PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued b. Principles of consolidation continued
NCI represent the portion of the profit or loss and net assets of the Subsidiaries not attributable, directly or indirectly, to the Company, which are presented in the consolidated statements of
comprehensive income and under the equity section of the consolidated statements of financial position, respectively, separately from the corresponding portion attributable to the owners of the
Parent Entity. The transactions with non-controlling interests that do not result in a loss of control are accounted
for as an equity transaction i.e., a transaction with owners in their capacity as owners. The difference between the fair value of any consideration paid and the relevant acquired share of the
carrying value of the net assets of the Subsidiary is recorded in equity.
c. Business combination The Company and Subsidiaries adopted PSAK No. 22 Revised 2010, “Business Combinations”.
In accordance with the transitional provisions of PSAK No. 22 Revised 2010, the Company and Subsidiaries:
• ceased the goodwill amortization;
• eliminated the carrying amount of the related accumulated amortization of goodwill; and
• performed an impairment test of goodwill in accordance with PSAK No. 48 Revised
2009, “Impairment of Assets”. The
excess amounting to Rp1,021,260 of interest in net assets of a Subsidiary over the net cost of acquisition as of December 31, 2010 was credited to retained earnings as of January 1, 2011 due
to the implementation of this PSAK Note 19. Business combinations are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition-date fair value and the amount of any NCI in the acquiree. For each business combination, the acquirer
measures the NCI in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are directly expensed and included in
administrative expenses.
When the Company or a subsidiary acquires a business, it assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the
contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date
through profit or loss.
