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)
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.
As of December 31, 2010 and 2009, the rates of exchange used were as follows:
17
2010 2009
(Full amounts) (Full amounts)
1 European euro (Euro) 11,956 13,510
1 United States dollar (US$) 8,991 9,400
1 Singapore dollar (Sin$) 6,981 6,699
Transactions in other foreign currencies are considered not significant.
r. Income tax
Based on Government Regulation No. 5 dated March 23, 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 November 4, 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
January 1, 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 stockholders’ 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.