PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
25
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued g. Trade and other receivables
Trade and other receivables are recognized initially at fair value and subsequently measured at amortized cost, less provision for impairment. This provision for impairment is made based on
management
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
26
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued k. Intangible assets
Intangible assets mainly consist of software and license. Intangible assets are recognized if it is highly probable that the expected future economic benefits that are attributable to each asset will
flow to the Group, and the cost of the asset can be reliably measured. Intangible assets are stated at cost less accumulated amortization and impairment losses, if any.
Intangible assets are amortized over their estimated useful lives. The Group estimates the recoverable value of its intangible assets. When the carrying amount of an intangible asset
exceeds its estimated recoverable amount, the asset is written down to its estimated recoverable amount.
Intangible assets are amortized using the straight-line method, based on the estimated useful lives of the intangible assets as follows:
Years
Software 3-6
License 3-20
Other intangible assets 1-30
Intangible assets are derecognized on disposal, or when no further economic benefits are expected, either from further use or from disposal. The difference between the carrying amount
and the net proceeds received from disposal is recognized in the consolidated statement of profit or loss and other comprehensive income.
l. Property and equipment
Property and equipment are stated at cost less accumulated depreciation and impairment losses. The cost of an item of property and equipment includes: a purchase price, b any costs directly
attributable to bringing the asset to its location and condition, and c the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Each part
of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.
Property and equipment, except land rights, are depreciated using the straight-line method based on the estimated useful lives of the assets as follows:
Years
Buildings 15-40
Leasehold improvements 2-15
Switching equipment 3-15
Telegraph, telex and data communication equipment 5-15
Transmission installation and equipment 3-25
Satellite, earth station and equipment 3-20
Cable network 5-25
Power supply 3-20
Data processing equipment 3-20
Other telecommunications peripherals 5
Office equipment 2-5
Vehicles Asset Customer Premises Equipment
