PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2015 and for the Six Months Period Then Ended Unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
55
10. PROPERTY AND EQUIPMENT continued
a. Gain on disposal or sale of property and equipment
June 30, June 30,
2015 2014
Proceeds from sale of property and equipment 177
1 Net book value
2 -
Gain on disposal or sale of property and equipment 175
1
b. Assets impairment As of December 31, 2014, the CGUs that independently generate cash inflows were fixed wireline,
fixed wireless, cellular and others. In 2014, the Group decided to cease its fixed wireless business no later than December 14, 2015.
The Company assessed the recoverable amount to be Rp549 billion as of December 31, 2014 and determined that the assets for fixed wireless CGU were further impaired by Rp805 billion. The
recoverable amount has been determined based on VIU calculation using the most recent cash flows projection approved by management. The cash flows projection included cash inflows from the
continuing use of the assets during the remaining service period and projected net cash flows to be received for the disposal of the assets for fixed wireless CGU at the end of service period. Projected
net cash flows to be received for the disposal of the assets was determined based on cost approach, adjusted for physical, technological and economic obsolescence. Management applied a
pre-tax discount rate of 13.5 derived from the Company
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2015 and for the Six Months Period Then Ended Unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
56
10. PROPERTY AND EQUIPMENT continued
c. Others i
Interest capitalized to property under construction amounted to Rp279 billion and Rp251 billion for the six months period ended June 30, 2015 and for the year ended December
31, 2014, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization ranged from 9.74 to 18.31 and from 10.14 to 18.31 for the six
months period ended June 30, 2015 and for the year ended December 31, 2014, respectively.
ii No foreign exchange loss was capitalized as part of property under construction for the six months period ended June 30, 2015 and for the year ended December 31, 2014.
iii
As of June 30, 2015 and 2014, the Group received the proceeds from the insurance claim on the lost and broken property and equipment, with a total value of Rp68 billion and Rp135
billion, respectively. The proceeds were recorded as part of
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2015 and for the Six Months Period Then Ended Unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
57
10. PROPERTY AND EQUIPMENT continued
