SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Principles of Consolidation continued
In case of loss of control over a Subsidiary, the Group: - Derecognizes the assets including goodwill and liabilities of the Subsidiary;
- Derecognizes the carrying amount of any NCI; - Derecognizes the cummulative translation differences, recorded in equity, if any;
- Recognizes the fair value of the consideration received; - Recognizes the fair value of any investment retained;
- Recognizes any surplus or deficit in profit or loss; and - Reclassifies the parents share of components previously recognized in other comprehensive income to profit or loss or
retained earnings, as appropriate. NCI represents the portion of the profit or loss and net assets of the Subsidiaries not attributable, directly or indirectly, to the
Entity, which are presented in consolidated statements of comprehensive income and under the equity section of the consolidated statements of financial position, respectively, separately from the corresponding portion attributable to the
equity holders of the parent entity.
Prior to January 1, 2011 The proportionate share of the minority shareholders in net assets and net income or loss of the consolidated Subsidiaries
were previously presented as minority interests in net assets of Subsidiaries in the consolidated statements of financial position and as minority interests in net loss income of Subsidiaries in the consolidated statements of comprehensive
income.
The losses applicable to the minority interests in a Subsidiary may have exceeded the minority interests in the equity of the Subsidiary. The excess and any further losses applicable to the minority interest were absorbed by the Entity as the majority
shareholder, except to the extent that the minority interests had other long-term interest in the related Subsidiary or had binding obligations for, and were able to make good of, the losses. If the Subsidiary subsequently reported profits, all such
profits were allocated to the majority interest holder, in this case, the Entity, until the minority interests share of losses previously absorbed by the Entity were recovered.
c. Foreign Currency Translation
Transactions and balances The Entity maintains its accounting records in Rupiah. Transactions in foreign currencies are recorded at the prevailing rates
of exchange in effect on the date of the transactions. At the statements of financial position dates, all foreign currency monetary assets and liabilities are translated in the Rupiah
currency using prevailing middle rate of Bank Indonesia on that date. The net foreign exchange gains or losses arise as the result of assets and liabilities translation in foreign currency recognized.
Exchange rates used as of December 31, 2011 and 2010 are as follows:
2011 2010
United States Dollar 1Rupiah full amount 9,068
8,991 EURO 1Rupiah full amount
11,739 11,956
Hongkong Dollar 1Rupiah full amount 1,167
1,155 Singapore Dollar 1Rupiah full amount
6,974 6,981
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c. Foreign Currency Translation continued
Translation of the financial statements of foreign Subsidiary Companies The financial statements of foreign Subsidiary companies are translated into Rupiah as follows:
• Assets and liabilities are translated at prevailing rates of exchange at statements of financial position dates. • Items in the statements of comprehensive income are translated with monthly weighted average of middle rates of
exchange during the year. • Equity is translated using the historical rates of exchange.
• Resulting exchange differences are recorded directly against shareholders’ interest, as “Exchange difference due to financial statement translations”.
d. Revenue and Expenses Recognition
Revenue is recognized to the extent when it is probable that the economic benefits will flow to the Entity and its Subsidiaries and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is
recognized: • Sale of goods
Revenue is recognized when the significant risk and rewards of ownership of the goods have been passed to the buyer. • Rendering of services
Revenue is recognized by reference to the stage of completion of the transaction at the consolidated statements of financial position dates and there is no significant uncertainties remain considering any associated cost.
• Interest Income is recognized as the interest accrues taking into account the effective yield on the related asset, unless
collectability is in doubt. • Expenses are recognized when incurred accrual basis.
e. Cash and Cash Equivalents
