PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
9
1. GENERAL continued 2005
2004
Board of Directors President
Daniel Eugene Antoine Lavalle Daniel Eugene Antoine Lavalle
Vice President Tedy Djuhar
Tedy Djuhar Director
Thomas Willi Kern Thomas Willi Kern
Director Hans Oivind Hoidalen
Hans Oivind Hoidalen Director
Iwa Kartiwa Iwa Kartiwa
Director Nelson G. D. Borch
Nelson G. D. Borch Director
Benny Setiawan Santoso Benny Setiawan Santoso
Director Christian Kartawijaya
Bradley Reginald Taylor Director
DR. Albert Scheuer Christian Kartawijaya
Total salaries and other compensation benefits paid to the Company’s boards of commissioners and directors amounted to Rp16.3 billion and Rp15.1 billion for the nine months ended September 30, 2005
and 2004, respectively. As of September 30, 2005 and 2004, the Company and Subsidiaries have a total of 6,698 and 7,078 permanent employees, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Preparation of the Consolidated Financial Statements
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles and practices in Indonesia, which are based on
Statements of Financial Accounting Standards PSAK, the Capital Market Supervisory Agency’s Bapepam regulations, and Guidelines for Financial Statements Presentation and Disclosures for
publicly listed companies issued by the Bapepam for manufacturing and investment companies. The consolidated financial statements have been prepared on the accrual basis using the historical
cost concept of accounting, except for inventories which are valued at the lower of cost or net realizable value market, derivative instruments and short-term investments which are stated at
market values, certain investments in shares of stock which are accounted for under the equity method, and certain fixed assets which are stated at revalued amounts.
The consolidated statements of cash flows present receipts and payments of cash and cash equivalents classified into operating, investing and financing activities. The cash flows from
operating activities are presented using the direct method. The reporting currency used in the preparation of the consolidated financial statements is the
Indonesian rupiah. Effective as of January 1, 2005, the Company adopted Indonesian Statement of Accounting
Standard PSAK No. 38 Revised 2004, “Accounting for Restructuring of Entities under Common Control” on a retroactive basis. This standard provides for the realization of the restructuring
difference to gain or loss if the conditions therein are fulfilled. The consolidated financial statements for the nine months ended September 30, 2004 have been restated for the retrospective recognition
of the restructuring differences amounting to Rp1,496,514,575,077. The restructuring differences were arising from the acquisition of PT Indofood Sukses Makmur Tbk.ISM’s shares, acquisition of
certain companies by ISM, sales of Bogasari’s net assets to ISM, acquisition of PT Indominco Mandiri and others. The Company has lost the common control status with the above companies,
and the related assets and the ownership in the above companies had been disposed. Therefore, in compliance with PSAK No. 38 Revised 2004 the restructuring differences were recognized
retrospectively by restated the 2003 and 2004 financial statements as follows:
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
10
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued a. Basis of Preparation of the Consolidated Financial Statements continued
2004 2003
Differences Arising from Restructuring Transactions Among Entities under Common Control
A previously reported 330,799,198,508 330,799,198,508
Adoption of PSAK No. 38 Revised 2004 1,496,514,575,077 1,496,514,575,077
As restated 1,165,715,376,569 1,165,715,376,569
Retained Earnings - Unappropriated A previously reported
1,511,088,739,055 1,420,065,312,497 Adoption of PSAK No. 38 Revised 2004
1,496,514,575,077 1,496,514,575,077 As restated
14,574,163,978 76,449,262,580
b. Principles of Consolidation
