Property, plant and equipment under finance leases

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 32 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued p. Revenue and expense recognition continued i. Implementation of PPSAK 1 “Withdrawal of PSAK 35 Accounting for Telecommunication Services” continued presentation of the interconnection revenues from a “net” to a “gross” basis; reclassification of outgoing calls to other operators from interconnection revenues to telephone revenues; deferral of the installation and connection revenues including incremental costs and recognized as income over the expected term of the customer relationships Notes 2p.ii and 2p.iii; and recognition of Revenue-Sharing Arrangements “RSA” in a manner similar to capital leases where the property, plant and equipment and obligation under RSA are reflected on the consolidated statement of financial position as “Property, plant and equipment” and “RSA liabilities under capital lease”, respectively. All revenues generated from the RSA are recorded as a component of operating revenues, while a portion of the investors’ share of the revenues from the RSA is recorded as interest expense with the balance treated as a reduction of the obligation under RSA. As a result of the changes, the comparative figures in the consolidated financial statements have been restated as follow: Before After restatement Restatement restatement CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010: Operating Revenues 52,122,352 813,455 51,308,897 Operating Expenses 34,928,218 813,455 34,114,763 Other Expenses 715,298 35,980 679,318 Income Before Tax 16,478,836 35,980 16,514,816 Tax Expense 4,322,212 8,995 4,331,207 Income For The Period 12,156,624 26,985 12,183,609 Basic Earnings Per Share Net income per share 454.17 1.38 455.55 Net income per ADS 40 Series B shares per ADS 18,166.80 55.20 18,222.00