PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010
SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
26
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. KSO continued
MTR are recognized on a monthly basis based on the contracted MTR amount for the current year.
The Companys share of DKSOR is recognized on the basis of the Companys percentage share of the KSO revenues, net of MTR and operational expenses of the KSO Units, as provided in the
KSO agreements.
Under PSAK 39, “Accounting for Joint Operation Schemes”, which supersedes paragraph 14 of PSAK 35, “Accounting for Telecommunications Services Revenue”, the assets built by the
KSO partners under the KSO were recorded in the books of the KSO partners which operate the assets and would be transferred to the Company at the end of the KSO period or upon
termination of the KSO agreement.
o. Deferred charges for land rights
Costs incurred to process and extend land rights are deferred and amortized using the straight-line method over the term of the land rights.
p. Foreign currency translation
The functional currency of the Company and its subsidiaries is the Indonesian Rupiah and the accounting records of the Company and its subsidiaries are maintained in Indonesian Rupiah.
Transactions in foreign currencies are translated into Indonesian Rupiah at the rates of exchange prevailing at transaction date. At the consolidated balance sheet date, monetary assets and
monetary liabilities balances denominated in foreign currencies are translated into Indonesian Rupiah based on the buy and sell rates quoted by Reuters prevailing at the consolidated balance
sheet date as follows:
The Company and its subsidiaries 2009
2010 Buy
Sell Buy
Sell United States Dollars “US” 1
10,200 10,215
9,060 9,070
Euro1 14,375
14,399 11,064
11,079 Yen1
106.86 107.03
102.14 102.29
The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged to the consolidated statement of income of the current year, except for foreign exchange
differences incurred on borrowings during the construction of qualifying assets which are capitalized to the extent that the borrowings can be attributed to the construction of those
qualifying assets Note 2k.
q. Revenue and expense recognition
i. Fixed line telephone revenues
Revenues from fixed line installations are recognized at the time the installations are placed in service and ready for use. Revenues from usage charges are recognized as customers
incur the charges. Monthly subscription charges are recognized as revenues when incurred by subscribers.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010
SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
27
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued q. Revenue and expense recognition continued
ii. Cellular and fixed wireless telephone revenues Revenues from postpaid service, which consist of connection fee as well as usage and
monthly charges, are recognized as follows: Connection fees for service connection are recognized as revenues at the time the
connection occurs. Airtime and charges for value added services are recognized based on usage by
subscribers.
Monthly subscription charges are recognized as revenues when incurred by subscribers.
Revenues from prepaid card subscribers, which consist of the sale of starter packs also known as SIM cards in the case of cellular and RUIM in the case of fixed wireless
telephone and start-up load vouchers and pulse reload vouchers, are recognized as follows:
Sale of SIM and RUIM cards are recognized as revenue upon delivery of the starter packs to distributors, dealers or directly to customers.
Sale of pulse reload vouchers either bundled in starter packs or sold as separate items are recognized initially as unearned income and recognized proportionately as usage
revenue based on duration and total of successful calls made and the value added services used by the subscribers or the expiration of the unused stored value of the
voucher.
Unutilized promotional credits are netted against unearned income. Revenues under Universal Service Obligation “USO“ arrangement are recognized when
telecommunication access is ready and the services are rendered. iii. Interconnection revenues
With abolition of the rules of interconnection revenue recognition in PSAK 35 notes 2q.viii then revenues from network interconnection with other domestic and international
telecommunications carriers are recognized as earned in accordance with contractual agreements. Interconnection revenues consist of revenues derives from other operator’s
subscriber call to the Company operator’s customer incoming and calls between subscriber of other operators through the Company’s network transit.
iv. Data, internet and information technology services revenues Revenues from installations set-up of internet, data communication and e-Business are
recognized upon the completion of installations. Revenues from data communication and internet are recognized based on usage
.
Revenues from sales, installation and implementation of computer software and hardware, computer data network installation service and installation are recognized when the goods
rendered to customers or the installation take place.
Revenue from computer software development service is recognized using the percentage of completion method.
