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
37
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued w. Segment information continued
The Company and its subsidiaries segment information is presented based upon identified operating segment. 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 entitys chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and c for which
discrete financial information is available.
x. Use of estimates
Since January 1, 2011, the Company and its subsidiaries have adopted PSAK 57 Revised 2009, “Provisions, Contingent Liabilities and Contingent Assets”, which became effective for
financial statement periods beginning on or after January 1, 2011 and is applied prospectively.
The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures
of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject
to such estimates and assumptions include the carrying amount of property, plant and equipment and intangible assets, the valuation allowance for receivables and obligations related to employee
benefits. Actual results could differ from those estimates. In determining some estimates,
management utilizes the work of third party specialists as required. In using specialists to assist with models and calculations, management reviews the underlying assumptions and assesses
the corresponding calculations for reasonableness in the context of the circumstances of the Company.
3. TRANSLATION OF RUPIAH INTO UNITED STATES DOLLARS
The consolidated financial statements are stated in Indonesian Rupiah “Rupiah”. The translations of Indonesian Rupiah amounts into U.S. Dollars are included solely for the convenience of the readers
and have been made using the average of the market buy and sell rates of Rp.8,707.50 to US1 as published by Reuters on March 31, 2011. The convenience translations should not be construed as
representations that the Indonesian Rupiah amounts have been, could have been, or could in the future be, converted into United States Dollars at this or any other rate of exchange.
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
38
4. ACQUISITIONS OF AD MEDIKA
On January 25, 2010, Metra entered into a CSPA with Ad Medika’s stockholders, Ravi Varma Kanason, Sofian Susantio, Arthur Tahya PT Swadayanusa Kencana Raharja dan Shia Kok Fat,
each of which is a third party, to purchase 75 of Ad Medika’s outstanding shares. Subsequently, on February 25, 2010, Metra entered into SPA with Ad Medika’s stockholders for the share purchase
transaction with acquisition cost amounting to Rp.130,077 million including consultant fee Note 1d.b.
Ad Medika is an electronic health care network company. Ad Medika is the largest health service administration management company in Indonesia. Through the acquisition, the Company began
providing services through Insure Net as an initial National e-Health program. The acquisition of Ad Medika has been accounted for using the purchase method of accounting,
where the purchase price was allocated to the fair value of the acquired assets and assumed liabilities. The allocation of the acquisition cost was as follows:
Rp.
The assets and liabilities arising from the acquisition are as follows: Current assets
26,404 Property, plant and equipments
17,110 Intangible assets
45,591 Current liabilities
22,057 Long-term liabilities
8,143 Deferred tax liabilities
9,919 Non-controling interests
4,145 Fair value of net assets acquired
44,841 Goodwill
85,236
Total purchase consideration 130,077
Less: Cash and cash equivalents in subsidiary acquired
13,574
Cash outflow from acquisition 116,503
Metra acquired control of Ad Medika on February 25, 2010 and the valuation was performed by an independent appraisal using the statement of financial position amount as of February 28, 2010,
being the nearest convenient statement of financial position date. The Company’s consolidated results of operations have included the operating results of Ad Medika since March 1, 2010. The
intangible assets acquired included customer contracts and backlog, non contractual customer relationships, trademarks and tradenames, and a non compete agreement Note 13.
