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
17
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
b. Changes in accounting policies
The Group had adopted amendment of accounting standards which effective from January 1, 2016 that are considered relevant to the consolidated financial statements as follows: continued
• PSAK No. 68 2015 Improvement: Fair Value Measurement. The improvement clarifies that the
portfolio exception in PSAK No. 68 can be applied not only to financial assets and financial liabilities, but also to other contracts within the scope of PSAK No. 55, “Financial Instruments: Recognition and
Measurement”.
• ISAK No. 31: Interpretation of scope for PSAK No. 13: Investment property. ISAK No. 31 provides
interpretation to building characteristic which has been used as a part of investment property definition on PSAK No. 13.
The adoption of the above PSAKs, do not have significant impact to the financial reporting and disclosure in the consolidated financial statements, except for the implementation of ISAK No. 31 which provides a significant
impact on the consolidated financial statements Notes 9 and 10.
c. Principles of consolidation
The consolidated financial statements include the subsidiary accounts owned by the Company with the equity ownership of more than 50, either directly or indirectly through another subsidiary as disclosed in Note 1d.
All material intercompany accounts and transactions including unrealized gains or losses have been eliminated. A Subsidiary is fully consolidated from the date of acquisition, being the date on which the Company obtains
control, and continues to be consolidated until the date such control ceases. Specifically, the Group controls an investee if and only if the Group has:
a Power over investee i.e., existing rights that give it the current ability to direct the relevant activities of the investee;
b Eksposure, or rights, of variable returns from its involvement to investee; and c The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
a The contractual arrangement with the other vote holders of the investee b Rights arising from other contractual arrangements
c The Group’s voting rights and potential voting rights. Non-controlling interests “NCI” represent the portion of the profit or loss and net assets of the Subsidiaries not
attributable, directly or indirectly, to the Parent Entity, which are presented in the consolidated statement of profit or loss and other comprehensive income and under the equity section of the consolidated statement of financial
position, respectively, separately from the corresponding portion attributable to owners of the parent entity. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the period are included in the consolidated statements of profit or loss and other comprehensive income from the date the Group gains control until the date
the Group ceases to control the subsidiary. Losses of a non-wholly owned Subsidiary are attributed to the NCI even if the losses 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;
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
18
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
