The original consolidated financial statements included herein are in the

The original consolidated financial statements

This preview shows page 31 - 33 out of 98 pages.

The original consolidated financial statements included herein are in the Indonesian language. PT ALKINDO NARATAMA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As Of September 30, 2018, December 31, 2017 And December 31, 2016 And For The Nine-Month Periods Ended September 30, 2018 And September 30, 2017 (Unaudited) And For The Years Ended December 31, 2017 And December 31, 2016 (Expressed in Rupiah, Unless Otherwise Stated) 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Company will not be able to collect the amounts due according to the original terms of the receivables. The carrying amount is reduced through the use of an allowance account, based on management’s review of the status of each account at the end of the financial period. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the consolidated statement of profit or loss and other comprehensive income. h. Inventories The Company and its Subsidiaries applied SFAS No. 14 (Revised 2014), “Inventories”. Inventories are stated at the lower of cost or net realizable value. Cost is determined by the average method. Net realizable value is estimated based on the selling price in the ordinary course of business subtracting the estimated cost to sell the inventory. Allowance for obsolete and slow moving inventories is determined based on a review of the inventory condition at the end of the period/ year. i. Prepaid Expenses Prepaid expenses which still have useful life, are amortized over the periods benefited using straight- line method. j. Fixed Assets The Company and its Subsidiaries applied SFAS No. 16 (Revised 2015), “Fixed Assets”. The Company and its Subsidiaries have chosen the cost model for the measurement of its fixed assets. Fixed assets are stated at cost less accumulated depreciation and impairment losses. Such cost includes the cost of replacing part of the fixed assets when that cost is incurred, if the recognition criteria are met. Likewise, when a major inspection is perfomed, its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied. All other repairs and maintenance costs that do not meet the recognition criteria are recognized in consolidated statement of profit or loss and other comprehensive income as incurred. 23
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The original consolidated financial statements included herein are in the Indonesian language.
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  • Summer '18
  • bambang s

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