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)
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).
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 January 1, 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“Financial Instrument: Recognition and Measurement”, which superseded PSAK No. 50,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.
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