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)
v. Financial instruments (continued)
ii. Financial Liabilities
Initial Recognition
Financial liabilities within the scope of PSAK No. 55 (Revised 2006) are classified as financial
liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated
as hedging instruments in an effective hedge, as appropriate. The Company and Subsidiaries
determine the classification of their financial liabilities at initial recognition.
Financial liabilities are recognized initially at fair value which, in the case of loans and
borrowings, is inclusive of directly attributable transaction costs.
As of December 31, 2010, the Company’s and Subsidiaries’ financial liabilities include loans
from banks and financing institution, bonds payable and sukuk ijarah - net, trade payables to
third parties, other payables, due to related parties, accrued expenses, and deposits received -
customer deposit and derivative liability.
The Company and Subsidiaries have determined that financial liabilities are categorized as
loans and borrowings and measured at fair value through profit or loss.
Subsequent Measurement
● Loans and borrowings
After initial recognition, loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method.
Gains and losses are recognized in the consolidated statements of income when the
liabilities are derecognized as well as through the amortization process.
● Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition at fair value through profit
or loss.
Financial liabilities are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Derivative liabilities are also classified as held for
trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the consolidated statements
of income.
iii. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the
consolidated balance sheets if, and only if, there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a net basis, or to realize the
assets and settle the liabilities simultaneously.
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