PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 AND 2008 AND FOR THE NINE MONTHS PERIOD THEN ENDED Continued
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p. Treasury Stocks
Treasury stocks are accounted for using the par value method. Under the par value method, the treasury 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.
q. Stock Issuance Costs
Stock issuance cost are deducted from the “Additional paid – in capital “ portion of the stocks
issued and are not amortized..
r. 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.
s. 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; 3.
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.
PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 AND 2008 AND FOR THE NINE MONTHS PERIOD THEN ENDED Continued
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t. Borrowing Cost
Borrowing cost are interest and exchange difference on foreign currency denominated borrowings and other costs amortization of discountspremiums on borrowing, etc. incurred
in connection with the borrowing of funds. Borrowing cost are recognized as an expenses in the period in which they are incurred,
except for those borrowing costs which are directly attributable to the development of immature plantations which are capitalized to immature plantation.
If the borrowing is specifically used for the purpose of acquiring a qualifying assets, the total borrowing cost eligible for capitalization are all borrowing cost incurred on that borrowing
during the period, less any interest earned from temporary investment on the unused borrowings.
Capitalization of borrowing cost as part of the acquisition cost of an asset commence when expenditure for the asset are being incurred; borrowing costs are being incurred; and
activities that are necessary to prepare the construction or the production of the qualifying asset are in progress.
Capitalization of borrowing cost are suspended, if during extended periods the active development or production of the qualifying asset is interrupted, while capitalization of
borrowing cost cease when all the activities necessary to acquire, build or produce the qualifying asset for its intended use or sale are substantially complete.
u. Employee Benefits
