Accounting for Reporting Currency
- ISAK 4 - Alternative treatment Permitted on Foreign Exchanged, and
- ISAK 5 - Reporting Changes in Fair Value of Investment Securities Available for Sale Group
