PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. Estimated Liabilities for Employees’ Benefits
The Company recognizes an unfunded employee benefit liabilities in accordance with Labor Law No. 13 year 2003 dated March 25, 2003 “the Law” as accounted for under SFAS
No. 24 Revised 2004, “Employee Benefits”. .
Under SFAS No. 24 Revised 2004, the cost of providing employee benefit under the Law is determined using the Projected Unit Credit method. Actuarial gains and losses are recognized as
income or expense when the net cumulative unrecognized actuarial gains and losses for each individual plan at the end of the previous reporting year exceeded 10 of the present value of the
defined benefit obligation at that date. These gains or losses are recognized on a straight line basis over the expected average remaining working lives of the employees. Further, past service
costs arising from the introduction of a defined benefit plan or changes in the benefit payable of an existing plan are required to be amortized over the period until the benefits concerned become
vested.
o. Revenue and Expense Recognition
Revenue is recognized when the goods are delivered and their risks and rewards have been passed to the customers. Revenue from service warranty is recognized as earned. Revenues from
consignment sales are recognized at the amounts of the sales of consignment goods to customers, while the related costs are recognized at the amounts due to consignors as part of
revenues. Revenue from sales of reload vouchers are recognized at the time cash is received.
Expenses are recognized when incurred accrual basis.
p. Deferred Charges - Borrowing Cost
Significant costs incurred in obtaining long-term financing facility are deferred and presented as part of “Other Non-Current Assets - net - Deferred Charges, net - Syndication Borrowing Costs”
account, which are amortized on a straight-line basis over the term of the related facility. If the Company shall be in default either due to technical default or non-payment of the principal and
interest with the consequences of the loan to become immediately due and demandable the related deferred charges on borrowing cost shall be charged to the consolidated statement of
income for the year.
q. Basic Earnings per Share
Basic earnings per share is computed by dividing net income for the year with the weighted- average number of shares outstanding during the year. The weighted-average numbers of shares
outstanding for the years ended December 31, 2009 and 2008 were 4,157,010,137 shares and 2,252,116,717 shares, respectively Note 18.
r. Segment Information
The Company’s and Subsidiaries’ segment information is presented based on business segments, as the primary segment, and distribution channel segments, as the secondary segment.
Business segments provide products or services that are subject to risks and returns that are different from those of other business segments. Distribution channel segments are distinguishable
components that are engaged in distributing products or services through particular distribution channels that are subject to risks and returns that are different from those of components
distributing products or services through other distribution channel.
