Th e Com pa n y ’ s Bon ds Offe r in g

PT. CHANDRA ASRI PETROCHEMI CAL Tbk DAN ENTI TAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLI DASI AN 31 DESEMBER 2016 DAN 2015 DAN UNTUK TAHUN-TAHUN YANG BERAKHI R PADA TANGGAL TERSEBUT Lanjutan PT. CHANDRA ASRI PETROCHEMI CAL Tbk AND I TS SUBSI DI ARI ES NOTES TO CONSOLI DATED FI NANCI AL STATEMENTS DECEMBER 31, 2016 AND 2015 AND FOR THE YEARS THEN ENDED Continued - 12 - Laba r ugi dan set iap k om ponen penghasilan k om pr ehensif lain diat r ibusik an k epada pem ilik ent it as induk dan unt uk k epent ingan nonpengendali. Per usahaan j uga m engat r ibusik an t ot al laba k om pr ehensif ent it as anak k epada pem ilik ent it as induk dan k epent ingan nonpengendali m esk ipun hal t er sebut m engak ibat k an k epent ingan nonpengendali m em ilik i saldo defisit . Pr ofit or loss and each com ponent of ot her com pr ehensiv e incom e ar e at t r ibut ed t o t he ow ner s of t he Com pany and t o t he non- cont r olling int er est . Tot al com pr ehensiv e incom e of subsidiar ies is at t r ibut ed t o t he ow ner s of t he Com pany and t he non- cont r olling int er est ev en if t his r esult s in t he non- cont r olling int er est hav ing a deficit balance. Jik a diper luk an, peny esuaian dapat dilak uk an t er hadap lapor an k euangan ent it as anak agar k ebij ak an ak unt ansi sesuai dengan k ebij ak an ak unt ansi Gr up. When necessar y , adj ust m ent ar e m ade t o t he financial st at em ent s of subsidiar ies t o br ing t heir account ing policies in line w it h t he Gr oup’s account ing policies. Selur uh aset dan liabilit as dalam int r a k elom pok usaha, ek uit as, pendapat an, biay a dan ar us k as y ang ber k ait an dengan t r ansak si dalam k elom pok usaha dielim inasi secar a penuh pada saat k onsolidasian. All int r agr oup asset s and liabilit ies, equit y , incom e, ex penses and cash flow s r elat ing t o t r ansact ions bet w een m em ber s of t he Gr oup ar e elim inat ed in full on consolidat ion. Per ubahan k epem ilik an Gr up pada ent it as anak y ang t idak m engak ibat k an k ehilangan pengendalian Gr up at as ent it as anak dicat at sebagai t r ansak si ek uit as. Jum lah t er cat at dar i k epem ilik an Gr up dan k epent ingan nonpengendali disesuaik an unt uk m encer m ink an per ubahan k epent ingan r elat ifny a dalam ent it as anak . Selisih ant ar a j um lah t er cat at k epent ingan nonpengendali y ang disesuaik an dan nilai w aj ar im balan y ang dibay ar at au dit er im a diak ui secar a langsung dalam ek uit as dan diat r ibusik an dengan pem ilik ent it as induk . Changes in t he Gr oup’s ow ner ship int er est in subsidiar ies t hat do not r esult in t he Gr oup losing cont r ol ov er t he subsidiar ies ar e account ed for as equit y t r ansact ions. The car r y ing am ount s of t he Gr oup’s int er est and t he non- cont r olling int er est ar e adj ust ed t o r eflect t he changes in t heir r elat iv e int er est in t he subsidiar ies. Any differ ence bet w een t he am ount by w hich t he non- cont r olling int er est ar e adj ust ed and t he fair v alue of t he consider at ion paid or r eceiv ed is r ecognized dir ect ly in equit y and at t r ibut ed t o ow ner s of t he Com pany . Ket ik a Gr up k ehilangan pengendalian pada ent it as anak , k eunt ungan at au k er ugian diak ui dalam laba r ugi dan dihit ung sebagai per bedaan ant ar a i agr egat nilai w aj ar pem bay ar an y ang dit er im a dan nilai w aj ar sisa k epem ilik an r et ained int er est dan ii j um lah t er cat at sebelum ny a dar i aset t er m asuk goodw ill , dan liabilit as dar i ent it as anak dan set iap k epent ingan nonpengendali. Selur uh j um lah y ang diak ui sebelum ny a dalam penghasilan k om pr ehensif lain y ang t er k ait dengan ent it as anak y ang dicat at seolah- olah Gr up t elah m elepask an secar a langsung aset at au liabilit as t er k ait ent it as anak y ait u dir ek lasifik asi k e laba r ugi at au dit r ansfer k e k at egor i lain dar i ek uit as sebagaim ana dit ent uk an diizink an oleh st andar ak unt ansi y ang ber lak u . Nilai w aj ar set iap sisa inv est asi pada ent it as anak t er dahulu pada t anggal hilangny a pengendalian dianggap sebagai nilai w aj ar pada saat pengak uan aw al unt uk ak unt ansi ber ik ut ny a dalam PSAK 55, I nst r um en Keuangan: Pengak uan dan Penguk ur an at au, k et ik a ber lak u, biay a per olehan pada saat pengak uan aw al dar i inv est asi pada ent it as asosiasi. When t he Gr oup losses cont r ol of a subsidiar y , a gain or loss is r ecognized in pr ofit or loss and is calculat ed as t he differ ence bet w een i t he aggr egat e of t he fair v alue of t he consider at ion r eceiv ed and t he fair v alue of any r et ained int er est and ii t he pr ev ious car r y ing am ount of t he asset s including goodw ill , and liabilit ies of t he subsidiar y and any non- cont r olling int er est . All am ount s pr ev iously r ecognized in ot her com pr ehensiv e incom e in r elat ion t o t hat subsidiar y ar e account ed for as if t he Gr oup had dir ect ly disposed of t he r elat ed asset s or liabilit ies of t he subsidiar y i.e. r eclassified t o pr ofit or loss or t r ansfer r ed t o anot her cat egor y of equit y as specified per m it t ed by applicable account ing st andar ds . The fair v alue of any inv est m ent r et ained in t he for m er subsidiar y at t he dat e w hen cont r ol is lost is r egar ded as t he fair v alue on init ial r ecognit ion for subsequent account ing under PSAK 55, Financial I nst r um ent s: Recognit ion and Measur em ent or , w hen applicable, t he cost on init ial r ecognit ion of an inv est m ent in an associat e. PT. CHANDRA ASRI PETROCHEMI CAL Tbk DAN ENTI TAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLI DASI AN 31 DESEMBER 2016 DAN 2015 DAN UNTUK TAHUN-TAHUN YANG BERAKHI R PADA TANGGAL TERSEBUT Lanjutan PT. CHANDRA ASRI PETROCHEMI CAL Tbk AND I TS SUBSI DI ARI ES NOTES TO CONSOLI DATED FI NANCI AL STATEMENTS DECEMBER 31, 2016 AND 2015 AND FOR THE YEARS THEN ENDED Continued - 13 -

d. Kom bin a si Bisn is

Ak uisisi bisnis dicat at dengan m enggunak an m et ode ak uisisi. I m balan y ang dialihk an dalam suat u k om binasi bisnis diuk ur pada nilai w aj ar , y ang dihit ung sebagai hasil penj um lahan dar i nilai w aj ar t anggal ak uisisi at as selur uh aset y ang dialihk an oleh Gr up, liabilit as y ang diak ui oleh Gr up k epada pem ilik sebelum ny a dar i pihak y ang diak uisisi dan k epent ingan ek uit as y ang dit er bit k an oleh Gr up dalam per t uk ar an pengendalian dar i pihak y ang diak uisisi. Biay a- biay a t er k ait ak uisisi diak ui di dalam laba r ugi pada saat t er j adiny a. d. Bu sin e ss Com bin a t ion s Acquisit ions of businesses ar e account ed for using t he acquisit ion m et hod. The consider at ion t r ansfer r ed in a business com binat ion is m easur ed at fair v alue, w hich is calculat ed as t he sum of t he acquisit ion- dat e fair v alues of t he asset s t r ansfer r ed by t he Gr oup, liabilit ies incur r ed by t he Gr oup t o t he for m er ow ner s of t he acquir ee, and t he equit y int er est s issued by t he Gr oup in ex change for cont r ol of t he acquir ee. Acquisit ion- r elat ed cost s ar e r ecognized in pr ofit or loss as incur r ed. Pada t anggal ak uisisi, aset t er ident ifik asi y ang diper oleh dan liabilit as y ang diam bilalih diak ui pada nilai w aj ar k ecuali unt uk aset dan liabilit as t er t ent u y ang diuk ur sesuai dengan st andar y ang r elev an. At t he acquisit ion dat e, t he ident ifiable asset s acquir ed and t he liabilit ies assum ed ar e r ecognized at t heir fair v alue ex cept for cer t ain asset s and liabilit ies t hat ar e m easur ed in accor dance w it h t he r elev ant st andar ds. Goodw ill diuk ur sebagai selisih lebih dar i nilai gabungan dar i im balan y ang dialihk an, j um lah set iap k epent ingan nonpengendali pada pihak diak uisisi dan nilai w aj ar pada t anggal ak uisisi k epent ingan ek uit as y ang sebelum ny a dim ilik i oleh pihak pengak uisisi pada pihak diak uisisi j ik a ada at as j um lah net o dar i aset t er ident ifik asi y ang diper oleh dan liabilit as y ang diam bilalih pada t anggal ak uisisi. Jik a, set elah penilaian k em bali, j um lah net o dar i aset t er ident ifik asi y ang diper oleh dan liabilit as y ang diam bilalih pada t anggal ak uisisi m elebihi j um lah im balan y ang dialihk an, j um lah dar i set iap k epent ingan nonpengendali pada pihak diak uisisi dan nilai w aj ar pada t anggal ak uisisi k epent ingan ek uit as y ang sebelum ny a dim ilik i oleh pihak pengak uisisi pada pihak diak uisisi j ik a ada , selisih lebih diak ui seger a dalam laba r ugi sebagai pem belian dengan disk on. Goodw ill is m easur ed as t he ex cess of t he sum of t he consider at ion t r ansfer r ed, t he am ount of any non- cont r olling int er est s in t he acquir ee, and t he fair v alue of t he acquir er ’s pr ev iously held equit y int er est in t he acquir e if any ov er t he net of t he acquisit ion- dat e am ount s of t he ident ifiable asset s acquir ed and t he liabilit ies assum ed. I f, aft er t he r eassessm ent , t he net of t he acquisit ion- dat e am ount s of t he ident ifiable asset s acquir ed and liabilit ies assum ed ex ceeds t he sum of t he consider at ion t r ansfer r ed, t he am ount of any non- cont r olling int er est s in t he acquir ee and t he fair v alue of t he acquir er ’s pr ev iously held int er est in t he acquir ee if any , t he ex cess is r ecognized im m ediat ely in pr ofit or loss as a bar gain pu r chase opt ion. Kepent ingan nonpengendali y ang m eny aj ik an bagian k epem ilik an dan m em ber ik an m er ek a hak at as bagian pr oposional dar i aset net o ent it as dalam hal t er j adi lik uidasi pada aw alny a diuk ur baik pada nilai w aj ar at aupun pada bagian pr opor sional k epem ilik an k epent ingan nonpengendali at as aset net o t er ident ifik asi dar i pihak y ang diak uisisi. Pilihan dasar penguk ur an dilak uk an at as dasar t r ansak si. Kepent ingan nonpengendali j enis lain diuk ur pada nilai w aj ar at au, j ik a ber lak u, pada dasar penguk ur an lain y ang dit ent uk an oleh st andar ak unt ansi lain. Non- cont r olling int er est s t hat ar e pr esent ow ner ship int er est s and ent it les t heir holder s t o a pr opor t ionat e shar e of t he ent it y ’s net asset s in t he ev ent of liquidat ion m ay be init ially m easur ed eit her at fair v alue or at t he non- cont r olling int er est s’ pr opor t ionat e shar e of t he acquir ee’s ident ifiable net asset s. The choice of m easur em ent basis is m ade on a t r ansact ion- by - t r ansact ion basis. Ot her t y pes of non- cont r olling int er est s ar e m easur ed at fair v alue or , w hen applicable, on t he basis specified in anot her account ing st andar d.