PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND
THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
24
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
f. Investments continued iii. Investments in associated companies continued
On a continuous basis, but no less frequently than at the end of each year, the Company and its subsidiaries evaluate the carrying amount of their ownership interests in associated
companies for possible impairment according to PSAK 55 Revised 2006, “Financial Instruments: Recognition and Measurement”. Factors considered in assessing whether an
indication of other-than-temporary impairment exists include the achievement of business plan objectives and milestones including cash flow projections and the results of planned
financing activities, the financial condition and prospects of each associated company, the fair value of the ownership interest relative to the carrying amount of the investment, the
period of time the fair value of the ownership interest has been below the carrying amount of the investment and other relevant factors. Impairment to be recognized is measured based
on the amount by which the carrying amount of the investment exceeds the fair value of the investment. Fair value is determined based on quoted market prices if any and projected
discounted cash flows, whichever is lower or other valuation techniques as appropriate according to PSAK 48 Revised 2009, “Impairment of Assets”.
Changes in the value of investments due to changes in the equity of associated companies arising from capital transactions of such associated companies with other parties are
recognized directly in equity and are reported as “Difference due to change of equity in associated companies” in the stockholders’ equity section. Differences previously credited
directly to equity as a result of equity transactions in associated companies are released to the consolidated statements comprehensive of income upon the sale of an interest in the
associate in proportion to percentage of the interests sold.
The functional currency of PT Pasifik Satelit Nusantara “PSN” and PT Citra Sari Makmur “CSM” is the United States Dollars “U.S. Dollars” and the functional currency of Scicom
MSC Berhad “Scicom” is Malaysian Ringgit “MYR”. For the purpose of reporting these investments using the equity method, the assets and liabilities of these companies as of the
statement of financial position date are translated into Indonesian Rupiah using the rates of exchange prevailing at that date, while revenues and expenses are translated into Indonesian
Rupiah at the average rates of exchange for the year. The resulting translation adjustments are reported as part of “Translation adjustment” in the stockholders’ equity section.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND
THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
25
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued