PROPERTY AND EQUIPMENT continued
9. PROPERTY AND EQUIPMENT continued
c. Others i Loan interest capitalized to assets under construction amounted to Rp323 billion and Rp279 billion for the six month period ended June 30, 2016 and 2015, respectively. Rates capitalization that is used to determine the amount of borrowing costs eligible for capitalization are ranged between 3.94 - 11.00 and 9.74 - 18.31 for the six month period ended June 30, 2016 and 2015, respectively. ii No foreign exchange loss was capitalized as part of property under construction for the six months period ended June 30, 2016 and for the year ended December 31, 2015. iii As of June 30, 2016 and 2015, the Group received proceeds from the insurance claim on the lost and broken property and equipment, with a total value of Rp25 billion and Rp68 billion, respectively and recorded as part of “Other Income” in the consolidated statement of profit or loss and other comprehensive income. As of June 30 2016 dan 2015, the net carrying value of those assets of Rp21 billion and Rp13 billion, respectively, were charged to the consolidated statement of profit or loss and other comprehensive income. iv In 2016, Telkomsel decided to replace certain equipment units with net carrying amount of Rp90 billion, as part of its modernization program. Accordingly, Telkomsel changed the estimated useful lives of such equipment. The effect of the change is an additional depreciation expense amounting to Rp85 billion for the six months period ended June 30, 2016. In 2015, Telkomsel decided to replace certain equipment with a net carrying value amounting to Rp1,967 billion, as part of a modernization program. Therefore, Telkomsel accelerated the depreciation of such equipment. The impact to depreciation expense for the six month period ended June 30, 2016 amounted to Rp215 billion. The impact of the change in the estimated useful lives of the towers in future periods is an increase in the profit before income tax as follows: Years Amount 2016 6 months 59 2017 30 In 2014, the useful life of buildings and transmission respectively Telkomsel changed from 20 years to 40 years and from 10 years to 15 and 20 years to reflect the economic life of the building and the transmission at this time. Impact of reduction in depreciation expense for the year ended June 30, 2016 amounted to Rp122 billion. Impact of changes in the estimated useful life of the building and its transmission in the coming period is to increase profit before tax as follows: Years Amount 2016 6 months 122 2017 198 2018 135 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 479. PROPERTY AND EQUIPMENT continued
Parts
» GENERAL a. Establishment and general information
» GENERAL continued a. Establishment and general information continued
» GENERAL continued b. FS English Q2 2016 FINAL
» Public offering of securities of the Company
» GENERAL continued c. Public offering of securities of the Company continued
» GENERAL continued FS English Q2 2016 FINAL
» GENERAL continued d. Subsidiaries continued
» Authorization for the issuance of the consolidated financial statements
» Principles of consolidation SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Transactions with related parties
» Prepaid expenses SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued h. Inventories
» Intangible assets SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued h. Inventories
» Leases SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Borrowings SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. Deferred charges - land rights
» Revenue and expense recognition
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» Income tax SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Dividends SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Basic earnings per share and earnings per ADS
» Provision SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» CASH AND CASH EQUIVALENTS continued
» OTHER CURRENT FINANCIAL ASSETS
» TRADE AND OTHER RECEIVABLES continued
» INVENTORIES FS English Q2 2016 FINAL
» ADVANCES AND PREPAID EXPENSES June 30, LONG-TERM INVESTMENTS
» LONG-TERM INVESTMENTS continued FS English Q2 2016 FINAL
» PROPERTY AND EQUIPMENT FS English Q2 2016 FINAL
» PROPERTY AND EQUIPMENT continued
» ADVANCES AND OTHER NON-CURRENT ASSETS
» INTANGIBLE ASSETS continued FS English Q2 2016 FINAL
» ACCRUED EXPENSES June 30, FS English Q2 2016 FINAL
» UNEARNED INCOME June 30, FS English Q2 2016 FINAL
» SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS continued
» LONG-TERM BORROWINGS continued FS English Q2 2016 FINAL
» LONG-TERM BORROWINGS continued LONG-TERM BORROWINGS continued
» NON-CONTROLLING INTERESTS June, 30 2016 FS English Q2 2016 FINAL
» NON-CONTROLLING INTERESTS continued FS English Q2 2016 FINAL
» CAPITAL STOCK continued FS English Q2 2016 FINAL
» ADDITIONAL PAID-IN CAPITAL June 30,
» 2,542 ADDITIONAL PAID-IN CAPITAL continued
» TREASURY STOCK continued OTHER EQUITY RESERVES June 30,
» REVENUES 2016 FS English Q2 2016 FINAL
» OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES
» GENERAL AND ADMINISTRATIVE EXPENSES TAXATION TAXATION continued
» TAXATION continued FS English Q2 2016 FINAL
» TAXATION continued TAXATION continued
» CASH DIVIDENDS AND GENERAL RESERVE
» Pension benefit costs PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs continued
» Obligation under the Labor Law provisions
» Sensitivity Analysis PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued e.
» 3.292 2016 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties
» 1,968 2016 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 399 2016 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 675 2016 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 148 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Cash and cash equivalents Note 3 13,956
» 15,028 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» b. Other current financial assets Note 4
» 1,104 Trade receivables - net Note 5 1,158
» d. Advances and prepaid expenses Note 7
» Advances and other non-current assets Note 10
» 2,075 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 386 g. Accrued expenses Note 13
» h. Advances from customers and suppliers
» 97 Short-term bank loans Note 15
» Two-step loans Note 16a Long-term bank loans - net Note 16c
» 10,789 Significant agreements with related parties
» Key management personnel remuneration
» OPERATING SEGMENT continued FS English Q2 2016 FINAL
» Fixed line telephone tariffs
» Mobile cellular telephone tariffs
» Network lease tariffs TELECOMMUNICATIONS SERVICE TARIFFS continued c. Interconnection tariffs
» SIGNIFICANT COMMITMENTS AND AGREEMENTS a. Capital expenditures
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued a. Capital expenditures continued
» Others SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
» CONTINGENCIES FS English Q2 2016 FINAL
» CONTINGENCIES continued ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
» ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued FINANCIAL RISK MANAGEMENT
» FINANCIAL RISK MANAGEMENT continued
Show more