Schedule 511 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
1. GENERAL continued Exploration and exploitationdevelopment areas
The Group has the following areas currently in exploration or exploitationdevelopment:
‰ Exploration areas
Location name Concession owner
Date of exploration permit
Expiry date of permit
Percentage of ownership
Total deferred exploration and
development expenditure as
at 31 March 2008
KW.05PB0108 . . . . . . . . . . . . . . . . . . . . . FKP
17 October 2006 11 April 2007 100
Rp 8,185 KW.03PB0059 3,434 hectares . . . . . . .
TSA 11 January 2007 11 April 2007
100 —
KW.05PB0065 . . . . . . . . . . . . . . . . . . . . . PIK
4 April 2006 2 January 2007
100 —
KW.KTN2006 097 Rr . . . . . . . . . . . . . . . BAS
1 August 2006 1 June 2009
100 Rp 157
‰ ExploitationDevelopment areas
Concession owner
Date of exploitation
permit Expiry date of
permit Percentage of
ownership Total
proven and probable
reserves in million
metric tonnes
Total production in million metric
tonnes Remaining
reserves as
at 31 March 2008
in million metric
tonnes Location name
Current year 2008
Cumulative total
production unaudited unaudited unaudited unaudited
Block-II . . . . GBP
2 August 1999 11 July 2029
100 54.6
0.9 28.6
26.0 Block-I . . . . .
GBP 28 August 2007
11 July 2029 100
2.0 —
— 2.0
Block Sepaso . . .
PIK 13 August 2007
29 March 2037 100
22.1 0.1
0.3 21.8
Block Satui . . . . .
WBM 26 October 2007 25 October 2037
100 76.2
0.2 0.2
76.0 KW KTN
2005018 . . FSP
21 July 2005 21 July 2025
100 318.8
0.8 0.8
318.0 KW KTN
2004046 . . BT
7 December 2004 6 April 2028 100
KW.03P B 0059 . . .
TSA 29 April 2008
23 April 2038 100
33.3 —
— 33.3
KW.03P B 0058 . . .
FKP 29 April 2008
23 April 2038 100
The remaining proven and probable reserves as at 31 March 2008 are based on the survey performed by Minarco Mineconsult, independent geologists in May 2008.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Group’s consolidated financial statements were prepared and finalised by the Board of Directors on 6 June 2008, except for Note 38 dated 21 July 2008.
Presented below are the significant accounting policies adopted in preparing the consolidated financial statements of the Group, which are in conformity with accounting principles generally accepted in Indonesia. The
consolidated financial statements are also prepared in conformity with Regulation of the Capital Markets and Financial Institutions Supervisory Board “BAPEPAM LK” No. VIII.G.7 for Guidance on the Presentation of
Financial Statements and the Circular Letter of BAPEPAM LK No. SE-02BL2008 dated 31 January 2008 for Guidance on the Preparation and Disclosure for Financial Statements of Public Company Issuers in the General
Mining Industry.
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Schedule 512 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued a. Basis of preparation of the consolidated financial statements
The consolidated financial statements have been prepared using historical costs, unless otherwise stated. The reporting currency used in the preparation of the consolidated financial statements is the Indonesian Rupiah
“Rupiah” or “Rp”. The consolidated statements of cash flows have been prepared based on the direct method by classifying
cash flows on the basis of operating, investing and financing activities. For the purpose of the consolidated statements of cash flows, cash and cash equivalents include cash on hand, cash in banks and deposits with a
maturity of three months or less, net of overdrafts.
Restructuring transactions for entities under common control are accounted for using the pooling of interests method. The difference between the transfer price and the book value is recorded under the account
“Difference in Value from Restructuring Transactions of Entities under Common Control” and presented under the equity section of the consolidated balance sheets.
b. Principles of consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries in which the Company directly or indirectly has ownership of more than 50 of voting rights, or if equal to or less than
50, the Company has the ability to control the entity. Subsidiaries are consolidated from the date on which effective control is transferred to the Company and are no longer consolidated from the date of disposal.
The effect of all transactions and balances between companies in the Group has been eliminated in preparing the consolidated financial statements.
The proportionate share of minority shareholders in the net assets of subsidiaries is presented as “minority interest” in the consolidated balance sheets.
A minority interest is not recognised in respect of subsidiaries with a deficit in equity unless the minority shareholder has a contractual obligation to contribute to fund the deficit.
Transactions with minority interests are accounted for under the economic entity method, with any excess on acquisition of minority interests over the share of net assets acquired being recorded in equity.
The accounting policies adopted in preparing the consolidated financial statements have been consistently applied by the subsidiaries unless otherwise stated.
The accounts of DPP and KOTR which are reported in a foreign currency, are translated into Rupiah using the following rates:
‰ Assets and liabilities: Bank Indonesia’s middle rate as at the balance sheets date, except for fixed assets which used historical rates.
‰ Equity accounts: historical rates. ‰ Profit and loss accounts: average rate of exchange throughout the year.
The difference resulting from the translation of balance sheets and profit and loss accounts is presented as “Exchange Difference from Financial Statements Translation” under the equity section of the consolidated
balance sheets.
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