PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 520
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
u. Employee benefits continued
i Post employment benefits continued
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions, in excess of the greater of 10 of the fair value of plan assets or 10 of the present value of the defined benefit obligation, are
charged or credited to profit or loss over the employees expected average remaining working lives. For defined contribution plans the Group pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expenses when they
become due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
ii Termination benefits
Termination benefits are payable when an employee’s employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The
Group recognises termination benefits when it is demonstrably committed to a termination and the entity has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal.
Benefits falling due more than 12 months after the end of the reporting year are discounted to their present value.
v. Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from
the proceeds.
w. Earnings per share
Basic earnings per share are calculated by dividing the profit for the year attributable to the equity holders of the Company by the weighted-average number of ordinary shares outstanding during the year.
Diluted earnings per share are calculated by dividing the profit for the year attributable to owners of the parent of the Company adjusted for finance costs and foreign exchange gains or losses on convertible bonds and their related tax
effects, by the weighted-average number of issued and fully paid-up shares during the year, assuming that all options have been exercised and all convertible bonds have been converted.
x. Dividend distributions
