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
22
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued c. Transactions with related parties continued
The Company and its subsidiaries have transactions with related parties. The definition of related parties used is in accordance with PSAK 7 Revised 2010, “Related Party Disclosures”. A
related party is a person or entity that is related to the entity that is preparing its financial statements “reporting entity”.
d. Acquisitions of subsidiaries
Since January 1, 2011, the Company and its subsidiaries have adopted PSAK 22 Revised 2010, “Business Combinations”, which became effective for financial statement periods
beginning on or after January 1, 2011 and is applied prospectively. The acquisition of a subsidiary from a third party is accounted for using the purchase method of
accounting. The cost of an acquisition is allocated to the identifiable assets and liabilities recognized using as reference, their fair values at the date of the transaction. The excess of the
acquisition cost over the Companys interest in the fair value of identifiable assets acquired and liabilities assumed is recorded as goodwill. Acquisition-related costs are recognized in the periods
in which the costs are incurred and the services are received. The Company continually assesses whether there is any indication of impairment. If any
indication of impairment exists, the recoverable amount of intangible assets and goodwill is estimated based on the expected future cash flows which are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Goodwill aroused from business combination which acquisition
date prior January 1, 2011 was stopped amortized since the period beginning on or after January 1, 2011.
The acquisition of entities under common control is accounted for using book value, in a manner similar to that of pooling of interests accounting carryover basis. Any 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 the consolidated statement of
comprehensive income when the common control relationship has ceased.
The difference between the consideration paid and the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets debited is recognized directly in equity and reported
as “Difference due to acquisition of non-controlling interest in subsidiaries”. 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.
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
23
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
