NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
20 comprehensive income under expense categories that are consistent with the functions of the
impaired assets.
p. Stock issuance costs
Costs incurred in connection with the issuance of capital stock are presented as a deduction to
additional paid-in-capital.
q. Revenue and expense recognition
Revenues from real estate sales are recognized in accordance with PSAK 44 on “Accounting for Real Estate Activities”, as follows:
1 Revenues from sales of houses, shops and other similar property and related land are recognized under the full accrual method if all of the following conditions are met:
1. A sale is consummated.
2. The selling price is collectible.
3. The seller’s receivable is not subject to future subordination to other loans which will be obtained by the buyer.
4. The seller has transferred to the buyer the usual risks and rewards of ownership in a transaction that is in substance a sale and does not have a substantial continuing
involvement with the property. 2 Revenues from sales of landplots that do not require the seller to construct the building are
recognized under the full accrual method if all of the following conditions are met: 1. Total payments by the buyer are at least 20 of the agreed selling price and the amount
is not refundable. 2. The selling price is collectible.
3. The receivable is not subordinated to other loans that will be obtained by the buyer. 4. The land development process is complete so that the seller has no further obligations
related to the landplots sold. 5. Only the landplots are sold, without any requirement for the seller’s involvement in the
construction of the building on the landplots. 3 Revenues from sales of apartments, the construction of which has not been completed, are
recognized using the percentage-of-completion method if all of the following conditions are met:
1. The construction process has already commenced, that is the building foundation has been completed and all of the requirements to commence construction have been fulfilled.
2. Total payments by the buyer are at least 20 of the agreed selling price and the amount is
not refundable. 3.
The amount of revenue and the cost of the property can be reliably estimated. If any of the above conditions is not met, the payments received from the buyer are recorded as
deposits received until all of the criteria are met. The method used to determine the percentage of completion is the proportion of actual costs
incurred to the estimated total development cost of the real estate project. Rental and membership fees in sports club are recognized as income over the period of rental or
membership. Rental and membership fees received in advance are presented as “Unearned Revenues”. Revenues from restaurant operations are recognized when the goods are delivered or
when the services have been rendered.
Revenue from hotel room occupancy is recognized on the basis of the period of occupancy.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and
For the period of six months ended 30 June 2012 and 2011 unaudited
Expressed in thousand of rupiah, unless otherwise stated
21 Revenue from other hotel services is recognized when the services are rendered or the goods are
delivered. Expenses are recognized when incurred.
r. Employee benefits
The Company and Subsidiaries have defined contribution pension plans covering substantially all of their eligible employees and have recognized their unfunded employee benefits liability in
accordance with Labor Law No. 132003 dated March 25, 2003 “the Law” and PSAK 24 Revised 2004, “Employee Benefits”. The benefits under the Law have been calculated by comparing the
benefits that will be received by an employee at normal pension age from the Pension Plan with the benefits as stipulated under the Law, after deducting the accumulated employee contributions and
the related investment results. If the employer-funded portion of the Pension Plan benefit is less than the benefit as required by the Law, the Company and Subsidiaries provide for such shortfall.
Under PSAK 24 Revised 2004, the cost of providing employee benefits under the Law is determined using the projected-unit-credit method. Actuarial gains or losses are recognized as
income or expenses when the net cumulative unrecognized actuarial gains or losses for each individual plan at the end of the previous reporting year exceed the greater of 10 of the present
value of the defined benefit obligation at that date and 10 of the fair value of plan assets at that date. These gains or losses are recognized on a straight-line basis over the expected average
remaining working lives of the employees. Further, past service costs arising from the changes in the benefits payable of an existing plan are required to be amortized over the period until the
benefits concerned become vested.
s. Foreign currency transactions and balances
Transactions involving foreign currencies are recorded at the rates of exchange prevailing at the time the transactions are made. At consolidated statement of financial position date, monetary
assets and liabilities denominated in foreign currencies are adjusted to reflect the prevailing rates at such date, and the resulting gains or losses are credited or charged to current operations.
As of June 2012 and 31 December 2011, the rates of exchange used were as follows: 2012 2011
Full amounts Full amounts
1 European euro Euro 11,801
11,739 1 United States dollar US
9,480 9,068
1 Singapore dollar Sin 7,415
6,974 Transactions in other foreign currencies are considered not significant.
t. Income tax
Based on Government Regulation No. 5 dated 23 March 2002, income from shopping center rental is subject to a final tax of 10, except for income on rental contracts signed prior to such regulation
which is subject to 6. On 4 November 2008, the President of the Republic of Indonesia and the Minister of Law and Human Rights signed Government Regulation No. 712008 PP No. 712008 on
“the third changes on PP No. 481994 regarding payment of income tax on income from transfer rights on land andor building”. This regulation provides that, effective 1 January 2009, the income of
a taxpayer from transactions of transferring rights on land andor building, will be subjected to final tax of 5.
