Business combinations continued FS TLKM Triwulan II 2014 English

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 24 Intangible assets are recognized if it is probable that the expected future economic benefits that are attributable to each asset will flow to the Company or subsidiaries, and the cost of the asset can be reliably measured. Intangible assets are stated at cost less accumulated amortization and impairment, if any. Intangible assets are amortized over their useful lives. The Company and subsidiaries estimate the recoverable value of their intangible assets. When the carrying amount of an asset exceeds its estimated recoverable amount, the asset is written down to its estimated recoverable amount. Intangible assets are amortized using the straight-line method, based on the estimated useful lives of the assets as follows: Years Software 3-20 License 3-20 Other intangible assets 1-30 Intangible assets are derecognized when no further economic benefits are expected, either from further use or from disposal. The difference between the carrying amount and the net proceeds received from disposal is recognized in the consolidated statement of comprehensive income.

l. Property and equipment - direct acquisitions

Property and equipment directly acquired are stated at costless accumulated depreciation and impairment losses. The cost of an item of property and equipment includes: a purchase price, b any costs directly attributable to bringing the asset to its location and condition and c the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. Property and equipment, except landrights, are depreciated using the straight-line method based on the estimated useful lives of the assets as follows: Years Buildings 15-40 Leasehold improvements 2-15 Switching equipment 3-15 Telegraph, telex and data communication equipment 5-15 Transmission installation and equipment 3-25 Satellite, earth station and equipment 3-20 Cable network 5-25 Power supply 3-20 Data processing equipment 3-20 Other telecommunications peripherals 5 Office equipment 2-5 Vehicles Asset Customer Premise Equipment “CPE” 4-8 10 Other equipment 2-5