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PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
Table of Contents
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued v. Treasury
stock
Reacquired Company shares 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 grand 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 earnings per share and earnings per ADS
Basic earnings per share 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 basic earnings per share by 200, 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.
z. Provision
Provisions are recognized when the Group has present obligations legal or constructive arising from past events and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligations and the amount can be measured reliably. Provisions for onerous contracts are recognized when the contract becomes onerous for the lower
of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfill the contract.
aa. Impairment of non-financial assets
The Group assesses, at the end of each reporting period, whether there is an indication that an asset may be impaired. If such indication exists, the recoverable amount is estimated for the
individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the Cash-Generating Unit “CGU” to which the
asset belongs “the asset’s CGU”.
The recoverable amount of an asset either individual asset or CGU is the higher of the asset’s fair value less costs to sell and its value in use “VIU”. Where the carrying amount of the asset
exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing the value in use, the estimated net future cash flows 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.
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PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
Table of Contents
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
