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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)
3.23 Employee benefts (cont’d)
(a) Defned contribution plans (cont’d)
Certain subsidiaries in the Group have defned contribution retirement plans covering all of its qualifed permanent employees.
The Group’s contributions to the funds are computed at 10.0% and 7.0% of the basic pensionable income for staff and
non-staff employees, respectively. The related liability arising from the difference between the cumulative funding since the
establishment of the program and the cumulative pension costs charged to the consolidated statement of comprehensive
income during the same period is recognised as employee benefts liabilities in the consolidated balance sheet.
(b) Defned beneft plans
The Group also provides additional provisions for employee service entitlements in order to meet the minimum benefts
required to be paid to qualifed employees, as required under the Indonesian Labour Law No.13/2003 (the “Labour Law”).
The said additional provisions, which are unfunded, are estimated using actuarial calculations.
Actuarial gains or losses are recognised in the consolidated statement of comprehensive income when the net cumulative
unrecognised actuarial gains or losses at the end of the previous reporting year exceed 10.0% of the defned beneft obligation
at that date. Such gains or losses in excess of the 10.0% corridor are amortised on a straight-line method over the expected
average remaining service years of the covered employees.
Past service cost is recognised as an expense on a straight-line basis over the average period until the beneft becomes
vested. To the extent that the beneft is already vested immediately following the introduction of, or changes to, the employee
beneft program, the Group recognises past service cost immediately.
The related estimated liability for employee benefts is the aggregate of the present value of the defned beneft obligations
at each reporting period and unrecognised actuarial gains and losses, less unrecognised past service cost.
3.24 Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception
date: whether fulflment of the arrangement is dependent on the use of a specifc asset or assets or the arrangement conveys a
right to use the asset, even if that right is not explicitly specifed in an arrangement.
For arrangements entered into prior to 1 January 2005, the date of inception is deemed to be 1 January 2005 in accordance with
the transitional requirements of INT FRS 104.
(a) As lessee
Finance leases, which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased
item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the
minimum lease payments. Any initial direct costs are also added to the amount capitalised. Lease payments are apportioned
between the fnance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are charged to the consolidated statement of comprehensive income. Contingent
rents, if any, are charged as expenses in the periods in which they are incurred.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there
is no reasonable certainty that the Group will obtain ownership by the end of the lease term.
Operating lease payments are recognised as an expense in the consolidated statement of comprehensive income on a
straight-line basis over the lease term. The aggregate beneft of incentives provided by the lessor is recognised as a reduction
of rental expense over the lease term on a straight-line basis.
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