PT SAMPOERNA AGRO Tbk FORMERLY PT SELAPAN JAYA AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended March 31, 2007
and Year Ended December 31, 2006 With Comparative Figures for 2005 and 2004
Expressed in thousands of Rupiah, unless otherwise stated
14
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued o. Corporate income tax continued
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates and tax laws that
have been enacted or substantively enacted at the balance sheet date. Amendments to tax obligations are recorded when an assessment is received or, if appealed
against by the Group, when the result of the appeal is determined.
p. Provision for employee service entitlements
The Group has applied Statement of Financial Accounting Standards SFAS No. 24 Revised 2004, “Employees’ Benefits” to recognize employee benefits liabilities in accordance with Labor
Law No. 132003 dated March 25, 2003 the Law. This statement requires the Company to provide all employee benefits under formal and informal plans or agreements, under legislative
requirements or through industry arrangements, including post-employment benefits, short-term and other long-term employee benefits, termination benefits and equity compensation benefits.
The calculation of liability of employees benefits based on the Law is determined using the “Projected Unit Credit” actuarial method. Actuarial gains or losses are recognized as income or
expense when the net cumulative unrecognized actuarial gains and losses at the end of the previous reporting year exceeded 10 of the defined benefit obligation at that date. These gains
or losses are recognized on a straight-line basis over the expected average remaining working lives of the employees.
q. Transactions with related parties The Group have transactions with entities which are regarded as having a special relationship as
defined under SFAS No. 7, “Related Party Disclosure”. Significant transactions with related parties, whether or not conducted under normal terms and conditions similar to those with non-
related parties are disclosed in the notes to consolidated financial statements.
r. Use of estimates The preparation of consolidated financial statements in conformity with generally accepted
accounting principles requires management to make estimations and assumptions that affect amounts reported therein. Due to the inherent uncertainty in making estimates, actual results
reported in future periods may be based on amounts that differ from those estimates.
s. Restructuring under common control Restructuring transactions of entities under common control are accounted for in accordance with
PSAK No. 38, “Accounting for Restructuring of Entities under Common Control”. Under this standard, transactions between entities under common control are carried out within the
framework of reorganizing entities under the same group and does not constitute a change of ownership based on the economic substance of such transactions, thus, no gain or loss is
recognized in the group or to the individual entity within the same group. The underlying object of the restructuring transaction must be recorded at its book value and such transaction is accounted
for as a business combination using the pooling-of-interests method. Under the pooling-of-interest method, the financial statements of the restructured company is presented as if the acquired
entity had been combined at the beginning of the earliest period presented.
PT SAMPOERNA AGRO Tbk FORMERLY PT SELAPAN JAYA AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended March 31, 2007
and Year Ended December 31, 2006 With Comparative Figures for 2005 and 2004
Expressed in thousands of Rupiah, unless otherwise stated
15
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
