NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
8 Rights to the Stockholders with the Issuance of Pre-emptive Rights, totaling 459,014,453 new
shares and a maximum of 229,507,226 Series I Warrants was declared effective. The Company listed all such new shares on the Indonesia Stock Exchange Notes 25 and 26.
In June 2008, the Company distributed 3,217,893,796 bonus shares with a par value of Rp100 full amount per share Notes 25 and 26.
In June 2010 and December 2009, 436,340,202 and 1,013,046 Series I Warrants were exercised, respectively Note 25.
c. Commissioners, Directors, Audit Committee and Employees
The composition of the Companys Boards of Commissioners and Directors as of 30 June 2012 is as follows:
Board of Commissioners
Directors
President Commissioner
: Soetjipto Nagaria President Director : Johanes Mardjuki
Commissioner : Harto Djojo Nagaria
Director : Liliawati Rahardjo
Independent Commissioner
: H. Edi Darnadi Director
: Lexy Arie Tumiwa Independent
Commissioner : Esther
Melyani Homan
Unaffiliated Director
: Lilies Yamin
Director :
Soegianto Nagaria
Director :
Herman Nagaria
Director : Yong King Ching
The composition of the Companys Boards of Commissioners and Directors as of 31 December 2011 is as follows:
Board of Commissioners
Directors
President Commissioner
: Soetjipto Nagaria President Director : Johanes Mardjuki
Commissioner : Harto Djojo Nagaria
Director : Liliawati Rahardjo
Independent Commissioner
: H. Edi Darnadi Director
: Lexy Arie Tumiwa Independent
Commissioner : Esther
Melyani Homan
Unaffiliated Director
: Lilies Yamin
Director :
Soegianto Nagaria
Director :
Herman Nagaria
Director : Yong King Ching
The composition of the Company’s Audit Committee as of 30 June 2012 and 31 December 2011 is as follows:
Chairman :
H. Edi Darnadi Member
: Poespita Pelangiwati
Member :
Esther Melyani Homan Salaries and other compensation benefits of the boards of Commissioners and Directors amounted
to approximately Rp15.6 billion and Rp13 billion respectively in 30 June 2012 and 30 June 2011. The Company and Subsidiaries had 1,405 and 1,391 permanent employee as of 30 June 2012 and
31 December 2011.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
13 liabilities, comparative information and consistency, and introduces new disclosures such as key
estimations and judgments, capital management, other comprehensive income, departures from accounting standards and statement of compliance.
The adoption of PSAK 1 Revised 2009 has significant impact on the related presentation and disclosures in the consolidated financial statements.
The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those applied in the preparation of the consolidated financial statements for the year
ended 31 December 2010, except for the adoption of several amended PSAKs effective 1 January 2011 as disclosed in this note
The consolidated financial statements have been prepared on the accrual basis using the historical cost concept of accounting, except for certain accounts which are measured on the basis described
in the related accounting policies for those accounts.
The consolidated statements of cash flows present cash flows 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 consolidated financial statements is the Indonesian rupiah Rp.
b. Principles of consolidation
From 1 January 2011
Effective 1 January 2011, the Company and Subsidiaries retrospectively adopted PSAK 4 Revised 2009, “Consolidated and Separate Financial Statements”, except for the following items that were
applied prospectively: i losses of a subsidiary that result in a deficit balance to non-controlling interests “NCI”; ii loss of control over a subsidiary; iii change in the ownership interest in a
subsidiary that does not result in a loss of control; iv potential voting rights in determining the existence of control; v consolidation of a subsidiary that is subject to long-term restriction.
PSAK 4 Revised 2009 provides for the preparation and presentation of consolidated financial statements for a group of entities under the control of a parent, and the accounting for investments
in subsidiaries, jointly controlled entities and associated entities when separate financial statements are presented as additional information.
As reflected herein, the adoption of PSAK 4 Revised 2009 has insignificant impact on the financial reporting including for the related disclosures in the consolidated financial statements.
All material intercompany transactions and account balances including the related significant unrealized gains or losses have been eliminated.
The consolidated financial statements include the accounts of the Company and Subsidiaries mentioned in Note 1d, in which the Company maintains directly or indirectly equity ownership of
more than 50.
Subsidiaries are fully consolidated from the date of acquisitions, being the date on which the Company obtains control, and continue to be consolidated until the date such control ceases.
Control is presumed to exist if the Company owns, directly or indirectly through Subsidiaries, more than half of the voting power of an entity. Control also exists when the Company owns half or less of
the voting power of an entity when there is:
a power over more than half of the voting rights by virtue of an agreement with other investors;
b bpower to govern the financial and operating policies of the entity under a statute or an agreement;
c power to appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the entity is by that board or body; or
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
14 d power to cast the majority of votes at meetings of the board of directors or equivalent
governing body and control of the entity is by that board or body. Losses of a non-wholly owned subsidiary are attributed to the NCI even if they create an NCI deficit
balance. In case of loss of control over a subsidiary, the Company:
derecognizes the assets including goodwill and liabilities of the subsidiary; derecognizes the carrying amount of any NCI;
derecognizes the cumulative 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 the consolidated statements of comprehensive income;
and reclassifies its share of components previously recognized in other comprehensive income
to profit or loss or retained earnings, as appropriate. NCI represent the portion of the profit or loss and net assets of the Subsidiaries not attributable,
directly or indirectly, to the Company, which are presented in the 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 owners of the Company.
Prior to 1 January 2011
The proportionate shares of minority stockholders in net assets and net income or loss of the consolidated subsidiaries were previously presented as “Minority Interests” 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
interests were absorbed by the Company as the majority stockholder, 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 Company, until the
minority interests’ share of losses previously absorbed by the Company was recovered.
Effective 1 January 2011, the Company applied PSAK 15 Revised 2009, “Investments in Associates”. This PSAK is applied retrospectively and prescribes the accounting for investments in
associates in relation to the determination of significant influence, accounting method to be applied, impairment in value of investments and separate financial statements. The adoption of this PSAK
has no significant impact on the consolidated financial statements.
c. Business combination
Effective 1 January 2011, the Company and Subsidiaries prospectively adopted PSAK 22 Revised 2010, “Business Combinations”, applicable for business combinations that occur on or after the
beginning of a financial yearperiod commencing on or after 1 January 2011.
PSAK 22 Revised 2010 stipulates the nature of transaction or other event that meets the definition of a business combination to improve the relevance, reliability and comparability of the information
that a reporting entity provides in its financial statements about a business combination and its effects.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
15 In accordance with the transitional provisions of PSAK 22 Revised 2010, starting 1 January 2011,
the Company and Subsidiaries: ceased the goodwill amortization Note 18;
eliminated the carrying amount of the related accumulated amortization of goodwill; and performed an impairment test of goodwill in accordance with PSAK 48 Revised 2009,
“Impairment of Assets”. The adoption of PSAK 22 Revised 2010 has insignificant impact on the financial reporting,
including for the related disclosures in the consolidated financial statements.
From 1 January 2011
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition-date fair value
and the amount of any NCI in the acquiree. For each business combination, the acquirer measures the NCI in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable
net assets. Acquisition costs incurred are directly expensed and included in administrative expenses.
When the Company and Subsidiaries acquire a business, it assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the
contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree
If the business combination is achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date
through profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is
deemed to be an asset or liability, will be recognized in accordance with PSAK 55 Revised 2006 either in profit or loss or as other comprehensive income. If the contingent consideration is classified
as equity, it should not be remeasured until it is finally settled within equity.
At acquisition date, goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognized for NCI over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than the fair value of the identifiable net assets of the subsidiary acquired, the difference is recognized in profit or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Company and Subsidiaries’ cash-generating units “CGUs” that are expected to benefit from the combination, irrespective of whether other assets or liabilities of
the acquiree are assigned to those CGUs.
Where goodwill forms part of a CGU and part of the operations within that CGU is disposed of, the goodwill associated with the operations disposed of is included in the carrying amount of the
operations when determining the gain or loss on disposal of the operations. Goodwill disposed of in this circumstance is measured based on the relative values of the operations disposed of and the
portion of the CGU retained.
Prior to 1 January 2011
In comparison to the above, the following were the accounting policies applied on business combination prior to 1 January 2011:
i. business combinations were accounted for using the purchase method. Transaction costs directly attributable to the acquisition formed part of the acquisition costs. The NCI formerly
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
16 known as minority interest was measured at the book value of the proportionate share of the
acquiree’s identifiable net assets; ii. business combinations achieved in stages were accounted for as separate steps. Any
additional acquired equity interest did not affect previously recognized goodwill; iii. when the Company and Subsidiaries acquired a business, embedded derivatives separated
from the host contract by the acquiree were not reassessed on acquisition unless the business combination resulted in a change in the terms of the contract that significantly modified the
cash flows that otherwise would have been required under the contract;
iv. contingent consideration was recognized if, and only if, the Company and Subsidiaries had a
present obligation, the economic outflow was more likely than not and a reliable estimate was determinable. Subsequent adjustments to the contingent consideration were recognized as part
of goodwill.
d. Interest in joint ventures
SCK has interests in joint ventures, which are jointly controlled entities, known as KSO Summarecon Serpong KSO SS, between SCK and PT Jakartabaru Cosmopolitan JBC; and KSO Summarecon
Lakeview KSO LV, among SCK, PT Telaga Gading Serpong TGS and PT Lestari Kreasi LK, whereby the ventures have contractual arrangements that establish joint control over the economic
activities of the entities. The agreements require unanimous agreements for financial and operating decisions among the venturers.
In accordance with PSAK 12 Revised 2009, “Interests in Joint Ventures”, SCK’s participation in the joint operation has been accounted for in the consolidated financial statements using the
proportionate consolidation method. In applying the proportionate consolidation method, the venturer combines its proportionate share in the assets and liabilities of the joint venture and its interests in
the joint venture revenues and expenses with the related accounts in the consolidated financial statements.
e. Cash equivalents
Time deposits with maturities of three months or less at the time of placement, which are not restricted as to withdrawal or are not pledged as collateral for loans, are classified as “Cash
Equivalents”. Cash in banks and time deposits which are restricted or pledged are presented as part of “Other Assets”.
f. Investments in associated companies
Effective 1 January 2011, the Company applied PSAK 15 Revised 2009, “Investments in Associated Companies”. This revised PSAK is applied retrospectively and prescribes the accounting
for investments in associated companies in relation to the determination of significant influence, accounting method to be applied, impairment in value of investments and separate financial
statements. The adoption of this revised PSAK has no significant impact on the consolidated financial statements.
Investment in associated company is accounted for using the equity method. An associated company is an entity in which the Company or any of the Subsidiaries has significant influence.
Under the equity method, the cost of investment is increased or decreased by the Company’s share in net earnings or losses of, and dividends received from, the associated company since the date of
acquisition
The consolidated statements of comprehensive income reflect the Company’ equity in the net income of the associated company. Where there has been a change recognized directly in the
equity of the associated company, the Company recognizes its share of any such change and discloses this, when applicable, in the consolidated statements of changes in equity. Unrealized
gains and losses resulting from transactions between the Company and the associated company are eliminated to the extent of the Company’s interest in the associated company.
The Company determines whether it is necessary to recognize an additional impairment loss on the
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
17 Company’s investment in its associated company. The Company determines at each reporting date
whether there is any objective evidence that the investment in the associated company is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the
recoverable amount of the investment in associated company and its carrying value, and recognizes the amount in the consolidated statements of comprehensive income.
g. Allowance for impairment of receivables
Prior to 2010, allowance for impairment was provided based on a review of the status of the individual trade receivables at the end of the year. Starting 2010, the allowance, if any, is determined
based on the policies outlined in Note 2w.
h. Transactions with related parties
Effective 1 January 2011, the Company and Subsidiaries applied PSAK 7 Revised 2010, “Related Party Disclosures”. This revised PSAK requires disclosure of related party relationships, transactions
and outstanding balances, including commitments, in the consolidated and separate financial statements of a parent, and also applies to individual financial statements. The adoption of this
revised PSAK has insignificant impact on the related disclosures in the consolidated financial statements.
The details of the accounts and the significant transactions entered into with related parties are presented in Note 33.
i. Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is determined by the specific identification method.
The cost of land under development consists of cost of undeveloped land, direct and indirect development costs related to real estate development activities and borrowing costs. Land under
development is transferred to landplots available for sale when the land development is completed. Total project cost is allocated proportionately to the saleable landplots based on their respective
areas.
The cost of land development, including land which is used for roads and infrastructure or other unsaleable area, is allocated to the saleable area.
The cost of buildings and apartments under construction is transferred to houses, shops and apartments strata title available for sale when the construction is substantially completed.
For residential property project, its cost is classified as part of inventories upon the commencement of development and construction of infrastructure. For commercial property project, upon the
completion of development and construction of infrastructure, its cost remains as part of inventories or is reclassified to the related fixed asset account, whichever is more appropriate.
Other inventories, consisting of food, beverages and other inventories, are stated at cost or net realizable value, whichever is lower. Cost is determined using the first-in, first-out method FIFO.
j. Prepaid expenses
Prepaid expenses are amortized over their beneficial periods.
k. Undeveloped land
Undeveloped land is stated at cost or net realizable value, whichever is lower. The cost of undeveloped land, consisting of pre-acquisition and acquisition cost of land, is
transferred to land under development upon commencement of land development.
l. Fixed assets
Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any, except for
