PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued w. Financial instruments continued
vi. Impairment of financial assets continued
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Loans and receivables continued Loans and receivables, together with the associated allowance, are written off when there
is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Company and Subsidiaries. If, in a subsequent year, the amount of the
estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or
reduced by adjusting the allowance for impairment account. If a future write-off is later recovered, the recovery is recognized in profit or loss.
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Available-For-Sale AFS financial assets In the case of equity investment classified as an AFS financial asset, objective evidence
would include a significant or prolonged decline in the fair value of the investment below its cost.
Where there is objective evidence of impairment, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss
on that investment previously recognized in profit or loss - is removed from other comprehensive income and recognized in profit or loss. Impairment losses on equity
investment are not reversed through profit or loss; increases in the equity investment’s fair value after impairment are recognized directly in other comprehensive income.
vii. Derecognition of financial assets and liabilities Financial Assets
A financial asset or where applicable, a part of a financial asset or part of a group of similar financial assets is derecognized when: 1 the rights to receive cash flows from the asset
have expired, or 2 the Company or Subsidiaries have transferred their rights to receive cash flows from the asset or have assumed an obligation to pay the received cash flows in full
without material delay to a third party under a “pass-through” arrangement, and either a the Company or Subsidiaries have transferred substantially all the risks and rewards of the
financial asset, or b the Company or Subsidiaries have neither transferred nor retained substantially all the risks and rewards of the asset, but have transferred control of the asset.
Financial Liabilities A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or has expired. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as an extinguishment of the original liability and the
recognition of a new liability and the difference in the respective carrying amounts is recognized in profit or loss.
