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Notes to the Financial Statements
For the fnancial year ended 31 December 2012
3. Summary of significant accounting policies (cont’d)
3.5 Transactions with non-controlling interests (cont’d)
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests are adjusted to refect
the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest
is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the
Company.
3.6 Foreign currency
The Group’s consolidated fnancial statements are presented in Indonesian Rupiah (“Rp”), which is also the Company’s functional
currency. Each entity in the Group determines its own functional currency and items included in the fnancial statements of each
entity are measured using that functional currency.
(a) Transactions and balances
Transactions in foreign currencies are measured in the respective functional currencies of the Company and its subsidiaries
and are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the
transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange
ruling at the end of the reporting period. Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured
at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting
period are recognised in proft or loss except for exchange differences arising on monetary items that form part of the Group’s
net investment in foreign operations, which are recognised initially in other comprehensive income and accumulated under
foreign currency translation reserve in equity. The foreign currency translation reserve is reclassifed from equity to proft or
loss of the Group on disposal of the foreign operation.
(b) Consolidated fnancial statements
For consolidation purpose, the assets and liabilities of foreign operations are translated into Rp at the rate of exchange
ruling at the end of the reporting period and their proft or loss are translated at the exchange rates prevailing at the date of
the transactions. The exchange differences arising on the translation are recognised in other comprehensive income. On
disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation
is recognised in proft or loss.
In the case of a partial disposal without loss of control of a subsidiary that includes a foreign operation, the proportionate share
of the cumulative amount of the exchange differences are re-attributed to non-controlling interest and are not recognised
in proft or loss. For partial disposals of associates or jointly controlled entities that are foreign operations, the proportionate
share of the accumulated exchange differences is reclassifed to proft or loss.
3.7 Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to initial recognition, property, plant and
equipment are stated at cost less accumulated depreciation and any impairment losses. The cost of an item of property, plant and
equipment is recognised as an asset if, and only if, it is probable that future economic benefts associated with the item will fow to
the Group and the cost of the item can be measured reliably. The cost of an asset comprises its purchase price and any directly
attributable costs of bringing the asset to working condition for its intended use. Such cost also includes the initial estimation of
costs of dismantling and removing the item and restoring the sites of plants on which they are located, and the cost of replacing
part of such property, plant and equipment when that cost is incurred.
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