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DAro EnErgy 2013 AnnuAl rEporT
181
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 521
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
Ý
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
u. Employee benefits continued
i Post employment benefits continued
The liability recognised in the consolidated statement of financial position in relation to the defined benefit pension plans is the present value of the defined benefit obligation at the end of the year less the fair value of
plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit
method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using the interest rates of high quality corporate bonds that are denominated in the currency in
which the benefits will be paid, and that have terms of maturity approximating the terms of the related pension obligations. In countries where there is no deep market for such bonds, the market rates on government
bonds are used.
Expenses charged to profit or loss include current service costs, interest costs, amortisation of past service costs and actuarial gains and losses.
Past-service costs are recognised immediately in profit or loss, unless the changes to the pension plan are conditional on the employees’ remaining in service for a specified period of time the vesting period. In this
case, the past-service costs are amortised on a straight-line basis over the vesting period.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions, when exceeding 10 of the present value of the defined benefit obligation before deducting any plan assets or 10
of the fair value of any plan assets at the end of the year, are charged or credited to profit or loss over the average remaining service lives of the employees participating in the plan.
For defined contribution plans the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations
once the contributions have been paid. The contributions are recognised as employee benefit expenses when they become due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in the future payments is available.
ii Termination benefits
Termination benefits are payable when an employee’s employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these
benefits. The Group recognises termination benefits when it is demonstrably committed to a termination when the Group has a detailed formal plan to terminate the employment of current employees without possibility of
withdrawal. Benefits falling due more than 12 months after the end of the reporting year are discounted to their present value.
v. Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new shares are shown in equity as a deduction, net of tax,
from the proceeds.
182
Þßà
IABlE, STrong, EFFICIEnT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 522
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
á
S Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
w. Earnings per share
Basic earnings per share are calculated by dividing the profit for the year attributable to owners of the parent of the Company by the weighted-average number of ordinary shares outstanding during the year.
Diluted earnings per share are calculated by dividing the profit for the year attributable to owners of the parent of the Company adjusted for finance costs and foreign exchange gains or losses on convertible bonds and their
related tax effects, by the weighted-average number of issued and fully paid-up shares during the year, assuming that all options have been exercised and all convertible bonds have been converted.
x. Dividend distribution
Dividend distributions to the Company’s shareholders are recognised as liabilities in the consolidated financial statements in the year in which the dividends are declared by the Company.
y. Business combination of entities under common control
Business combination of entities under common control are accounted for using the pooling-of-interests method. The difference between the consideration received and the carrying value of each restructuring transaction among
entities under common control is recorded as part of additional paid-in capital in the equity section of the consolidated statement of financial position.
z. Revenue and expenses recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of coal, sales of electricity and services rendered in the ordinary course of the Group’s activities. Revenue is shown net of value added tax
“VAT”, returns, rebates and discounts and after eliminating intra-group sales.
i. Sales of coal
