SMRA Interim Acc - Q2 2011 Eng
These consolidated financial statements are originally issued in the Indonesian language.
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2011 (UNAUDITED) AND
31 DECEMBER 2010 (AUDITED), AND
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2011 AND 2010 (UNAUDITED)
Table of Contents
Page
Consolidated Balance Sheets…………………………………………………………………………………
1-2
Consolidated Statements of Income………………………………………………………………………….
3
Consolidated Statements of Changes in Shareholders’ Equity……………………………………………
4
Consolidated Statements of Cash Flows …………………………………………………………………….
5-6
Notes to the Consolidated Financial Statements……………………………………………………………
7-58
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PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2011 (unaudited) and 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
31 December 2010
ASSETS
Cash and cash equivalents
2c,3,13,14
Investments in associated companies and others
2d,4
Trade receivables :
2e,5,14,15
Related parties
2f , 31
Third parties
Other receivables
Inventories
2e,6
2g,2l,7,15
1,222,763,676
1,120,483,310
4,529,276
4,029,276
1,590,909
2,648,182
42,815,372
86,724,037
115,480,968
121,955,210
1,520,238,628
1,308,433,357
Prepaid expenses
2h,8
25,429,670
5,796,136
Prepaid taxes
19a
190,033,385
135,113,485
9
374,208,542
468,937,425
3,111,581
5,646,573
Advances
Due from related parties
2f,31
Undeveloped land
2i,10,14,15
1,577,286,987
1,103,214,226
Fixed assets - net of
accumulated depreciation of Rp199,265,892
in 2011 and Rp177,616,464 in 2010.
2j,2l,2m,11,
14
575,709,553
379,106,473
Investment properties - net of
accumulated depreciation of Rp331,629,698
in 2011 and Rp308,748,636 in 2010.
2k,2m,12,14,
15
1,266,560,187
1,278,389,197
844,793
794,873
65,615,503
118,368,678
6,986,219,030
6,139,640,438
Deferred tax assets - net
Other assets
2s
2c,13,14,35,
TOTAL ASSETS
1
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2011 (unaudited) and 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
31 December 2010
LIABILITIES AND EQUITY
LIABILITIES
Loans from banks and financing institution
14
716,826,299
475,395,230
2v,7,15
298,057,940
297,652,024
16
278,514,988
181,664,820
Other payables
2b,17
150,889,416
26,811,579
Due to related parties
2f,31
229,799,581
203,202,788
Accrued expenses
18
134,084,187
157,753,675
Taxes payable
19b
17,508,534
43,451,998
Employee benefits liabilities
2p,20
43,178,673
41,310,161
Deposits received
2o,21
2,814,693
1,809,952
2,671,810,372
2,391,525,252
196,741,919
159,788,420
1,683,759
1,539,907
157,392
201,204
4,742,067,753
3,982,107,010
Bonds payable and sukuk ijarah - net
Trade payables to third parties
Related parties
31
Third parties
Unearned revenues
2o,22,2v
Deferred tax liabilities - net
Derivative liability
2s
2v,13,14,35
TOTAL LIABILITIES
EQUITY
Share Capital
1b,24,25
687,314,084
687,314,084
Additional paid-in capital - net
1b,24,25
245,355,554
245,355,554
56,506
56,506
45,892,133
43,557,354
1,247,623,725
1,163,603,329
2,226,242,002
2,139,886,827
17,909,275
17,646,601
TOTAL EQUITY
2,244,151,277
2,157,533,428
TOTAL LIABILITIES AND EQUITY
6,986,219,030
6,139,640,438
Differences arising from changes in the equity of
Subsidiary
Retained earnings
Appropriated - reserve fund
26
Unappropriated
Equity Attributable to Owners of the Company
2b,23
NON-CONTROLLING INTERESTS
2
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Six Months Ended 30 June 2011 and 2010 (unaudited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
30 June 2010
NET REVENUES
2f,2o,27
938,578,585
677,630,474
COST OF SALES AND DIRECT COSTS
2f,2o,28
(486,932,929)
(334,567,184)
451,645,656
343,063,290
GROSS PROFIT
General and administrative expenses
2o,29
(172,343,687)
(131,434,224)
Selling expenses
2o,29
(55,523,580)
(44,649,148)
Equity in net income of associated companies - net
2d,4
0
600,163
Other income
Other expenses
INCOME FROM OPERATIONS
12,343,189
11,953,596
(746,011)
(3,186,309)
235,375,567
176,347,368
Finance income
30
27,200,437
12,888,245
Finance costs
30
(42,723,253)
(48,948,416)
219,852,751
140,287,197
(64,359,649)
(38,390,982)
(143,853)
(52,013)
Income tax expense - net
(64,503,502)
(38,442,995)
NET INCOME FOR THE PERIOD
155,349,249
101,844,202
155,086,575
101,632,720
262,674
211,482
155,349,249
101,844,202
24
15
INCOME BEFORE INCOME TAX
2r
INCOME TAX BENEFIT (EXPENSE)
Current
Deferred
INCOME ATTRIBUTABLE TO :
Owners of the Company
2b,23
Non-controlling interests
BASIC EARNINGS PER SHARE (Rupiah per share)
2s,24,25
3
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Six Months Ended 30 June 2011 and 2010
(Expressed in thousands of rupiah, unless otherwise stated)
Retained earnings
Issued and fully
paid share capital
Additional paidin capital - net
Differences
arising from
changes in
the equity of
Subsidiary
Non
controlling
interests
Appropriated reserve fund
Unappropriated
Total equity
Total
Balance as of 31 December 2009
643,680,064
49,002,463
56,506
41,883,927
983,153,942
1,717,776,902
7,021,126
1,724,798,028
Transition adjustment of applying
Statement of Financial Accounting
Standards (PSAK) No. 55 (Revised
2006), “Financial Instruments:
Recognition and Measurement”
0
0
0
0
3,292,140
3,292,140
0
3,292,140
643,680,064
49,002,463
56,506
41,883,927
986,446,082
1,721,069,042
7,021,126
1,728,090,168
43,634,020
196,353,091
0
0
0
239,987,111
Appropriation to general reserve
0
0
0
1,673,427
(1,673,427)
0
0
0
Cash dividend
0
0
0
0
(54,647,222)
(54,647,222)
0
(54,647,222)
Net income for six months
0
0
0
0
101,632,720
101,632,720
211,482
101,844,202
Balance as of 30 June 2010
687,314,084
245,355,554
56,506
43,557,354
1,031,758,153
2,008,041,651
7,232,608
2,015,274,259
Balance as of 1 January 2011
687,314,084
245,355,554
56,506
43,557,354
1,163,603,329
2,139,886,827
17,646,601
2,157,533,428
Appropriation to general reserve
0
0
0
2,334,779
(2,334,779)
0
0
0
Cash dividend
0
0
0
0
(68,731,400)
(68,731,400)
Net income for six months
0
0
0
0
155.086.575
155.086.575
262.674
155.349.249
687,314,084
245,355,554
56,506
45,892,133
1,247,623,725
2,226,242,002
17,909,275
2,244,151,277
Balance as of 1 January 2010
Exercise of warrants
Balance as of 30 June 2011
4
239,987,111
(68,731,400)
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For Six Months Ended 30 June 2011 and 2010 (unaudited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
30 June 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
1,351,611,808
1,233,293,935
Suppliers
(935,199,574)
(564,098,869)
Employees
(109,858,277)
(88,255,591)
(106,953,262)
(102,618,259)
199,600,695
478,321,216
27,200,437
12,888,246
(133,074,446)
(70,414,131)
(40,486,909)
(50,197,847)
53,239,777
370,597,484
26,596,793
11,414,313
0
737,977
(2,881,899)
(14,189,347)
(144,159,931)
(106,506,805)
(2,236,141)
(205,968)
(500,000)
(384,181)
(123,181,178)
(109,134,011)
Payments to :
Payments for other operating expenses
Cash generated from operating activities
Receipts of interest income
Payments for :
Income taxes
Interest expense
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in amounts due to related parties
31
Proceeds from sale of fixed assets and
investment properties
Decrease (increase) in amounts due from related parties
Acquisitions of fixed assets and investment properties
31
11,12
Decrease (increase) in other assets
Investments in associated companies and others
4
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loans
14
253,156,395
65,729,265
Repayment of loans from banks and financing institution
14
(91,115,735)
(267,413,268)
7
(50,840,978)
11,651,500
9,244,546
0
239,987,111
(Increase) decrease in derivative assets
0
(48)
Increase (decrease) in derivative liabilites
0
211
Net cash used in financing activities
173,692,167
(3,293,161)
NET INCREASE IN CASH AND CASH EQUIVALENTS
103,750,766
258,170,312
Cash dividends paid by the Company
Proceeds from (increase in) restricted cash in time deposit
13
Increase in capital share and additional paid-in capital
24,25
The accompanying notes form an integral part of these consolidated financial statements.
5
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For Six Months Ended 30 June 2011 and 2010 (unaudited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (continued)
30 June 2011
30 June 2010
103,750,766
258,170,312
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR
3
1,120,483,310
633,169,242
EFFECT OF FOREIGN EXCHANGE
14
(1,470,400)
(1,719,348)
CASH AND CASH EQUIVALENTS AT
END OF YEAR
3
1,222,763,676
889,620,206
1,468,548
671,077
656,491
255,095
85,927,996
4,024,486
Activities not affecting cash flows:
Acquisitions of fixed assets credited to:
Advances
Other payables
Loans from banks and financing institution
The accompanying notes form an integral part of these consolidated financial statements.
6
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
1. GENERAL
a. The Company’s establishment
PT Summarecon Agung Tbk (the “Company”) was established within the framework of the
Domestic Capital Investment Law based on notarial deed No. 308 dated 26 November 1975 of
Ridwan Suselo, S.H. The articles of association was approved by the Ministry of Justice in its
Decision Letter No. YA 5/344/6 dated 12 July 1977 and was published in Supplement No. 597 of
State Gazette No. 79 dated 4 October 1977. The articles of association has been amended from
time to time, the latest amendments of which were drawn up in : (a) notarial deed No. 44 dated 18
July 2008 of Fathiah Helmi, S.H., which was published in Supplement No. 15805 of State Gazette
No. 48 dated 16 June 2009, concerning the increase in the Company’s issued and fully paid
capital share through the distribution of bonus shares from the capitalization of additional paid-in
capital (Notes 24 and 25) and compliance with the Corporation Law No. 40 of Year 2007, which
amendment was approved by the Ministry of Justice and Human Rights in its Decision Letter
No. AHU-50104.AH.01.02 dated 12 August 2008, and (b) notarial deed No. 13 dated 5 June 2009
of Fathiah Helmi S.H., concerning the change in the composition of the Company’s boards of
directors and commissioners, which amendment was acknowledged and recorded by the Ministry
of Justice and Human Rights based on its Decision Letter No. AHU-AH.01.10-10706 dated 17 July
2009.
According to Article 3 of the Company’s articles of association, its scope of activities comprises
real estate development, leasing of properties and operating recreational facilities and restaurants.
The Company's head office is located in Plaza Summarecon, Jl. Perintis Kemerdekaan
Kav. No. 42, Jakarta.
The Company started commercial operations in 1976.
b. The Company’s public offerings
The Chairman of the Capital Market and Financial Institutions Supervisory Agency (BAPEPAM and
LK), through his letter No. SI-085/SHM/MK.10/1990 dated 1 March 1990, declared effective at that
date, the offering of 6,667,000 Company shares with a par value of Rp1,000 (full amount) per
share to the public at an offering price of Rp6,800 (full amount) per share. The Company listed all
its issued shares on the Indonesia Share Exchange on 14 August 1996 (Note 25).
Based on the minutes of the shareholders’ extraordinary meeting which were notarized under deed
No. 191 dated 21 June 1996 of Sutjipto, S.H., the shareholders approved the reduction in the par
value of the Company’s shares from Rp1,000 (full amount) to Rp500 (full amount) per share.
The amendment was approved by the Ministry of Justice in its Decision Letter
No. C2.9225.HT.01.04.TH.96 dated 27 September 1996.
Based on the minutes of the shareholders’ extraordinary meeting which were notarized under deed
No. 99 dated 21 June 2002 of Sutjipto, S.H., the shareholders approved the reduction in the par
value of the Company’s shares from Rp500 (full amount) to Rp100 (full amount) per share. The
amendment was approved by the Ministry of Justice and Human Rights in its Decision Letter
No. C-12844 HT.01.04.TH.2002 dated 12 July 2002.
7
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
The composition of the Company’s Audit Committee as of 31 December 2010 and 2009 is as follows:
Chairman
Member
Member
: H. Edi Darnadi
: Poespita Pelangiwati
: Esther Melyani Homan
Salaries and other compensation benefits of the Boards of Commissioners and Directors amounted to
approximately Rp13 billion (full amount) and Rp26.1 billion (full amount) on 30 June 2011 and 31
December 2010, respectively. The Company and Subsidiaries had 1,345 and 1,339 permanent
employees (unaudited) as of 30 June 2011 and 31 December 2010, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies adopted by the Company and Subsidiaries conform to generally
accepted accounting principles in Indonesia. The significant accounting principles applied consistently
in the preparation of the consolidated financial statements for the periods ended 30 June 2011 and 31
December 2010 are as follows:
a. Basis of preparation of the consolidated financial statements
The consolidated financial statements have been prepared in accordance with generally accepted
accounting principles in Indonesia, which are based on Statements of Financial Accounting
Standards (PSAK) and Capital Market and Financial Institution Supervisory Agency (BAPEPAM
and LK) regulation No. VIII.G.7 (Revised 2000) concerning “Guidelines for Presentation of
Financial Statements” and circular letter No. SE-02/PM/2002 dated 27 December 2002 of the
Chairman of BAPEPAM and LK concerning “Guidelines for Financial Statement Presentation and
Disclosures for Publicly-listed Companies Engaged in the Real Estate Industry”.
The consolidated financial statements have been prepared on the accrual basis using the historical
cost concept of accounting, except for certain short-term investments and derivative instruments
which are stated at fair value, inventories which are stated at the lower of cost or net realizable
value, certain investments in shares of share which are accounted for using the equity method and
financial instruments which are valued at fair value.
The consolidated statements of cash flows classify cash flows into operating, investing and
financing activities. The cash flows from operating activities are presented using the direct method.
The reporting currency used in the preparation of the consolidated financial statements is the
Indonesian rupiah (Rp).
b. Principles of consolidation
The consolidated financial statements include the accounts of the Company and Subsidiaries
whose shares are owned more than 50% by the Company, directly or indirectly; the joint operation
(Kerja Sama Operasi), known as KSO Summarecon Serpong, between SCK and PT Jakaratabaru
Cosmopolitan (JBC); and the KSO Summarecon Lakeview among SCK, PT Telaga Gading
Serpong (TGS) and PT Lestari Kreasi (LTK).
In accordance with PSAK No. 12, “Financial Reporting of Interests in Jointly Controlled Operations
and Assets”, SCK’s participation in the joint operation has been accounted for in the consolidated
financial statements using the proportionate consolidation method. In applying the proportionate
consolidation method, the venturer combines its proportionate share in the assets and liabilities of
the joint venture, and its interests in the joint venture revenues and expenses with the related
accounts in the consolidated financial statements.
All significant intercompany accounts and transactions have been eliminated.
11
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
The proportionate share of the minority shareholders in the equity of the Subsidiaries is reflected
as “Minority Interests in Net Assets of Consolidated Subsidiaries” in the consolidated balance
sheets. When cumulative losses applicable to minority interests exceed the minority shareholders’
interests in the Subsidiaries’ capital share, the loss in excess of the minority shareholders’ interest
is charged against the majority shareholder’s interest and is not reflected as an asset, except when
minority shareholders have a binding obligation to cover such losses and the minority shareholders
can fulfill their obligation. Subsequent profits earned by the Subsidiaries that are applicable to the
minority interests shall be first allocated to the majority interest to the extent of the losses
applicable to the minority interests which were previously absorbed by such majority interest.
The excess of the acquisition cost of the investment over the Company’s interest in the net assets
of Subsidiaries is recorded as ‘‘Excess of Cost Over Interest in Net Assets of Subsidiaries” and is
amortized using the straight-line method over five years. When the cost of the acquisition is less
than the Company’s interest in the net assets of the Subsidiaries, the excess is recognized as
“Excess of Interest in Net Assets of Subsidiary Over Cost” (included as part of Other Payables in
the consolidated balance sheets) and is amortized using the straight-line method over 20 years.
In accordance with PSAK No. 40, “Accounting for Changes in Equity of Subsidiary/Associated
Company”, the differences between the carrying values of the Company’s investments in shares of
share and its corresponding proportionate equity share in the underlying net asset values of its
Subsidiaries and/or associated companies arising from changes in the latter’s equity, which are not
resulting from transactions between the Company and the subject Subsidiaries/associated
companies, are presented as a separate item under the Shareholders’ Equity section of the
consolidated sheets as “Differences Arising from Changes in Equity of Subsidiary”.
c. Cash equivalents
Time deposits with maturities of three months or less at the time of placement, which are not
restricted as to withdrawal or are not pledged as collateral for loans, are classified as “Cash
Equivalents”. Cash in banks and time deposits which are restricted or pledged are presented as
part of “Other Assets”.
d. Investments
Prior to 2010, investment in shares of share wherein the Company’s ownership interest is at least
20% but not exceeding 50% is accounted for under the equity method, whereby the cost of the
investment is increased or decreased by the Company’s share in the net earnings or losses of the
associated company and reduced by the dividends received.
In accordance with PSAK No. 15 on “Accounting for Investments in Associated Companies”, under
the equity method, if an investor’s share in the losses of an investee equals or exceeds the
carrying amount of the investment, the investment shall be reported at zero value. Subsequent
losses will be absorbed with a credit to liability only if the investor has guaranteed to pay the
investee’s liabilities. If the investee subsequently reports a profit, the investor will recognize income
only after its share in the profit exceeds its share in the net losses not recognized or absorbed.
Starting 2010, investment on share of share wherein the Company’s ownership interest is less
than 20% is classified as financial asset available for sale and is determined based on the policies
outlined in Note 2v.
e. Allowance for impairment
Prior to 2010, allowance for impairment was provided based on a review of the status of the
individual receivables at the end of the year. Starting 2010, the allowance, if any, is determined
based on the policies outlined in Note 2v.
12
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
f.
Transactions with related parties
The Company and Subsidiaries have transactions with certain parties which are regarded as
having related party relationships as described by PSAK No. 7 on “Related Party Disclosures”.
Significant transactions with related parties are disclosed in Note 31.
g. Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is determined by the
specific identification method.
The cost of land under development consists of cost of undeveloped land, direct and indirect
development costs related to real estate development activities and borrowing costs. Land under
development is transferred to lots available for sale when the land development is completed. Total
project cost is allocated proportionately to the saleable lots based on their respective areas.
The cost of land development, including land which is used for roads and infrastructure or other
unsaleable area, is allocated to the saleable area.
The cost of buildings and apartements under construction is transferred to houses, shops and
apartments (strata title) available for sale when the construction is substantially completed.
For residential property project, its cost is classified as part of inventories upon the commencement
of development and construction of infrastructure. For commercial property project, upon the
completion of development and construction of infrastructure, its cost remains as part of
inventories or is reclassified to the related fixed asset account, whichever is more appropriate.
Other inventories, consisting of food, beverages and other inventories, are stated at cost or net
realizable value, whichever is lower. Cost is determined using the first-in, first-out method (FIFO).
h. Prepaid expenses
Prepaid expenses are amortized over their beneficial periods.
i.
Undeveloped land
Undeveloped land is stated at cost or net realizable value, whichever is lower.
The cost of undeveloped land, consisting of pre-acquisition and acquisition cost of land, is
transferred to land under development upon commencement of land development.
j.
Fixed assets
Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any, except
for land which is not depreciated. Such cost includes the cost of replacing part of the fixed assets
when that cost is incurred, if the recognition criteria are met.
Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of
the fixed assets as a replacement if the recognition criteria are met. All other repairs and
maintenance costs that do not meet the recognition criteria are recognized in the consolidated
statements of income as incurred.
Depreciation is computed using the straight-line method over the estimated useful lives of the
assets as follows:
Years
Buildings and infrastructures
Hotel facilities
Machinery and heavy equipment
2 - 40
2-5
10
13
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Years
Vehicles
Furniture and office equipment
5 - 10
2-5
Construction in progress is stated at cost and is accounted as part of fixed assets.
The accumulated costs will be reclassified to the appropriate fixed assets or investment properties
account when the construction is completed and the constructed asset is ready for its intended
use.
In accordance with PSAK No. 47 on “Accounting for Land”, land is stated at cost and is not
depreciated. Certain costs incurred relating to the cost or renewal of the legal title of a landright are
deferred (included as part of Other Assets) and amortized over the estimated useful life of the
landright or the term of the landright, whichever period is shorter.
An item of fixed assets is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the
asset) is credited or charged to operations in the year the asset is derecognized.
The fixed assets’ residual values, useful lives and methods of depreciation are reviewed and
adjusted prospectively, if appropriate, at each financial year end.
k. Investment properties
Investment properties are stated at cost including the transaction cost less accumulated
depreciation and impairment loss, if any, except for land which is not depreciated. Such cost
includes the cost of replacing part of the investment properties, if the recognition criteria are met,
and excludes the daily expenses on their usage.
Investment properties consist of land, building and infrastructures, and machinery and heavy
equipment held by the Company and Subsidiaries to earn rentals or for capital appreciation or
both, rather than for use in the production or supply of goods or services or for administrative
purposes or sale in the ordinary course of business.
Depreciation is computed using the straight-line method over the estimated useful lives of the
investment properties as follows:
Years
Buildings and infrastructures
Machinery and heavy equipment
3 - 40
10
An investment property should be derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
Gain or loss arising from the retirement or disposal of investment property is credited or charged to
operations in the year the asset is derecognized.
Transfers to investment property should be made when, and only when, there is a change in use,
evidenced by the end of owner-occupation, commencement of an operating lease to another party
or end of construction or development. Transfers from investment property should be made when,
and only when, there is a change in use, evidenced by the commencement of owner-occupation or
commencement of development with a view to sell.
For a transfer from investment properties to owner-occupied property, the Company uses the cost
method at the date of change in use. If an owner-occupied property becomes an investment
property, the Company records the investment property in accordance with the fixed assets
policies up to the date of change in use.
14
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
l.
Capitalization of borrowing costs
In accordance with PSAK No. 26 (Revised 1997) on “Borrowing Costs”, borrowing costs are
generally expensed as incurred. Borrowing costs are capitalized if they are directly attributable to
the acquisition, construction or production of a qualifying asset. Capitalization of borrowing costs
commences when the activities to prepare the asset for its intended use or sale are in progress
and the expenditures and borrowing costs are being incurred. Borrowing costs are capitalized until
the assets are ready for their intended use. If the resulting carrying amount of the asset exceeds
its recoverable amount or net realizable value, an impairment loss is recognized.
m. Impairment of non-financial asset value
The recoverable amount of an asset is estimated whenever events or changes in circumstances
indicate that its carrying amount may not be fully recoverable. Impairment in asset value, if any, is
recognized as loss in the current year’s consolidated statement of income.
n. Share issuance costs
Costs incurred in connection with the issuance of capital share are presented as a deduction from
additional paid-in-capital.
o.
Revenue and expense recognition
Revenues from real estate sales are recognized in accordance with PSAK No. 44 on “Accounting
for Real Estate Activities” as follows:
(i) 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 subordinated to other loan 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.
(ii) 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 in the
future.
4. The land development process is complete so that the seller has no further obligations
related to the lots sold.
5. Only the lots are sold, without any requirement of the seller’s involvement in the
construction of the building on the lots.
(iii) 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
15
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
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.
Revenue from other hotel services is recognized when the services are rendered or the goods are
delivered.
Expenses are recognized when incurred.
p. 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. 13/2003 dated March 25, 2003 (“the Law”) and PSAK No. 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 contribution 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 No. 24 (Revised 2004), the cost of providing employee benefits under the Law is
determined using the projected-unit-credit actuarial valuation 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.
q. 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 balance sheet date, monetary assets and liabilities
denominated in foreign currencies are adjusted to reflect the prevailing rates as of balance sheet
date and the resulting gains or losses are credited or charged to current operations.
16
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
As of June 30, 2011 and 2010 and December 31, 2010, the rates of exchange used were as
follows (full amount) :
30 June 2011
1 European euro (Euro)
31 December 2010
30 June 2010
12,462
11,956
11,087
1 United States dollar (US$)
8,597
8,991
9,083
1 Singapore dollar (Sin$)
6,985
6,981
6,481
Transactions in other foreign currencies are considered not significant.
r.
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. 71/2008 (PP No.
71/2008) on “the third changes on PP No. 48/1994 regarding payment of income tax on income
from transfer rights on land and/or building”. This regulation provides that, effective 1 January
2009, the income of a taxpayer from transactions of transferring rights on land and/or building, will
be subjected to final tax of 5%.
Final income tax
The differences between the carrying amounts of existing assets or liabilities related to the final
income tax and their respective tax bases are not recognized as deferred tax assets or liabilities.
Current tax expense related to income subject to final income tax is recognized in proportion to
total income recognized during the current year for accounting purposes. The difference between
the final income tax paid and the amount charged as final income tax expense in the statements of
income is recognized as prepaid tax or tax payable.
Non-final income tax
Current tax expense is provided based on the estimated taxable income for the year which is
subject to non-final income tax rates. Deferred tax assets and liabilities are recognized for the
temporary differences between the financial and the tax bases of assets and liabilities at each
reporting date. Future tax benefits, such as the carry-forward of unused tax losses, are also
recognized to the extent that realization of such benefits is probable.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance sheet date. Changes in the carrying
amount of deferred tax assets and liabilities due to a change in tax rates are charged or credited to
current year operations, except to the extent that they relate to items previously charged or
credited to shareholders’ equity.
Amendment to a tax obligation is recorded when an assessment is received or, if appealed against
by the Company or Subsidiaries, when the result of the appeal is determined.
s. Earnings per share
In accordance with PSAK No. 56 on “Earnings per Share”, basic earnings per share amount is
calculated by dividing net income for the year by the weighted average number of outstanding
shares during the year.
Diluted earnings per share amount is computed by dividing net income by the weighted average
number of shares outstanding as adjusted for the effects of all potentially dilutive ordinary shares
(i.e. warrants).
17
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
t.
Segment reporting
The Company and Subsidiaries follow PSAK No. 5 (Revised 2000) which requires the presentation
of financial information based on business segment and geographical segment. In accordance with
the Company’s and Subsidiaries’ organizational and management structure and internal reporting
system, the primary segment reporting of financial information is presented based on business
segment as the risks and returns are dominantly affected by their different business activities.
The secondary segment reporting based on geographical location is not presented since all of the
Company’s and Subsidiaries’ business activities are located in Jabotabek.
Financial information segment reporting as required by PSAK No. 5 (Revised 2000) is presented in
Note 36.
u. Use of estimates
The preparation of consolidated financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
amounts reported therein. Due to inherent uncertainty in making estimates, actual results reported
in future periods might be based on amounts which differ from those estimates.
v. Financial instruments
Starting 1 January 2010, the Company and Subsidiaries have applied PSAK No. 50 (Revised
2006), “Financial Instruments: Presentation and Disclosures”, and PSAK No. 55 (Revised 2006),
“Financial Instrument: Recognition and Measurement”, which superseded PSAK No. 50,
“Accounting for Certain Investment in Securities”, and PSAK No. 55 (Revised 1999), “Accounting
for Derivative Instruments and Hedging Activities”. PSAK No. 50 (Revised 2006) and PSAK No. 55
(Revised 2006) were applied prospectively.
PSAK No. 50 (Revised 2006) contains the requirements for the presentation of financial
instruments and identifies the information that should be disclosed. The presentation requirements
apply to the classification of financial instruments, from the perspective of the issuer, into financial
assets, financial liabilities and equity instruments; the classification of related interest, dividends,
losses and gains, and the circumstances in which financial assets and financial liabilities must be
offset. This PSAK requires the disclosure of, among others, information about factors that affect
the amount, timing and certainty of an entity’s future cash flows relating to financial instruments
and the accounting policies applied to those instruments.
PSAK No. 55 established the principles for recognizing and measuring financial assets, financial
liabilities, and some contracts to buy or sell non-financial items. This PSAK provides the definitions
and characteristics of a derivative, the categories of financial instruments, recognition and
measurement, hedge accounting and determination of hedging relationships, among others.
The transition effect from the prospective adoption of the above revised PSAK’s which amounted
to Rp3,292,140 has been recorded in the retained earnings at 1 January 2010.
i.
Financial Assets
Initial Recognition
Financial assets within the scope of PSAK No. 55 (Revised 2006) are classified as financial
assets at fair value through profit or loss, loans and receivables, held-to-maturity investments
and available-for-sale financial assets. The Company and Subsidiaries determine the
classification of their financial assets at initial recognition and, where allowed and appropriate,
re-evaluate this designation at each financial year end.
18
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Financial assets are recognized initially at fair value plus, in the case of investments not at fair
value through profit or loss, directly attributable transaction costs.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way purchases) are
recognized on the trade date, i.e., the date that the Company and Subsidiaries commit to
purchase or sell the assets.
The Company and Subsidiaries have determined financial assets are categorized as loans
and receivables and available-for-sale financial assets.
Subsequent Measurement
●
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Such financial assets are carried at
amortized cost using the effective interest rate method. Gains and losses are recognized
in the consolidated statements of income when the loans and receivables are
derecognized or impaired, as well as through the amortization process.
As of 31 December 2010, the Company’s and Subsidiaries’ have cash and cash
equivalents, trade and other receivables, due from related parties and other assetsrestricted time deposits and cash in bank in this category.
●
Available-For-Sale (AFS) financial assets
AFS financial assets are non-derivative financial assets that are designated as availablefor-sale or are not classified as fair value through profit and loss, loans and receivables
and held to maturity. After initial measurement, AFS financial assets are measured at fair
value with unrealized gains or losses recognized in the shareholder’s equity until the
investment is derecognized. At that time, the cumulative gain or loss previously recognized
in the shareholder’s equity shall be reclassified to profit or loss as a reclassification
adjustment.
The Company and Subsidiaries have other investments in shares of share that do not
have readily determinable fair value in which the ownership of equity interest is less than
20%. These investments are carried at cost.
ii.
Financial Liabilities
Initial Recognition
Financial liabilities within the scope of PSAK No. 55 (Revised 2006) are classified as financial
liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated
as hedging instruments in an effective hedge, as appropriate. The Company and Subsidiaries
determine the classification of their financial liabilities at initial recognition.
Financial liabilities are recognized initially at fair value which, in the case of loans and
borrowings, is inclusive of directly attributable transaction costs.
As of 31 December 2010, the Company’s and Subsidiaries’ financial liabilities include loans
from banks and financing institution, bonds payable and sukuk ijarah - net, trade payables to
third parties, other payables, due to related parties, accrued expenses, and deposits received customer deposit and derivative liability.
The Company and Subsidiaries have determined that financial liabilities are categorized as
19
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
loans and borrowings and measured at fair value through profit or loss.
Subsequent Measurement
●
Loans and borrowings
After initial recognition, loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method.
Gains and losses are recognized in the consolidated statements of income when the
liabilities are derecognized as well as through the amortization process.
●
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition at fair value through profit
or loss.
Financial liabilities are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Derivative liabilities are also classified as held for
trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the consolidated statements
of income.
iii. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the
consolidated balance sheets if, and only if, there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a net basis, or to realize the
assets and settle the liabilities simultaneously.
iv. Fair value of financial instruments
The fair value of financial instruments that are actively traded in organized financial markets is
determined by reference to quoted market bid prices at the close of business at the end of the
reporting year. For financial instruments where there is no active market, fair value is
determined using valuation techniques. Such techniques may include using recent arm’s
length market transaction, reference to the current fair value of another instrument that is
substantially the same, discounted cash flow analysis, or other valuation models.
Credit Risk Adjustment
The Company and Subsidiaries adjust the price in the more observable market to reflect any
differences in counterparty credit risk between instruments traded in that market and the ones
being valued for financial asset positions. In determining the fair value of financial liability
positions, the Company’s and Subsidiaries’ own credit risk associated with the instrument is
taken into account.
v.
Amortized cost of financial instruments
Amortized cost is computed using the effective interest rate method less any allowance for
impairment and principal repayment or reduction. The calculation takes into account any
premium or discount on acquisition and includes transaction costs and fees that are an integral
part of the effective interest rate.
20
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
vi. Impairment of financial assets
The Company and Subsidiaries assess at each balance sheet date whether there is any
objective evidence that a financial asset or a group of financial assets is impaired.
●
Loans and receivables
For loans and receivables carried at amortized cost, the Company and Subsidiaries first
assess whether objective evidence of impairment exists individually for financial assets
that are individually significant, or collectively for financial assets that are not individually
significant. If the Company and Subsidiaries determine that no objective evidence of
impairment exists for an individually assessed financial asset, whether significant or not,
the asset is included in a group of financial assets with similar credit risk characteristics,
and the group is collectively assessed for impairment. Assets that are individually
assessed for impairment and for which an impairment loss is, or continues to be,
recognized are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has occurred, the amount of the loss
is measured as the difference between the asset’s carrying amount and the present value
of estimated future cash flows (excluding future expected credit losses that have not yet
been incurred). The present value of the estimated future cash flows is discounted at the
financial asset’s original effective interest rate. If a ”loans and receivables” financial asset
has a variable interest rate, the discount rate for measuring impairment loss is the current
effective interest rate.
The carrying amount of the financial asset is reduced through the use of an allowance for
impairment account and the amount of the loss is recognized in the consolidated
statements of in
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2011 (UNAUDITED) AND
31 DECEMBER 2010 (AUDITED), AND
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2011 AND 2010 (UNAUDITED)
Table of Contents
Page
Consolidated Balance Sheets…………………………………………………………………………………
1-2
Consolidated Statements of Income………………………………………………………………………….
3
Consolidated Statements of Changes in Shareholders’ Equity……………………………………………
4
Consolidated Statements of Cash Flows …………………………………………………………………….
5-6
Notes to the Consolidated Financial Statements……………………………………………………………
7-58
**************************
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2011 (unaudited) and 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
31 December 2010
ASSETS
Cash and cash equivalents
2c,3,13,14
Investments in associated companies and others
2d,4
Trade receivables :
2e,5,14,15
Related parties
2f , 31
Third parties
Other receivables
Inventories
2e,6
2g,2l,7,15
1,222,763,676
1,120,483,310
4,529,276
4,029,276
1,590,909
2,648,182
42,815,372
86,724,037
115,480,968
121,955,210
1,520,238,628
1,308,433,357
Prepaid expenses
2h,8
25,429,670
5,796,136
Prepaid taxes
19a
190,033,385
135,113,485
9
374,208,542
468,937,425
3,111,581
5,646,573
Advances
Due from related parties
2f,31
Undeveloped land
2i,10,14,15
1,577,286,987
1,103,214,226
Fixed assets - net of
accumulated depreciation of Rp199,265,892
in 2011 and Rp177,616,464 in 2010.
2j,2l,2m,11,
14
575,709,553
379,106,473
Investment properties - net of
accumulated depreciation of Rp331,629,698
in 2011 and Rp308,748,636 in 2010.
2k,2m,12,14,
15
1,266,560,187
1,278,389,197
844,793
794,873
65,615,503
118,368,678
6,986,219,030
6,139,640,438
Deferred tax assets - net
Other assets
2s
2c,13,14,35,
TOTAL ASSETS
1
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2011 (unaudited) and 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
31 December 2010
LIABILITIES AND EQUITY
LIABILITIES
Loans from banks and financing institution
14
716,826,299
475,395,230
2v,7,15
298,057,940
297,652,024
16
278,514,988
181,664,820
Other payables
2b,17
150,889,416
26,811,579
Due to related parties
2f,31
229,799,581
203,202,788
Accrued expenses
18
134,084,187
157,753,675
Taxes payable
19b
17,508,534
43,451,998
Employee benefits liabilities
2p,20
43,178,673
41,310,161
Deposits received
2o,21
2,814,693
1,809,952
2,671,810,372
2,391,525,252
196,741,919
159,788,420
1,683,759
1,539,907
157,392
201,204
4,742,067,753
3,982,107,010
Bonds payable and sukuk ijarah - net
Trade payables to third parties
Related parties
31
Third parties
Unearned revenues
2o,22,2v
Deferred tax liabilities - net
Derivative liability
2s
2v,13,14,35
TOTAL LIABILITIES
EQUITY
Share Capital
1b,24,25
687,314,084
687,314,084
Additional paid-in capital - net
1b,24,25
245,355,554
245,355,554
56,506
56,506
45,892,133
43,557,354
1,247,623,725
1,163,603,329
2,226,242,002
2,139,886,827
17,909,275
17,646,601
TOTAL EQUITY
2,244,151,277
2,157,533,428
TOTAL LIABILITIES AND EQUITY
6,986,219,030
6,139,640,438
Differences arising from changes in the equity of
Subsidiary
Retained earnings
Appropriated - reserve fund
26
Unappropriated
Equity Attributable to Owners of the Company
2b,23
NON-CONTROLLING INTERESTS
2
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Six Months Ended 30 June 2011 and 2010 (unaudited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
30 June 2010
NET REVENUES
2f,2o,27
938,578,585
677,630,474
COST OF SALES AND DIRECT COSTS
2f,2o,28
(486,932,929)
(334,567,184)
451,645,656
343,063,290
GROSS PROFIT
General and administrative expenses
2o,29
(172,343,687)
(131,434,224)
Selling expenses
2o,29
(55,523,580)
(44,649,148)
Equity in net income of associated companies - net
2d,4
0
600,163
Other income
Other expenses
INCOME FROM OPERATIONS
12,343,189
11,953,596
(746,011)
(3,186,309)
235,375,567
176,347,368
Finance income
30
27,200,437
12,888,245
Finance costs
30
(42,723,253)
(48,948,416)
219,852,751
140,287,197
(64,359,649)
(38,390,982)
(143,853)
(52,013)
Income tax expense - net
(64,503,502)
(38,442,995)
NET INCOME FOR THE PERIOD
155,349,249
101,844,202
155,086,575
101,632,720
262,674
211,482
155,349,249
101,844,202
24
15
INCOME BEFORE INCOME TAX
2r
INCOME TAX BENEFIT (EXPENSE)
Current
Deferred
INCOME ATTRIBUTABLE TO :
Owners of the Company
2b,23
Non-controlling interests
BASIC EARNINGS PER SHARE (Rupiah per share)
2s,24,25
3
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Six Months Ended 30 June 2011 and 2010
(Expressed in thousands of rupiah, unless otherwise stated)
Retained earnings
Issued and fully
paid share capital
Additional paidin capital - net
Differences
arising from
changes in
the equity of
Subsidiary
Non
controlling
interests
Appropriated reserve fund
Unappropriated
Total equity
Total
Balance as of 31 December 2009
643,680,064
49,002,463
56,506
41,883,927
983,153,942
1,717,776,902
7,021,126
1,724,798,028
Transition adjustment of applying
Statement of Financial Accounting
Standards (PSAK) No. 55 (Revised
2006), “Financial Instruments:
Recognition and Measurement”
0
0
0
0
3,292,140
3,292,140
0
3,292,140
643,680,064
49,002,463
56,506
41,883,927
986,446,082
1,721,069,042
7,021,126
1,728,090,168
43,634,020
196,353,091
0
0
0
239,987,111
Appropriation to general reserve
0
0
0
1,673,427
(1,673,427)
0
0
0
Cash dividend
0
0
0
0
(54,647,222)
(54,647,222)
0
(54,647,222)
Net income for six months
0
0
0
0
101,632,720
101,632,720
211,482
101,844,202
Balance as of 30 June 2010
687,314,084
245,355,554
56,506
43,557,354
1,031,758,153
2,008,041,651
7,232,608
2,015,274,259
Balance as of 1 January 2011
687,314,084
245,355,554
56,506
43,557,354
1,163,603,329
2,139,886,827
17,646,601
2,157,533,428
Appropriation to general reserve
0
0
0
2,334,779
(2,334,779)
0
0
0
Cash dividend
0
0
0
0
(68,731,400)
(68,731,400)
Net income for six months
0
0
0
0
155.086.575
155.086.575
262.674
155.349.249
687,314,084
245,355,554
56,506
45,892,133
1,247,623,725
2,226,242,002
17,909,275
2,244,151,277
Balance as of 1 January 2010
Exercise of warrants
Balance as of 30 June 2011
4
239,987,111
(68,731,400)
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For Six Months Ended 30 June 2011 and 2010 (unaudited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
30 June 2011
30 June 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
1,351,611,808
1,233,293,935
Suppliers
(935,199,574)
(564,098,869)
Employees
(109,858,277)
(88,255,591)
(106,953,262)
(102,618,259)
199,600,695
478,321,216
27,200,437
12,888,246
(133,074,446)
(70,414,131)
(40,486,909)
(50,197,847)
53,239,777
370,597,484
26,596,793
11,414,313
0
737,977
(2,881,899)
(14,189,347)
(144,159,931)
(106,506,805)
(2,236,141)
(205,968)
(500,000)
(384,181)
(123,181,178)
(109,134,011)
Payments to :
Payments for other operating expenses
Cash generated from operating activities
Receipts of interest income
Payments for :
Income taxes
Interest expense
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in amounts due to related parties
31
Proceeds from sale of fixed assets and
investment properties
Decrease (increase) in amounts due from related parties
Acquisitions of fixed assets and investment properties
31
11,12
Decrease (increase) in other assets
Investments in associated companies and others
4
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loans
14
253,156,395
65,729,265
Repayment of loans from banks and financing institution
14
(91,115,735)
(267,413,268)
7
(50,840,978)
11,651,500
9,244,546
0
239,987,111
(Increase) decrease in derivative assets
0
(48)
Increase (decrease) in derivative liabilites
0
211
Net cash used in financing activities
173,692,167
(3,293,161)
NET INCREASE IN CASH AND CASH EQUIVALENTS
103,750,766
258,170,312
Cash dividends paid by the Company
Proceeds from (increase in) restricted cash in time deposit
13
Increase in capital share and additional paid-in capital
24,25
The accompanying notes form an integral part of these consolidated financial statements.
5
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For Six Months Ended 30 June 2011 and 2010 (unaudited)
(Expressed in thousands of rupiah, unless otherwise stated)
Notes
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (continued)
30 June 2011
30 June 2010
103,750,766
258,170,312
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR
3
1,120,483,310
633,169,242
EFFECT OF FOREIGN EXCHANGE
14
(1,470,400)
(1,719,348)
CASH AND CASH EQUIVALENTS AT
END OF YEAR
3
1,222,763,676
889,620,206
1,468,548
671,077
656,491
255,095
85,927,996
4,024,486
Activities not affecting cash flows:
Acquisitions of fixed assets credited to:
Advances
Other payables
Loans from banks and financing institution
The accompanying notes form an integral part of these consolidated financial statements.
6
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
1. GENERAL
a. The Company’s establishment
PT Summarecon Agung Tbk (the “Company”) was established within the framework of the
Domestic Capital Investment Law based on notarial deed No. 308 dated 26 November 1975 of
Ridwan Suselo, S.H. The articles of association was approved by the Ministry of Justice in its
Decision Letter No. YA 5/344/6 dated 12 July 1977 and was published in Supplement No. 597 of
State Gazette No. 79 dated 4 October 1977. The articles of association has been amended from
time to time, the latest amendments of which were drawn up in : (a) notarial deed No. 44 dated 18
July 2008 of Fathiah Helmi, S.H., which was published in Supplement No. 15805 of State Gazette
No. 48 dated 16 June 2009, concerning the increase in the Company’s issued and fully paid
capital share through the distribution of bonus shares from the capitalization of additional paid-in
capital (Notes 24 and 25) and compliance with the Corporation Law No. 40 of Year 2007, which
amendment was approved by the Ministry of Justice and Human Rights in its Decision Letter
No. AHU-50104.AH.01.02 dated 12 August 2008, and (b) notarial deed No. 13 dated 5 June 2009
of Fathiah Helmi S.H., concerning the change in the composition of the Company’s boards of
directors and commissioners, which amendment was acknowledged and recorded by the Ministry
of Justice and Human Rights based on its Decision Letter No. AHU-AH.01.10-10706 dated 17 July
2009.
According to Article 3 of the Company’s articles of association, its scope of activities comprises
real estate development, leasing of properties and operating recreational facilities and restaurants.
The Company's head office is located in Plaza Summarecon, Jl. Perintis Kemerdekaan
Kav. No. 42, Jakarta.
The Company started commercial operations in 1976.
b. The Company’s public offerings
The Chairman of the Capital Market and Financial Institutions Supervisory Agency (BAPEPAM and
LK), through his letter No. SI-085/SHM/MK.10/1990 dated 1 March 1990, declared effective at that
date, the offering of 6,667,000 Company shares with a par value of Rp1,000 (full amount) per
share to the public at an offering price of Rp6,800 (full amount) per share. The Company listed all
its issued shares on the Indonesia Share Exchange on 14 August 1996 (Note 25).
Based on the minutes of the shareholders’ extraordinary meeting which were notarized under deed
No. 191 dated 21 June 1996 of Sutjipto, S.H., the shareholders approved the reduction in the par
value of the Company’s shares from Rp1,000 (full amount) to Rp500 (full amount) per share.
The amendment was approved by the Ministry of Justice in its Decision Letter
No. C2.9225.HT.01.04.TH.96 dated 27 September 1996.
Based on the minutes of the shareholders’ extraordinary meeting which were notarized under deed
No. 99 dated 21 June 2002 of Sutjipto, S.H., the shareholders approved the reduction in the par
value of the Company’s shares from Rp500 (full amount) to Rp100 (full amount) per share. The
amendment was approved by the Ministry of Justice and Human Rights in its Decision Letter
No. C-12844 HT.01.04.TH.2002 dated 12 July 2002.
7
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
The composition of the Company’s Audit Committee as of 31 December 2010 and 2009 is as follows:
Chairman
Member
Member
: H. Edi Darnadi
: Poespita Pelangiwati
: Esther Melyani Homan
Salaries and other compensation benefits of the Boards of Commissioners and Directors amounted to
approximately Rp13 billion (full amount) and Rp26.1 billion (full amount) on 30 June 2011 and 31
December 2010, respectively. The Company and Subsidiaries had 1,345 and 1,339 permanent
employees (unaudited) as of 30 June 2011 and 31 December 2010, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies adopted by the Company and Subsidiaries conform to generally
accepted accounting principles in Indonesia. The significant accounting principles applied consistently
in the preparation of the consolidated financial statements for the periods ended 30 June 2011 and 31
December 2010 are as follows:
a. Basis of preparation of the consolidated financial statements
The consolidated financial statements have been prepared in accordance with generally accepted
accounting principles in Indonesia, which are based on Statements of Financial Accounting
Standards (PSAK) and Capital Market and Financial Institution Supervisory Agency (BAPEPAM
and LK) regulation No. VIII.G.7 (Revised 2000) concerning “Guidelines for Presentation of
Financial Statements” and circular letter No. SE-02/PM/2002 dated 27 December 2002 of the
Chairman of BAPEPAM and LK concerning “Guidelines for Financial Statement Presentation and
Disclosures for Publicly-listed Companies Engaged in the Real Estate Industry”.
The consolidated financial statements have been prepared on the accrual basis using the historical
cost concept of accounting, except for certain short-term investments and derivative instruments
which are stated at fair value, inventories which are stated at the lower of cost or net realizable
value, certain investments in shares of share which are accounted for using the equity method and
financial instruments which are valued at fair value.
The consolidated statements of cash flows classify cash flows into operating, investing and
financing activities. The cash flows from operating activities are presented using the direct method.
The reporting currency used in the preparation of the consolidated financial statements is the
Indonesian rupiah (Rp).
b. Principles of consolidation
The consolidated financial statements include the accounts of the Company and Subsidiaries
whose shares are owned more than 50% by the Company, directly or indirectly; the joint operation
(Kerja Sama Operasi), known as KSO Summarecon Serpong, between SCK and PT Jakaratabaru
Cosmopolitan (JBC); and the KSO Summarecon Lakeview among SCK, PT Telaga Gading
Serpong (TGS) and PT Lestari Kreasi (LTK).
In accordance with PSAK No. 12, “Financial Reporting of Interests in Jointly Controlled Operations
and Assets”, SCK’s participation in the joint operation has been accounted for in the consolidated
financial statements using the proportionate consolidation method. In applying the proportionate
consolidation method, the venturer combines its proportionate share in the assets and liabilities of
the joint venture, and its interests in the joint venture revenues and expenses with the related
accounts in the consolidated financial statements.
All significant intercompany accounts and transactions have been eliminated.
11
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
The proportionate share of the minority shareholders in the equity of the Subsidiaries is reflected
as “Minority Interests in Net Assets of Consolidated Subsidiaries” in the consolidated balance
sheets. When cumulative losses applicable to minority interests exceed the minority shareholders’
interests in the Subsidiaries’ capital share, the loss in excess of the minority shareholders’ interest
is charged against the majority shareholder’s interest and is not reflected as an asset, except when
minority shareholders have a binding obligation to cover such losses and the minority shareholders
can fulfill their obligation. Subsequent profits earned by the Subsidiaries that are applicable to the
minority interests shall be first allocated to the majority interest to the extent of the losses
applicable to the minority interests which were previously absorbed by such majority interest.
The excess of the acquisition cost of the investment over the Company’s interest in the net assets
of Subsidiaries is recorded as ‘‘Excess of Cost Over Interest in Net Assets of Subsidiaries” and is
amortized using the straight-line method over five years. When the cost of the acquisition is less
than the Company’s interest in the net assets of the Subsidiaries, the excess is recognized as
“Excess of Interest in Net Assets of Subsidiary Over Cost” (included as part of Other Payables in
the consolidated balance sheets) and is amortized using the straight-line method over 20 years.
In accordance with PSAK No. 40, “Accounting for Changes in Equity of Subsidiary/Associated
Company”, the differences between the carrying values of the Company’s investments in shares of
share and its corresponding proportionate equity share in the underlying net asset values of its
Subsidiaries and/or associated companies arising from changes in the latter’s equity, which are not
resulting from transactions between the Company and the subject Subsidiaries/associated
companies, are presented as a separate item under the Shareholders’ Equity section of the
consolidated sheets as “Differences Arising from Changes in Equity of Subsidiary”.
c. Cash equivalents
Time deposits with maturities of three months or less at the time of placement, which are not
restricted as to withdrawal or are not pledged as collateral for loans, are classified as “Cash
Equivalents”. Cash in banks and time deposits which are restricted or pledged are presented as
part of “Other Assets”.
d. Investments
Prior to 2010, investment in shares of share wherein the Company’s ownership interest is at least
20% but not exceeding 50% is accounted for under the equity method, whereby the cost of the
investment is increased or decreased by the Company’s share in the net earnings or losses of the
associated company and reduced by the dividends received.
In accordance with PSAK No. 15 on “Accounting for Investments in Associated Companies”, under
the equity method, if an investor’s share in the losses of an investee equals or exceeds the
carrying amount of the investment, the investment shall be reported at zero value. Subsequent
losses will be absorbed with a credit to liability only if the investor has guaranteed to pay the
investee’s liabilities. If the investee subsequently reports a profit, the investor will recognize income
only after its share in the profit exceeds its share in the net losses not recognized or absorbed.
Starting 2010, investment on share of share wherein the Company’s ownership interest is less
than 20% is classified as financial asset available for sale and is determined based on the policies
outlined in Note 2v.
e. Allowance for impairment
Prior to 2010, allowance for impairment was provided based on a review of the status of the
individual receivables at the end of the year. Starting 2010, the allowance, if any, is determined
based on the policies outlined in Note 2v.
12
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
f.
Transactions with related parties
The Company and Subsidiaries have transactions with certain parties which are regarded as
having related party relationships as described by PSAK No. 7 on “Related Party Disclosures”.
Significant transactions with related parties are disclosed in Note 31.
g. Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is determined by the
specific identification method.
The cost of land under development consists of cost of undeveloped land, direct and indirect
development costs related to real estate development activities and borrowing costs. Land under
development is transferred to lots available for sale when the land development is completed. Total
project cost is allocated proportionately to the saleable lots based on their respective areas.
The cost of land development, including land which is used for roads and infrastructure or other
unsaleable area, is allocated to the saleable area.
The cost of buildings and apartements under construction is transferred to houses, shops and
apartments (strata title) available for sale when the construction is substantially completed.
For residential property project, its cost is classified as part of inventories upon the commencement
of development and construction of infrastructure. For commercial property project, upon the
completion of development and construction of infrastructure, its cost remains as part of
inventories or is reclassified to the related fixed asset account, whichever is more appropriate.
Other inventories, consisting of food, beverages and other inventories, are stated at cost or net
realizable value, whichever is lower. Cost is determined using the first-in, first-out method (FIFO).
h. Prepaid expenses
Prepaid expenses are amortized over their beneficial periods.
i.
Undeveloped land
Undeveloped land is stated at cost or net realizable value, whichever is lower.
The cost of undeveloped land, consisting of pre-acquisition and acquisition cost of land, is
transferred to land under development upon commencement of land development.
j.
Fixed assets
Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any, except
for land which is not depreciated. Such cost includes the cost of replacing part of the fixed assets
when that cost is incurred, if the recognition criteria are met.
Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of
the fixed assets as a replacement if the recognition criteria are met. All other repairs and
maintenance costs that do not meet the recognition criteria are recognized in the consolidated
statements of income as incurred.
Depreciation is computed using the straight-line method over the estimated useful lives of the
assets as follows:
Years
Buildings and infrastructures
Hotel facilities
Machinery and heavy equipment
2 - 40
2-5
10
13
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Years
Vehicles
Furniture and office equipment
5 - 10
2-5
Construction in progress is stated at cost and is accounted as part of fixed assets.
The accumulated costs will be reclassified to the appropriate fixed assets or investment properties
account when the construction is completed and the constructed asset is ready for its intended
use.
In accordance with PSAK No. 47 on “Accounting for Land”, land is stated at cost and is not
depreciated. Certain costs incurred relating to the cost or renewal of the legal title of a landright are
deferred (included as part of Other Assets) and amortized over the estimated useful life of the
landright or the term of the landright, whichever period is shorter.
An item of fixed assets is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the
asset) is credited or charged to operations in the year the asset is derecognized.
The fixed assets’ residual values, useful lives and methods of depreciation are reviewed and
adjusted prospectively, if appropriate, at each financial year end.
k. Investment properties
Investment properties are stated at cost including the transaction cost less accumulated
depreciation and impairment loss, if any, except for land which is not depreciated. Such cost
includes the cost of replacing part of the investment properties, if the recognition criteria are met,
and excludes the daily expenses on their usage.
Investment properties consist of land, building and infrastructures, and machinery and heavy
equipment held by the Company and Subsidiaries to earn rentals or for capital appreciation or
both, rather than for use in the production or supply of goods or services or for administrative
purposes or sale in the ordinary course of business.
Depreciation is computed using the straight-line method over the estimated useful lives of the
investment properties as follows:
Years
Buildings and infrastructures
Machinery and heavy equipment
3 - 40
10
An investment property should be derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
Gain or loss arising from the retirement or disposal of investment property is credited or charged to
operations in the year the asset is derecognized.
Transfers to investment property should be made when, and only when, there is a change in use,
evidenced by the end of owner-occupation, commencement of an operating lease to another party
or end of construction or development. Transfers from investment property should be made when,
and only when, there is a change in use, evidenced by the commencement of owner-occupation or
commencement of development with a view to sell.
For a transfer from investment properties to owner-occupied property, the Company uses the cost
method at the date of change in use. If an owner-occupied property becomes an investment
property, the Company records the investment property in accordance with the fixed assets
policies up to the date of change in use.
14
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
l.
Capitalization of borrowing costs
In accordance with PSAK No. 26 (Revised 1997) on “Borrowing Costs”, borrowing costs are
generally expensed as incurred. Borrowing costs are capitalized if they are directly attributable to
the acquisition, construction or production of a qualifying asset. Capitalization of borrowing costs
commences when the activities to prepare the asset for its intended use or sale are in progress
and the expenditures and borrowing costs are being incurred. Borrowing costs are capitalized until
the assets are ready for their intended use. If the resulting carrying amount of the asset exceeds
its recoverable amount or net realizable value, an impairment loss is recognized.
m. Impairment of non-financial asset value
The recoverable amount of an asset is estimated whenever events or changes in circumstances
indicate that its carrying amount may not be fully recoverable. Impairment in asset value, if any, is
recognized as loss in the current year’s consolidated statement of income.
n. Share issuance costs
Costs incurred in connection with the issuance of capital share are presented as a deduction from
additional paid-in-capital.
o.
Revenue and expense recognition
Revenues from real estate sales are recognized in accordance with PSAK No. 44 on “Accounting
for Real Estate Activities” as follows:
(i) 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 subordinated to other loan 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.
(ii) 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 in the
future.
4. The land development process is complete so that the seller has no further obligations
related to the lots sold.
5. Only the lots are sold, without any requirement of the seller’s involvement in the
construction of the building on the lots.
(iii) 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
15
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
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.
Revenue from other hotel services is recognized when the services are rendered or the goods are
delivered.
Expenses are recognized when incurred.
p. 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. 13/2003 dated March 25, 2003 (“the Law”) and PSAK No. 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 contribution 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 No. 24 (Revised 2004), the cost of providing employee benefits under the Law is
determined using the projected-unit-credit actuarial valuation 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.
q. 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 balance sheet date, monetary assets and liabilities
denominated in foreign currencies are adjusted to reflect the prevailing rates as of balance sheet
date and the resulting gains or losses are credited or charged to current operations.
16
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
As of June 30, 2011 and 2010 and December 31, 2010, the rates of exchange used were as
follows (full amount) :
30 June 2011
1 European euro (Euro)
31 December 2010
30 June 2010
12,462
11,956
11,087
1 United States dollar (US$)
8,597
8,991
9,083
1 Singapore dollar (Sin$)
6,985
6,981
6,481
Transactions in other foreign currencies are considered not significant.
r.
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. 71/2008 (PP No.
71/2008) on “the third changes on PP No. 48/1994 regarding payment of income tax on income
from transfer rights on land and/or building”. This regulation provides that, effective 1 January
2009, the income of a taxpayer from transactions of transferring rights on land and/or building, will
be subjected to final tax of 5%.
Final income tax
The differences between the carrying amounts of existing assets or liabilities related to the final
income tax and their respective tax bases are not recognized as deferred tax assets or liabilities.
Current tax expense related to income subject to final income tax is recognized in proportion to
total income recognized during the current year for accounting purposes. The difference between
the final income tax paid and the amount charged as final income tax expense in the statements of
income is recognized as prepaid tax or tax payable.
Non-final income tax
Current tax expense is provided based on the estimated taxable income for the year which is
subject to non-final income tax rates. Deferred tax assets and liabilities are recognized for the
temporary differences between the financial and the tax bases of assets and liabilities at each
reporting date. Future tax benefits, such as the carry-forward of unused tax losses, are also
recognized to the extent that realization of such benefits is probable.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance sheet date. Changes in the carrying
amount of deferred tax assets and liabilities due to a change in tax rates are charged or credited to
current year operations, except to the extent that they relate to items previously charged or
credited to shareholders’ equity.
Amendment to a tax obligation is recorded when an assessment is received or, if appealed against
by the Company or Subsidiaries, when the result of the appeal is determined.
s. Earnings per share
In accordance with PSAK No. 56 on “Earnings per Share”, basic earnings per share amount is
calculated by dividing net income for the year by the weighted average number of outstanding
shares during the year.
Diluted earnings per share amount is computed by dividing net income by the weighted average
number of shares outstanding as adjusted for the effects of all potentially dilutive ordinary shares
(i.e. warrants).
17
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
t.
Segment reporting
The Company and Subsidiaries follow PSAK No. 5 (Revised 2000) which requires the presentation
of financial information based on business segment and geographical segment. In accordance with
the Company’s and Subsidiaries’ organizational and management structure and internal reporting
system, the primary segment reporting of financial information is presented based on business
segment as the risks and returns are dominantly affected by their different business activities.
The secondary segment reporting based on geographical location is not presented since all of the
Company’s and Subsidiaries’ business activities are located in Jabotabek.
Financial information segment reporting as required by PSAK No. 5 (Revised 2000) is presented in
Note 36.
u. Use of estimates
The preparation of consolidated financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
amounts reported therein. Due to inherent uncertainty in making estimates, actual results reported
in future periods might be based on amounts which differ from those estimates.
v. Financial instruments
Starting 1 January 2010, the Company and Subsidiaries have applied PSAK No. 50 (Revised
2006), “Financial Instruments: Presentation and Disclosures”, and PSAK No. 55 (Revised 2006),
“Financial Instrument: Recognition and Measurement”, which superseded PSAK No. 50,
“Accounting for Certain Investment in Securities”, and PSAK No. 55 (Revised 1999), “Accounting
for Derivative Instruments and Hedging Activities”. PSAK No. 50 (Revised 2006) and PSAK No. 55
(Revised 2006) were applied prospectively.
PSAK No. 50 (Revised 2006) contains the requirements for the presentation of financial
instruments and identifies the information that should be disclosed. The presentation requirements
apply to the classification of financial instruments, from the perspective of the issuer, into financial
assets, financial liabilities and equity instruments; the classification of related interest, dividends,
losses and gains, and the circumstances in which financial assets and financial liabilities must be
offset. This PSAK requires the disclosure of, among others, information about factors that affect
the amount, timing and certainty of an entity’s future cash flows relating to financial instruments
and the accounting policies applied to those instruments.
PSAK No. 55 established the principles for recognizing and measuring financial assets, financial
liabilities, and some contracts to buy or sell non-financial items. This PSAK provides the definitions
and characteristics of a derivative, the categories of financial instruments, recognition and
measurement, hedge accounting and determination of hedging relationships, among others.
The transition effect from the prospective adoption of the above revised PSAK’s which amounted
to Rp3,292,140 has been recorded in the retained earnings at 1 January 2010.
i.
Financial Assets
Initial Recognition
Financial assets within the scope of PSAK No. 55 (Revised 2006) are classified as financial
assets at fair value through profit or loss, loans and receivables, held-to-maturity investments
and available-for-sale financial assets. The Company and Subsidiaries determine the
classification of their financial assets at initial recognition and, where allowed and appropriate,
re-evaluate this designation at each financial year end.
18
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
Financial assets are recognized initially at fair value plus, in the case of investments not at fair
value through profit or loss, directly attributable transaction costs.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way purchases) are
recognized on the trade date, i.e., the date that the Company and Subsidiaries commit to
purchase or sell the assets.
The Company and Subsidiaries have determined financial assets are categorized as loans
and receivables and available-for-sale financial assets.
Subsequent Measurement
●
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Such financial assets are carried at
amortized cost using the effective interest rate method. Gains and losses are recognized
in the consolidated statements of income when the loans and receivables are
derecognized or impaired, as well as through the amortization process.
As of 31 December 2010, the Company’s and Subsidiaries’ have cash and cash
equivalents, trade and other receivables, due from related parties and other assetsrestricted time deposits and cash in bank in this category.
●
Available-For-Sale (AFS) financial assets
AFS financial assets are non-derivative financial assets that are designated as availablefor-sale or are not classified as fair value through profit and loss, loans and receivables
and held to maturity. After initial measurement, AFS financial assets are measured at fair
value with unrealized gains or losses recognized in the shareholder’s equity until the
investment is derecognized. At that time, the cumulative gain or loss previously recognized
in the shareholder’s equity shall be reclassified to profit or loss as a reclassification
adjustment.
The Company and Subsidiaries have other investments in shares of share that do not
have readily determinable fair value in which the ownership of equity interest is less than
20%. These investments are carried at cost.
ii.
Financial Liabilities
Initial Recognition
Financial liabilities within the scope of PSAK No. 55 (Revised 2006) are classified as financial
liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated
as hedging instruments in an effective hedge, as appropriate. The Company and Subsidiaries
determine the classification of their financial liabilities at initial recognition.
Financial liabilities are recognized initially at fair value which, in the case of loans and
borrowings, is inclusive of directly attributable transaction costs.
As of 31 December 2010, the Company’s and Subsidiaries’ financial liabilities include loans
from banks and financing institution, bonds payable and sukuk ijarah - net, trade payables to
third parties, other payables, due to related parties, accrued expenses, and deposits received customer deposit and derivative liability.
The Company and Subsidiaries have determined that financial liabilities are categorized as
19
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
loans and borrowings and measured at fair value through profit or loss.
Subsequent Measurement
●
Loans and borrowings
After initial recognition, loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method.
Gains and losses are recognized in the consolidated statements of income when the
liabilities are derecognized as well as through the amortization process.
●
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition at fair value through profit
or loss.
Financial liabilities are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Derivative liabilities are also classified as held for
trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the consolidated statements
of income.
iii. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the
consolidated balance sheets if, and only if, there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a net basis, or to realize the
assets and settle the liabilities simultaneously.
iv. Fair value of financial instruments
The fair value of financial instruments that are actively traded in organized financial markets is
determined by reference to quoted market bid prices at the close of business at the end of the
reporting year. For financial instruments where there is no active market, fair value is
determined using valuation techniques. Such techniques may include using recent arm’s
length market transaction, reference to the current fair value of another instrument that is
substantially the same, discounted cash flow analysis, or other valuation models.
Credit Risk Adjustment
The Company and Subsidiaries adjust the price in the more observable market to reflect any
differences in counterparty credit risk between instruments traded in that market and the ones
being valued for financial asset positions. In determining the fair value of financial liability
positions, the Company’s and Subsidiaries’ own credit risk associated with the instrument is
taken into account.
v.
Amortized cost of financial instruments
Amortized cost is computed using the effective interest rate method less any allowance for
impairment and principal repayment or reduction. The calculation takes into account any
premium or discount on acquisition and includes transaction costs and fees that are an integral
part of the effective interest rate.
20
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Six-months Ended 30 June 2011 (unaudited) and for 31 December 2010 (audited)
(Expressed in thousands of rupiah, unless otherwise stated)
vi. Impairment of financial assets
The Company and Subsidiaries assess at each balance sheet date whether there is any
objective evidence that a financial asset or a group of financial assets is impaired.
●
Loans and receivables
For loans and receivables carried at amortized cost, the Company and Subsidiaries first
assess whether objective evidence of impairment exists individually for financial assets
that are individually significant, or collectively for financial assets that are not individually
significant. If the Company and Subsidiaries determine that no objective evidence of
impairment exists for an individually assessed financial asset, whether significant or not,
the asset is included in a group of financial assets with similar credit risk characteristics,
and the group is collectively assessed for impairment. Assets that are individually
assessed for impairment and for which an impairment loss is, or continues to be,
recognized are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has occurred, the amount of the loss
is measured as the difference between the asset’s carrying amount and the present value
of estimated future cash flows (excluding future expected credit losses that have not yet
been incurred). The present value of the estimated future cash flows is discounted at the
financial asset’s original effective interest rate. If a ”loans and receivables” financial asset
has a variable interest rate, the discount rate for measuring impairment loss is the current
effective interest rate.
The carrying amount of the financial asset is reduced through the use of an allowance for
impairment account and the amount of the loss is recognized in the consolidated
statements of in