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DAro EnErgy 2013 AnnuAl rEporT
169
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
³
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Principles of consolidation
i. Subsidiaries
i.1. Consolidation
Subsidiaries are all entities including special purpose entities, over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than half of
the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The Group also
assesses the existence of control where it does not have more than 50 of the voting rights but is able to govern the financial and operating policies by virtue of control. Control may arise in circumstances where
the size of the Group’s voting rights relative to the size and dispersion of holdings of other shareholders give the Group the power to govern the financial and operating policies, etc.
Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de- consolidated from the date when that control ceases.
Intragroup balances, transactions, income and expenses are eliminated. Profits and losses resulting from intragroup transactions that are recognised in assets are also eliminated. The accounting policies of
subsidiaries have been amended where necessary to ensure consistency with the policies adopted by the Group.
i.2. Acquisition
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities
incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent
consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.
The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable
net assets. Non-controlling interest is reported as equity in the consolidated statements of financial position, separate from the owner of the parent’s equity.
Acquisition-related costs are expensed as incurred. If the business combination is achieved in stages, the Group will remeasure its previously held equity
interest in the acquiree at its acquisition date and recognise the resulting gain or loss, if any, in profit or loss.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset
or a liability are recognised in profit or loss. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity.
The excess of the consideration transferred, the amount of any non-controlling interests in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the
Group’s share of the identifiable net assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all
amounts has been re-reviewed, in the case of a bargain purchase, the difference is recognised directly in profit or loss.
170
´µ¶
IABlE, STrong, EFFICIEnT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 510
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
·
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Principles of consolidation continued
