144
Adaro Energy Annual Report 2008 www.adaro.com
Adaro in Summary From Us to You
Running Adaro Management Report
Owning Adaro
PT ADARO ENERGY Tbk Schedule 512
FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
w. Difference in value from restructuring transactions of entities under common control continued
The balance of the account “difference in value from restructuring transactions of entities under common control” can change when:
i there are reciprocal transactions between entities under common control; ii
there is quasi-reorganisation; iii under common control status is lost between transacting entities; or
iv there is a transfer of the assets, liabilities, equity or other ownership instruments that caused the difference from restructuring transactions of entities under common to another party that is not under common control.
When changes in the balance of this account result from point i, the existing balance is netted-off with the new transaction, hence creating a new balance for the account.
When changes in the balance of the account come from point ii, then the balance is used to eliminate or add to the nega tive retained earnings balance.
When changes in the balance of the account come from points iii or iv, then the balance is recognised as realised gain or loss.
x. Dividends
Dividend distribution to the Group’s shareholders is recognised as a liability in the Group’s consolidated financial statements in the period in which the dividends are declared.
y. Use of estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current
events and activities, actual results could differ from those estimates.
3. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES
a. Acquisition of PT Saptaindra Sejati
On 17 December 2007, SIS increased its issued and paid in capital through the issuance of new shares. The Company acquired all 209,250 shares issued at par value of Rp 1,000,000 full amount per share, and the Company’s interest in SIS
increased from 28.57 to 71.78. The restructuring transaction of 17 December 2007 was accounted for using the pooling-of-interests method as required under
the Statement of Financial Accounting Standards No. 38 Revised 2004, “Accounting for Restructuring of Entities under Common Control” “SFAS No. 38 Revised 2004”, since the Company and SIS are entities under common control. Details of
the book value of net assets acquired and the difference arising from this restructuring transaction of entities under common control are as follows:
2007
Purchase consideration through cash payment 209,250
Book value of net assets acquired 272,235
Difference in value from restructuring transactions of entities under common control 62,985
On 31 March 2008, SIS increased its issued and paid in capital through the issuance of 56,679 new shares for the conversion of all convertible bonds issued to Joyce Corner International Ltd “Joyce”, and the difference between the converted bonds
and par value was recorded as additional paid-in capital. As a result of this new share issue, the Company’s interest in SIS decreased from 71.78 to 61.68.
On 3 April 2008, the Company increased its ownership in SIS through the acquisition of the shares of PCI, SRIS and CSP, amounting to 39,036 shares, 39,035 shares and 19,517 shares, respectively, with the total acquisition amount of Rp 158,776.
From these transactions, the Company’s interest in SIS increased from 61.68 to 85.92.
Adaro Energy Annual Report 2008 www.adaro.com
145
Contact Us Governing Adaro
Financial Report Corporate Social Responsibility
PT ADARO ENERGY Tbk Schedule 513
FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated
3. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES continued
a. Acquisition of PT Saptaindra Sejati continued
The restructuring transactions on 3 April 2008 between the Company, PCI and SRIS, were accounted for using the pooling-of- interests method as required under SFAS No. 38 Revised 2004, since the Co mpany, PCI and SRIS are entities under
common control. The details of the book value of the net assets acquired and the difference arising from the restructuring transaction of entities under common control are as follows:
2008
Purchase consideration through cash payment 127,022
Book value of net assets acquired 115,407
Difference in value from restructuring transactions of entities under common control 11,615
The details of net assets acquired from the transaction with CSP and the adjustme nt to fixed assets acquired are as follows:
2008
Purchase consideration through cash payment 31,754
Book value of net assets acquired 28,850
Adjustment to fixed assets 2,904
Goodwill -
b. Acquisition of PT Alam Tri Abadi
On 3 January 2008, ATA increased its issued and paid in capital through the issuance of 1,500,000 new shares with a par value of Rp 1,000,000 full amount per share. The Company acquired all the new shares issued, and the Company’s interest
in ATA increased from 49.99 to 92.02. The restructuring transaction of 3 January 2008 was accounted for using the pooling-of-interests method as required under
SFAS No. 38 Revised 2004, since the Company and ATA are entities under common control. Details of the book value of net assets acquired and the difference arising from this restructuring transaction of entities under common control are as follows:
2008
Purchase consideration through cash payment 1,500,000
Book value of net assets acquired 1,462,282
Difference in value from restructuring transactions of entities under common control 37,718
On 15 July 2008, ATA increased its issued and paid in capital through the issuance of 10,863,438 new shares with a par value of Rp 1,000,000 full amount per share. The Company acquired all the new shares issued for Rp 10,863,438, and the
Company’s interest in ATA increased from 92.02 to 98.87. The restructuring transaction of 15 July 2008 was accounted for using the pooling-of-interests method as required under
SFAS No. 38 Revised 2004, since the Company and ATA are entities under common control. The details of the book value of net assets acquired and the difference arising from this restructuring transaction of entities under common control are as
follows:
2008
Purchase consideration through cash payment 10,863,438
Book value of net assets acquired 10,872,310
Difference in value from restructuring transactions of entities under common control 8,872
On 15 July 2008, the Company increased its ownership in ATA through the acquisition of the shares of SRIS and PCI in ATA, amounting to 94,951 shares and 47,477 shares, respectively, with a total acquisition amount of Rp 356,000. Through these
transactions, the Company’s interest in ATA increased from 98.87 to 100.00.
