PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
v. Impairment of financial assets continued For available-for-sale financial assets, the Group assesses at each reporting date whether
there is objective evidence that an investment or a group of investments is impaired. When a decline in the fair value of an available-for-sale financial asset has been recognized in other
comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income is recognized in
profit or loss as an impairment loss. The amount of the cumulative loss is the difference between the acquisition cost net of any principal repayment and amortization and current fair
value, less any impairment loss on that financial asset previously recognized. vi. Derecognition of financial instrument
The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or when the Group transfers substantially all the risks and rewards
of ownership of the financial asset. The Group derecognizes a financial liability when the obligation specified in the contract is
discharged or cancelled or has expired.
v. Treasury stock
Reacquired Companyshares of stock are accounted for at their reacquisition cost and classified as “Treasury Stock” and presented as a deduction to equity. The cost of treasury stock
soldtransferred is accounted for using the weighted average method. The portion of treasury stock transferred for employees ownership program is accounted for at its fair value at grant date.
The difference between the cost and the proceeds from the saletransfer value of treasury stock is credited to “Additional Paid-in Capital”.
w. Dividends
Dividend for distribution to the stockholders is recognized as a liability in the consolidated financial statements in the year in which the dividend is approved by the stockholders. The interim dividend
as a liability based on the Board of Directors’ decision supported by the approval from the Board of Commissioners.
x. Basic and diluted earnings per share and earnings per ADS
Basic earnings pershare is computed by dividing profit for the year attributable to owners of the parent company by the weighted average number of shares outstanding during the year. Income
per ADS is computed by multiplying the basic earnings per share by 100, the number of shares represented by each ADS.
The Company does not have potentially dilutive financial investments.
y. Segment information
The Groups segment information is presented based upon identified operating segments. 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 Groups chief operating decision maker i.e., the Directors, to make decisions about resources to be allocated to the segment and assess its performance, and c for which discrete financial
information is available.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued z. Provision
