PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED p. Revenue and expense recognition continued
Rental and membership fees in sports club are recognized as income over the period of rental or membership. Rental and membership fees received in advance are presented as “Unearned Revenues”. Revenues from restaurant
operations are recognized when the goods are delivered or when the services have been rendered. Revenue from hotel room occupancy is recognized on the basis of the period of occupancy. Revenue from other hotel
services is recognized when the services are rendered or the goods are delivered to the customer. Revenues from medical services are recognized at the point of sale or upon delivery of services to the patients.
The elements of costs which are capitalized to real estate development projects include the pre-acquisition cost of
land, cost of land acquisition and other costs attributable to the development activity of real estate. The costs are allocated to real estate development projects using either the saleable area method or the sales value method.
Costs which are not clearly related to a real estate project, such as general and administrative expenses, are recognized as an expense as they are incurred.
If a certain project is estimated to generate a loss, a provision must be recognized for the amount of the loss. The revision of estimated costs or revenues, if any, which are generally attributed to real estate development activities
must be allocated to ongoing and future projects. Revisions resulting from current period and prior period adjustments are recognized in the current period profit and loss, while revisions related to future periods are allocated to the
remaining period of development.
q. Employee benefits
Short-term employee benefits The Group recognizes short-term employee benefits liability if any when services are rendered and the
compensation for such services are to be paid within twelve months after such services are rendered. Post-employment benefits
The Group recognized an unfunded employee benefits liability in accordance with Labor Law No.132003 dated March 25, 2003 the “Law” and PSAK No. 24 2013, “Employee Benefits”. Under the Law, the Group is required to pay
separation, appreciation and compensation benefits to its employees if the conditions specified in the Law are met. The Group also has a defined contribution plan covering substantially all of its eliglible employees. The benefits under
the Law have been calculated by comparing the benefits that will be received by an employee at normal pension age from the Pension Plan with the benefits as stipulated under the Law, after deducting the accumulated employee
contribution and the related investment results. If the employer-funded portion of the Pension Plan benefit is less than the benefit as required by the Law, the Group will provide for such shortfall.
Pension costs under the Group’s defined benefit pension plans are determined by periodic actuarial calculation using the projected-unit-credit method and applying the assumptions on discount rate, expected return on plan assets and
annual rate of increase in compensation. All re-measurements, comprising of actuarial gains and losses, and the return of plan assets excluding net interest
are recognized immediately through other comprehensive income in order for the net pension asset or liability recognized in the interim consolidated statement of financial position to reflect the full value of the plan deficit and
surplus. Re-measurements are not reclassified to profit or loss in subsequent periods. All past service costs are recognized at the earlier of when the amendmentcurtailment occurs and when the related
restructuring or termination costs are recognized. As a result, unvested past service costs can no longer be deferred and recognized over the future vesting period.
PT SUMMARECON AGUNG Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2017 and for the Six-Month Periods Then Ended Expressed in thousands of Indonesian Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED r. Foreign currency transactions and balances
The company’s consolidated financial statements are presented in Rupiah, which is also the Parent Company’s functional currency. Each subsidiary determine its own functional currency and items included in the financial
statements of each entity are measured using that functional currency. Transaction in foreign currencies are initialy recorded by the Group at their respective functional currency rates
prevailing at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are adjusted to reflect the average of the selling and buying rates of exchange prevailing at the last banking transaction date of the
period, as published by Bank Indonesia and any resulting gains or losses are credited or changed to operations of the current period.
As of June 30, 2017 and December 31, 2016, the rates of exchange used were as follows:
Foreign Currencies June 30, 2017
Full Amount December 31, 2016
Full Amount
1 European euro Euro 14,875
14,162 1 United States dollar US
13,319 13,436
1 Singapura dollar Sin 9,591
9,299 Transactions in other foreign currencies are considered not significant.
s. Provisions
