PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND
THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
36
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Financial instruments continued
ii. Financial liabilties The Company and its subsidiaries classify their financial liabilities as i financial liabilities at
fair value through profit or loss or ii financial liabilities measured at amortized cost. a. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are financial liabilities classified as held for trading. A financial liability is classified as held for trading if it is acquired
principally for the purpose of selling or repurchasing it in the near term and for which there is evidence of a recent actual pattern of short term profit taking.
No financial liabilities were categorized as held for trading as of March 31, 2010 and 2011.
b. Financial liabilities measured at amortized cost Financial liabilities that are not classified as at fair value through profit and loss fall into
this category and are measured at amortized cost. Financial liabilities measured at amortized cost are among other things, trade payables, other payables, accrued
expenses, loans, bonds and notes.
t. Treasury Stock
Reacquired Company’s stock is accounted for at its reacquisition cost and classified as “Treasury Stock” and presented as a deduction to stockholders’ equity. The cost of treasury stock sold is
accounted for using the weighted average method. The difference resulting from the cost and the proceeds from the sale of treasury stock is credited to “Paid-in Capital”.
u. Dividends
Dividend distribution to the Company’s stockholders is recognized as liability in the Company’s consolidated financial statements in the period in which the dividends are approved by the
Company’s stockholders. For interim dividends, the Company recognized them as liability based on the Board of Director’s decision with the approval from the Board of Commissioners.
v. Earnings per share and earnings per ADS
Basic earnings per share are computed by dividing income for the period attributable to owners of the parent by the weighted average number of shares outstanding during the year. Income per
ADS is computed by multiplying basic earnings per share by 40, the number of shares represented by each ADS.
w. Segment information
Since January 1, 2011, the Company and its subsidiaries have adopted PSAK 5 Revised 2009, “Operating Segments”, which became effective for financial statement periods beginning on or
after January 1, 2011 and is applied prospectively.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND
THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
37
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued w. Segment information continued
The Company and its subsidiaries segment information is presented based upon identified operating segment. An operating segment is a component of an entity: a that engages in
business activities from which it may earn revenues and incur expenses including revenues and expenses relating to transactions with other components of the same entity; b whose operating
results are regularly reviewed by the entitys chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and c for which
discrete financial information is available.
x. Use of estimates
Since January 1, 2011, the Company and its subsidiaries have adopted PSAK 57 Revised 2009, “Provisions, Contingent Liabilities and Contingent Assets”, which became effective for
financial statement periods beginning on or after January 1, 2011 and is applied prospectively.
The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures
of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject
to such estimates and assumptions include the carrying amount of property, plant and equipment and intangible assets, the valuation allowance for receivables and obligations related to employee
benefits. Actual results could differ from those estimates. In determining some estimates,
management utilizes the work of third party specialists as required. In using specialists to assist with models and calculations, management reviews the underlying assumptions and assesses
the corresponding calculations for reasonableness in the context of the circumstances of the Company.
3. TRANSLATION OF RUPIAH INTO UNITED STATES DOLLARS
The consolidated financial statements are stated in Indonesian Rupiah “Rupiah”. The translations of Indonesian Rupiah amounts into U.S. Dollars are included solely for the convenience of the readers
and have been made using the average of the market buy and sell rates of Rp.8,707.50 to US1 as published by Reuters on March 31, 2011. The convenience translations should not be construed as
representations that the Indonesian Rupiah amounts have been, could have been, or could in the future be, converted into United States Dollars at this or any other rate of exchange.
