PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. New and revised accounting standards and interpretations continued
The following new standards and amendments to existing standards have been published and are mandatory for the Group’s consolidated financial statements for periods beginning on or after 1 January 2015:
- SFAS No. 1 Revised 2013, “Presentation of Financial Statements”
- SFAS No. 4 Revised 2013, “Separate Financial Statements”
- SFAS No. 15 Revised 2013, “Investments in Associates and Joint Ventures”
- SFAS No. 24 Revised 2013, “Employee Benefits”
- SFAS No. 46 Revised 2014, “Income Taxes”
- SFAS No. 48 Revised 2014, Impairment of Assets
- SFAS No. 50 Revised 2014, “Financial Instruments: Presentation”
- SFAS No. 55 Revised 2014, “Financial Instruments: Recognition and Measurement”
- SFAS No. 60 Revised 2014, “Financial Instruments: Disclosures”
- SFAS No. 65, “Consolidated Financial Statements”
- SFAS No. 66, “Joint Arrangements”
- SFAS No. 67, “Disclosure of Interests in Other Entities”
- SFAS No. 68, “Fair Value Measurement”
- IFAS No. 26 Revised 2014, Reassessment of Embedded Derivatives
Upon the application of SFAS No. 24 Revised 2013, “Employee Benefits”, all actuarial gainslosses of the Group’s post-employment benefit obligations will have to be recognised immediately in other comprehensive income. The
Group’s current accounting policy of deferring the recognition of unrecognised actuarial gainslosses using the corridor method will no longer be permitted. As such, the Group expects a change to the balance of post-employment
benefit obligations. Management is still quantifying the full impact of the application of SFAS No. 24 Revised 2013.
As at the issuance date of these consolidated financial statements, the Group was still evaluating the potential impact of the other new standards and amendments to existing standards.
c. Principles of consolidation
i. Subsidiaries
i.1. Consolidation
Subsidiaries are all entities including special purpose entities, over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than half of the
voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The Group also assesses the
existence of control where it does not have more than 50 of the voting rights but is able to govern the financial and operating policies by virtue of de-facto control. De-facto control may arise in circumstances
where the size of the Group’s voting rights relative to the size and dispersal of the holdings of other shareholders give the Group the power to govern the financial and operating policies, etc.
Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date when that control ceases.
Intragroup balances, transactions, income and expenses are eliminated. Profits and losses resulting from intragroup transactions that are recognised in assets are also eliminated. The accounting policies of
subsidiaries have been amended where necessary to ensure consistency with the policies adopted by the Group.
160
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Principles of consolidation continued
