This document presents the statement of financial position and statement of comprehensive income for PT Luber and PT Al Caisario as of 31 December 2011 and 2010 respectively. The statement of financial position of PT Luber shows total assets of Rp3.8 billion consisting of current assets, property and equipment, long term investments and intangible assets. Total liabilities are Rp2.7 billion comprising current and non-current liabilities. Total equity is Rp1.1 billion. The statement of comprehensive income of PT Al Caisario for the year ended 31 December 2010 shows net income of Rp86 billion comprising income from continuing and discontinued operations, offset by comprehensive loss of Rp14 billion.

1. PT LUBER
STATEMENT OF FINANCIAL POSITION
31-Dec-11
(in Rp 000)
ASSETS LIABILITIES
CURRENT ASSET CURRENT LIABILITIES
cash 140,000 account payable 375,000
account receivable 435,000 notes payable 90,000
less : AFDA (25,000) dividend payable 161,250
inventories 673,000 accrued liabilities 96,000
trading securities 153,000 total current liabilities 722,250
total current assets 1,376,000
NONCURRENT LIABILITIES
PPE notes payable 875,000
land 165,000 bonds payable 1 ,000,000
building 1 ,040,000 provision for pension 60,000
less : acc depr - building ( 312,000) total noncurrent liabilities 1,935,000
equipment 600,000
less : acc depr - equipment ( 193,750) total liabilities 2,657,250
total PPE 1,299,250
EQUITY
LONG TERM INVESTMENT share capital ordinary 1 ,000,000
inv in bond 322,700 retained earnings 308,400
inv in share capital ordinary 282,000 AOCI 34,000
land held for future plant site 95,000 less : treasury shares ( 192,700)
cash restricted for future plant site 77,000 total equity 1,149,700
total LT Investment 776,700
INTANGIBLE ASSETS
patent 195,000
franchise 160,000
total intangible asset 355,000
TOTAL ASSETS 3,806,950 TOTAL LIABILITIES AND EQUITIES 3,806,950

2. PT AL Caisario
Statement of Comprehensive Income
for the period ended December 31, 2010
(stated in Rupiah)
Sales 750,000,000
Costof Goods Sold (245,750,000)
Gross Profit 504,250,000
Operating Expenses:
Selling and Administrative Expense (115,000,000)
Depreciation Expense (24,296,500) (139,296,500)
Operating Income 364,953,500
Other Income (Expenses):
Loss from collapsing building (175,000,000)
Loss from sale of Investment (22,000,000)
Loss due to decline in Inventory (4,500,000) (201,500,000)
Income Before Tax 163,453,500
Income Tax Expense (49,036,050)
Income from Continuing Operations 114,417,450
Discontinued Operations:
Loss incurred by discontinued operation (65,000,000)
Gain on sale of division 2 5,000,000
3. Solution Inventory
Part A (15%)
1. Average Perpetual
a. Ending Inventory = 200*10.3=2,060
Date Purchased Sold Balance
1 200@10 200@10
5 300@10.5 500@10.30
10 300@10.3 200@10.30
15 350@10.2 550@10.24
18 300@10.24 250@10.24
20 150@10.4
400@10.30
27
200@10.30 200@10.30
b. Dec. 20
Inventory $ 1,560
Accounts Payable $ 1,560
Dec. 27
(40,000,000)
income tax on sale of operation 1 2,000,000 (28,000,000)
Net income 8 6,417,450
Other Comprehensive Income10/29/2011
Unrealized holding loss on -AFS (14,000,000)
Comprehensive Income 7 2,417,450

3. *) Accounts Receivable $ 3,000
Sales $ 3,000
*) COGS $ 2,060
Inventory $ 2,060
2. FIFO periodic
a. Ending Inventory (unit) = 200 + 300 + 350 + 150 – 300 – 300 – 200 =200 units
Ending inventory (cost) = 150*10.4 + 50*10.2 = $ 2,070
b. Dec. 15
Purchase $ 3,570
Accounts Payable $ 3,570
Dec. 18
Accounts Receivable $ 4,200
Sales $ 4,200
c. Inventory (ending) $ 2,172
COGS $ 8,210
Inventory Short and Over $ 102
Purchase $ 8,280
Inventory (beginning) $ 2,000
d. NRV/unit = $13.1 - $3.00 = $10.1
Total NRV of inventory=$10.1*210=$2,121
Inventory (cost) = $2,172
Loss due to decline value of Inventory = $51
Journal:
Loss due to decline value of Inv. $51
Allowance to reduce Inv. to NRV $51
e. Allowance to reduce Inv. to NRV $21 (0.1*210)
Recovery of Inventory Loss $21
Part B (5%)
Beginning inventory $ 170,000
Add: Purchases 980,000
Cost of goods available 1,150,000
Sales $1,400,000
Less 40% (560,000) 840,000
Estimated inventory lost $ 310,000
4. Solution RECEIVABLE
PART 1
Individually assessed receivables
PT. A 15.000.000
PT. D 60.000.000
Collectivelly assessed receivables
Current 150.000.000
+ PT B 100.000.000

4. + PT C 50.000.000+ 300.000.000 x 5% = 15.000.000
1-30 days 45.000.000 x 20% = 9.000.000
31-60 days 50.000.000 x 35% = 17.500.000
61-180 days 45.000.000 x 65% = 29.250.000
181-365 days 50.000.000 x 90% = 45.000.000
>365 days 45.000.000 x 100% = 45.000.000+
TOTAL LOSS ON IMPARMENT 235.750.000
Jurnal untuk mencatat loss on impairment:
Bad debt expense............................................ 235.750.000
Allowance for Doubful Account........................ 235.750.000
PART 2
On 1 january 2011, Notes receivable face value 2.000.000.000, 4 thn, notes interest 12%, market
rate 10% , interest per year = 12% x 2 Miliar = 240 juta
On 31 december 2011, PT GHI experinced financial difficulty. They will pay all of te accrued
interest and rest of interests and principal can only be paid 65%.
1. Prepare the schedule of effective interest method
Present Value Notes Receivable = PV face value + PV interest
= (2 miliar x 0,68301) + (240 juta x 3,16986)
= 1.366.020.000 + 760.766.400
= 2.126.786.400(premium)
Schedule of Note Premium Amortization
Effective-Interest Method
12% Note Discounted at 10%
Date Cash
received
Interest Revenue
(10%xCarry.amount)
Premi amortization Carrying Amount
01 jan 11 2.126.786.400
31 dec 11 240 juta 212.678.640 27.321.360 2.099.465.040
31 dec 12 240 juta 209.946.504 30.053.496 2.069.411.544
31 dec 13 240 juta 206.941.154,4 33.058.845,6 2.036.352.698
31 dec 14 240 juta 203.635.269,8 36.352.698 2.000.000.000
2. Calculate impairment loss of receivable
Impaired loan cash flow
Date Contractual cah
flow
Expected Cash
Flow
Loss on Cash Flow
31 dec 11 240 juta 240 juta 0
31 dec 12 240 juta 156 juta 84 juta
31 dec 13 240 juta 156 juta 84 juta
31 dec 14 2.240 juta 1.456 juta 784 juta
Total Cash Flow 2.960 juta 2.008 juta 952 juta

5. Impairment :
Recorded investement (carrying amount at 31 dec 2011) 2.099.465.040
PV face value (65%x2 miliarx0,75132) 976.716.000
PV interest (65% x 240 juta x 2,48685) 387.948.600
Accrued Interest 240.000.000+ 1.604.664.600 -
Loss on impairment 494.800.440
3. Jurnal untuk mencatat transaksi receivable:
1 jan 2011
Notes Receivable............................................ 2.126.786.400
Cash............................................................. 2.126.786.400
(record the receipts of the note)
31 dec 2011
Interest receivable............................................ 240.000.000
Notes Receivable............................................................. 27.321.360
Interest revenue............................................................... 212.678.640
(record interest revenue)
Bad debt expense............................................ 494.800.440
Allowance for Doubful Account........................ 494.800.440
(record loss on impairment notes receivable)
Problem 5
1. Comparability.
2. Periodicity.
3. Matching.
4. Economic entity.