PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
20
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued d. Acquisitions of subsidiaries continued
In July 2004, the Indonesian Financial Accounting Standard Board “Dewan Standar Akuntansi Keuangan di Indonesia” or “DSAK” issued PSAK 38 Revised 2004, “Accounting for
Restructuring Transactions between Entities under Common Control”, “PSAK 38R”. Under PSAK 38R, the acquisition transaction with entities under common control is accounted for using
book value, in a manner similar to that in pooling of interests accounting carryover basis. The difference between the consideration paid or received and the related historical carrying amount,
after considering income tax effects, is recognized directly in equity and reported as “Difference in value arising from restructuring transactions and other transactions between entities under
common control” in the stockholders’ equity section.
The balance of “Difference in value arising from restructuring transactions and other transactions between entities under common control” is charged to consolidated statement of income when
the common control relationship has ceased.
The difference between the consideration paid and the carrying amount of the minority interest debited is recognized directly in equity and reported as “Difference due to acquisition of minority
interest in subsidiary” Note 1d.b.
e. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and in banks and all unrestricted time deposits with maturities of not more than three months from the date of placement.
f. Investments
i. Time deposits
Time deposits with maturities of more than three months but not more than one year, are presented as temporary investments.
ii. Investments in securities Investments in available-for-sale securities are stated at fair value. Unrealized holding gains
or losses on available-for-sale securities are excluded from income of the current period and are reported as a separate component in the stockholders’ equity section until realized.
Realized gains or losses from the sale of available-for-sale securities are recognized in the consolidated statements of income, and are determined on a specific-identification basis. A
decline in the fair value of any available-for-sale securities below cost that is deemed to be other-than-temporary is charged to the consolidated statements of income.
iii. Investments in associated companies Investments in companies where the Company has 20 to 50 of the voting rights, and
through which the Company exerts significant influence, but not control, over the financial and operating policies are accounted for using the equity method. Under this method, the
Company recognizes the Companys proportionate share in the income or loss of the associated company from the date that significant influence commences until the date that
significant influence ceases. When the Company’s share of loss exceeds the carrying amount of the associated company, the carrying amount is reduced to nil and recognition of further
losses is discontinued except to the extent that the Company has guaranteed obligations of the associated company or committed to provide further financial support to the associated
company.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
21
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued f. Investments continued
