Basis of Presentation of the Financial Satement

Basis of Presentation of the Financial Satement

The company’s financial statements must prepare in accordance with Indonesia Financial Accounting Standards ( SAK ), which comprise the Statements of Financial Accounting Standards (PSAKs) and Interpretations to Financial Accounting Standards (ISAKs) issued by the Financial Accounting Standards Board of Indonesian Institute of Accountants, and Rule No. VIII G 7 Attachment of chairman of BAPEPAM’s decisiion No. KEP-06/PM/2000 dated march 13, 2000 on the Regulations and the Guidelines on Financial Statement Presentation and Disclousures issued by Capital Market and Financial Institution Supervisory Agency (BAPEPAM-LK). As disclosed futher in the relevant succeeding notes, several amnded and published accounting standards were adopted effective January 1, 2011, prospectively or retrospectively.

The presentation of company’s financial statements are prepared in accordance with PSAK No.1 “ Presentation of Financial Statement”.

PSAK No.1 (revised 2009) regulalated the presentation of financial statement as to, among others, the objective, components of financial statements, fair presentation, materiality and aggregation, offsetting, disctinction between current and non-current assets, liabilities,comparative information, and introduces new disclousures, such a key estimations and judgments, capital management, other comprehensive income, departures from accounting standards, and statement of compliance.

The adoption of PSAK No.1 (revised 2009) has significant impacts on the related presentation and disclosures in the company’s financial statements.

The accounting policies adopted in the preparation of the company’s financial statements are  consistent with those made in the preparation of the company’s financial statements for he year ended December 31, 2010 except for the adoption of saveral amanded SAKs effective January 1, 2011 as a disclosed in  this note.

The Company’s financial statements, except for the statement of cash flows are prepared based on the direct method by classifying cash flows on the basis of operating, investing and financing activities.

Effective January 1, 2011 the Company has adopted PSAK No.2 (revised 2009), “Statement of Cash Flows “ , wich superseded PSAK Nno.2 (revised 2009) with the same title. The emplementation of PSAK No2 (revised 2009) does not have significant impact in the Company’s financial statements.

The financial reporting period of the Company is January 1 – December 31.

The reporting currency used in the preparation of the financial statements is the Indinesian Rupiah.