PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued v. Income tax continued
Final income tax The differences between the carrying amounts of existing assets or liabilities related to the final
income tax and their respective tax bases are not recognized as deferred tax assets or liabilities. The difference between the final income tax paid and the amount charged as final income tax
expense in the consolidated statements of comprehensive income is recognized as prepaid tax or tax payable.
Non-final income tax Income tax expense represents the sum or the net amount of the current corporate income tax,
including final income tax, and deferred tax. Current Tax
Current income tax assets and liabilities for the current year are measured at the amount expected to be recovered from or paid to the taxation authority. The tax rates and tax laws used to compute
the amount are those that have been enacted or substantively enacted as at the reporting dates.
Taxable profit differs from profit as reported in the consolidated statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other
years and it futher excludes items that are never taxable or deductible.
Deferred Tax Deferred tax is provided using the liability method on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary differences, except for the deferred tax liability arising from:
i. the initial recognition of goodwill; or
ii. an asset or liability in a transaction that is: 1 not a business combination; and 2 at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
Deferred tax assets are recognized for all deductible temporary differences and carry-forward of unused tax losses, to the extent that it is probable that taxable profits will be available against
which deductible temporary differences, and the carry-forward of unused tax losses can be utilized, unless the deferred tax asset arises from the initial recognition of an asset or liability in a
transaction that is:
i. not a business combination; and
ii. at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. Deferred tax liabilities are recognized in respect of taxable temporary differences associated with
investments in subsidiaries and associates, except where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future.
The carrying amount of a deferred tax asset is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the benefit of that deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable
that future taxable profit will allow the deferred tax assets to be recovered.
