NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 516 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies continued
b.v. Withdrawal of SFAS 39 PPSAK 11- Accounting for Joint Operation continued The withdrawal of SFAS 39 effective on 1 January 2012, has changed the accounting treatment
of BOT transactions, which now follows SFAS 16 Revised 2011 - Fixed Asset and is applied retrospectively. There is no significant impact on the withdrawal of this SFAS to the Group’s
consolidated financial statements and therefore the impact to consolidated financial statements prior to 1 January 2012 was charged to the current year consolidated statement of
comprehensive income.
The adoption of these new and revised relevant standards and interpretations did not result in substantial changes to the Grup’s accounting policies and had no material effects on the amounts
reported for the current or prior financial periods:
- SFAS 10 Revised 2010 - The Effects of Changes in Foreign Exchange Rates
- SFAS 13 Revised 2011 - Investment Property
- SFAS 16 Revised 2011 - Fixed Assets
- SFAS 18 Revised 2010 - Accounting and Reporting by retirement Benefit Plans
- SFAS 24 Revised 2010 - Employee Benefits
- SFAS 26 Revised 2011 - Borrowing Costs
- SFAS 28 Revised 2010 - Accounting for Insurance
- SFAS 30 Revised 2011 - Rent
- SFAS 46 Revised 2010 - Income Taxes
- SFAS 50 Revised 2010 - Financial Instruments: Presentation
- SFAS 53 Revised 2010 - Share-based Payments
- SFAS 55 Revised 2011 - Financial Instruments: Recognition and Measurement
- SFAS 56 Revised 2011 - Earnings per share
- SFAS 61 - Accounting for Government Grants and Disclosure of Government Assistance
- SFAS 63 - Financial Reporting in Hyperinflationary Economics
- SFAS 64 - Activities of mining Exploration and Evaluation of Mineral Resources
- ISAK 13 - Hedges of Net Investment in Foreign Operation
- ISAK 15 - SFAS 24, The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction -
ISAK 19 - Applying the Restatement Approach under SFAS 63: Financial Reporting in Hyperinflationary Economics
- ISAK 20 - Income Tax - Changes in the Tax Status of an Entity or its Shareholders
- ISAK 23 - Rent-Incentives Operations
- ISAK 24 - Evaluating the Substance of Transactions Involving Some Form A Legal Rent
- ISAK 25 - Land Rights
- ISAK 26 - Reassessment of Embedded Derivative
Revocation of these SFAS and ISAK had no material impacts to the Group’s consolidated financial statements:
- SFAS 11 - Financial Statements of Foreign Currency
- SFAS 27 - Accounting for Cooperatives
- SFAS 29 - Accounting for Oil and Gas
- SFAS 44 - Accounting for Real Estate Development Activities
- SFAS 47 - Accounting for Land
- SFAS 52 - Accounting for Reporting Currency
- ISAK 4 - Alternative treatment Permitted on Foreign Exchanged, and
- ISAK 5 - Reporting Changes in Fair Value of Investment Securities Available for Sale Group
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 517 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments A. Financial assets
The Group classifies its financial assets in the following categories of a financial assets at fair value through profit and loss, b loans and receivables, c held-to-maturity financial assets, and
d available-for-sale financial assets. The classification depends on the purpose for which the financials assets were acquired. Management determines the classification of its financial assets
at initial recognition.
a Financial assets at fair value through profit or loss This category comprises two sub-categories: financial assets classified as held for trading,
and financial assets designated by the Group as at fair value through profit or loss upon initial recognition.
A financial asset is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term or if it is part of a portfolio of identified
financial instruments that are managed together and for which there is evidence of a recent actual pattern of short term profit-taking. Derivatives are also categorised as held for trading
unless they are designated and effective as hedging instruments.
A financial asset designated as fair value through profit or loss at inception are held to back the insurance liabilities of Subsidiary measured at fair value of the underlying assets.
Financial instruments included in this category are recognised initially at fair value; transaction costs are taken directly to the consolidated statement of income. Gains and
losses arising from changes in fair value and sales of these financial instruments are included directly in the consolidated statement of income and are reported respectively as
“Unrealised gainslosses from increasedecrease in fair value of financial instruments” and “Gainslosses from sale of financial instruments”. Interest income on financial
instruments held for trading are included in “Interest income”.
b Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market, other than: -
those that the Group intends to sell immediately or in the short term, which are classified as held for trading, and those that the Group upon initial recognition designates as at fair
value through profit or loss; -
those that the Group upon initial recognition designates as available for sale; or -
those for which the Group may not recover substantially all of its initial investment, other than because of loans and receivables deterioration.
