PT Summarecon Agung Tbk | Laporan Tahunan 2010 Annual Report

These consolidated financial statements are originally issued in Indonesian language.
7. INVENTORIES (continued)
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)
Real estate development inventories which are already covered by signed sales/purchase agreements
but have not yet been recognized as sales are as follows:
30
2010 2009
Inventories available for sale
Houses 85,827,964 5,787,871
Shop houses 4,711,304 2,193,412
Total inventories available for sale 90,539,268 7,981,283
Inventories under development/construction
Buildings 267,071,762 206,750,845
Total 357,611,030 214,732,128
As of December 31, 2010, inventories in such properties known as Royal Orchard 1, Ebony, Clover,
New Batavia, Beryl, Jasmine, PHG-Jade, and PHG-Turquoise are available for sale, and inventories in
Royal Orchard 2, Royal Orchard 3, Graha Boulevard, Palm Residence, Maple Residence, Acacia
Residence, Crown, Dalton, Darwin, Grisea, Canary, Pascal, and New Jasmine are under
development/construction.
As of December 31, 2009, inventories in such properties known as Royal Orchard 1, Beryl, Jasmine,
Flourite, Opal, The Kew Garden Residence, The Nirwana Garden and New Batavia are available for
sale, and inventories in Beryl, Crystal, Jasmine, Flourite, Jade, Garnet, Emerald, Aquamarine, Topaz,
Cluster Chrysocolla, Newton, Crown, Scentia Garden, New Jasmine, Saphire, Ebony, Clover, Royal
Orchard 2 and 3, Graha Park View, and Graha SKG are under development/construction.
The borrowing costs which were capitalized to inventories amounted to Rp2,916,692 (Notes 14 and
15) and Rp5,176,450 (Note 15) in 2010 and 2009, respectively.
Houses, shop houses and apartment inventories are covered by insurance against fire and other risks
with PT Asuransi Allianz Indonesia, PT Asuransi AXA Indonesia, PT Asuransi Jaya Proteksi,
PT Kurnia Insurance Indonesia, PT Asuransi Indrapura, ACE INA Insurance, PT Tri Dharma Proteksi,
PT MAA General Assurance, and PT Asuransi Ekspor Indonesia, all third parties, with total coverage
of US$35,225,000 and Rp382,447,961 in 2010 and US$36,225,000 and Rp166,833,152 in 2009. The
Company's and Subsidiaries’ management are of the opinion that the above coverage is adequate to
cover possible losses arising from such risks.
As of December 31, 2010 and 2009, inventories are not used as collateral for any loans.
The Company’s and Subsidiaries’ management believe that inventories are realizable at the above
amounts and no provision for losses is necessary.
8. PREPAID EXPENSES
This account consists of prepayments to third parties for:
2010 2009
Insurance 2,181,333 1,936,297
Rent 12,500 247,044
Others 3,602,303 3,366,423
Total prepaid expenses 5,796,136 5,549,764