Reporting Currency GENERAL continued

716 PT Pelabuhan Indonesia II Persero The original consolidated financial statements included herein are in the Indonesian language. PERUSAHAAN PERSEROAN PERSERO PT PELABUHAN INDONESIA II DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2016 dan untuk Tahun yang Berakhir pada Tanggal Tersebut Disajikan dalam Ribuan Rupiah, Kecuali Dinyatakan Lain PERUSAHAAN PERSEROAN PERSERO PT PELABUHAN INDONESIA II AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for The Year then Ended Expressed in Thousands of Rupiah, Unless Otherwise Stated 31

2. IKHTISAR KEBIJAKAN AKUNTANSI PENTING

lanjutan 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued i. Beban Dibayar di Muka i. Prepaid Expenses Beban dibayar di muka dibebankan pada operasi sesuai dengan masa manfaatnya. Prepaid expenses are charged to operations over the periods benefited.

j. Investasi pada Entitas Asosiasi

j. Investment in Associates

Entitas asosiasi adalah seluruh perusahaan dimana Kelompok Usaha memiliki pengaruh signifikan namun bukan pengendali. Investasi pada entitas asosiasi dicatat dengan metode ekuitas dan pada awalnya diakui sebesar harga perolehan. Investasi pada entitas asosiasi tersebut termasuk goodwill yang diidentifikasi ketika akuisisi dikurangi rugi penurunan nilai. Associates entities over which the Group has significant influence but not control. Investment in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group’s investment in associates include goodwill identified on acquisition, net of impairment loss. Bagian Kelompok Usaha atas laba atau rugi entitas asosiasi pasca-akuisisi diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Bagian atas mutasi penghasilan komprehensif lainnya pasca-akuisisi diakui didalam penghasilan komprehensif lainnya. Mutasi penghasilan komprehensif pasca-akuisisi disesuaikan terhadap nilai tercatat investasinya, jika bagian Kelompok Usaha atas kerugian entitas asosiasi sama dengan atau melebihi kepentingannya pada entitas asosiasi, termasuk piutang tanpa agunan. The Group’s share of their associates post acquisition profits or losses is recognized in the consolidated statements of profit or loss and other comprehensive income. Their share of post acquisition movement in other comprehensive income is recognized as other comprehensive income. The cumulative post- acquisition movements are adjusted against the carrying amount of the investment, when the Group’s share of losses in an associate exceeds its interest in the associates, including any unsecured receivable. Kelompok Usaha menghentikan pengakuan bagian kerugiannya, kecuali Kelompok Usaha memiliki kewajiban atau melakukan pembayaran atas nama entitas asosiasi. Keuntungan dan kerugian dilusi yang timbul dari investasi pada entitas asosiasi diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. The Group does not recognize for the losses unless they have incurred obligation or made payments on behalf of the associates. Diluted gains and losses arising in investments in associates are recognized in the consolidated statements of profit or loss and other comprehensive income.