PT Summarecon Agung Tbk | Laporan Tahunan 2010 Annual Report

These consolidated financial statements are originally issued in Indonesian language.
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2010 and 2009
(Expressed in thousands of rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o. Revenue and expense recognition (continued)
(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
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.
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