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
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
c. Principles of consolidation continued
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: continued
• Recognizes any surplus or deficit in profit or loss; and
• Reclassifies the parent’s share of components previously recognized in other comprehensive income to profit
or loss or retained earnings, as appropriate. 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.
Profit or loss and each component of other comprehensive income “OCI” are attributed to the equity holders of the parent of the Group and to the Non-controlling interests “NCI”, even if this results in the NCI having a deficit
balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity,
income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
d. 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 Non-current Financial Assets”.
e. Restricted funds
Restricted funds represent funds obtained from the bank through the Company’s House Financing Credit facility “KPR” sales method which are restricted for use by the Group until gradual stages of completion of construction
are completed depending on agreement with related banks.
f. Transactions with related parties
