PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
28
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
q. Revenue and expense recognition continued vi. Other telecommunications services revenues
Revenues from other telecommunications services consist of sales of other telecommunication services or goods. Revenues are recognized upon completion of services
or delivery of goods to customers.
vii. Expenses Expenses are recognized on accrual basis. Unutilized promotional credits are netted against
unearned income. r. Employee benefits
i. Pension and post-retirement health care benefit plans
The net obligations in respect of the defined pension benefit and post-retirement health care benefit plans are calculated at the present value of estimated future benefits that the
employees have earned in return for their service in the current and prior periods, less fair value of plan assets and as adjusted for unrecognized actuarial gains or losses and
unrecognized past service cost. The calculation is performed by an independent actuary using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using government bond interest rates considering currently there is no deep market for high quality corporate bonds
that have terms to maturity approximating the terms of the related liability.
Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions, when exceeding the greater of 10 of present value defined benefit obligation
or 10 of fair value of plan assets, are charged or credited to the consolidated statements of income over the average remaining service lives of the relevant employees. Prior service cost
is recognized immediately if vested or amortized over the vesting period.
For defined contribution plans, the regular contributions constitute net periodic costs for the year in which they are due and as such are included in staff costs.
ii. Long Service Awards “LSA” and Long Service Leave “LSL” Employees are entitled to receive certain cash awards or certain number of days leave
benefits based on length of service requirements. LSA are either paid at the time the employees reach certain anniversary dates during employment, or at the time of termination.
LSL is either certain number of days leave benefit or cash, subject to approval by management, provided to employee who has met the requisite number of years of service
and with a certain minimum age. Actuarial gains or losses arising from experience and changes in actuarial assumptions are
charged immediately to the consolidated statements of income. The obligation with respect to LSA and LSL is calculated by an independent actuary using the
projected unit credit method.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
29
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued r. Employee benefits continued
