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
31
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued p. Revenue and expense recognition continued
ii. Fixed line telephone revenues Revenues from fixed line installations are deferred including incremental costs and
recognized as income over the expected term of the customer relationships. Revenues from usage charges are recognized as customers incur the charges. Monthly subscription charges
are recognized as revenues when incurred by subscribers.
iii. Cellular and fixed wireless telephone revenues Revenues from postpaid service, which consist of usage and monthly charges, are
recognized as follows: •
Connection fees for service connection are deferred including incremental costs and recognized as income over the expected term of the customer relationships.
• Airtime and charges for value added services are recognized based on usage by
subscribers. •
Monthly subscription charges are recognized as revenues when incurred by subscribers. Revenues from prepaid card subscribers, which consist of the sale of starter packs
also known as SIM cards in the case of cellular and RUIM in the case of fixed wireless telephone and start-up load vouchers and pulse reload vouchers, are recognized as follows:
• Sale of SIM and RUIM cards are recognized as revenue upon delivery of the starter
packs to distributors, dealers or directly to customers. •
Sale of pulse reload vouchers either bundled in starter packs or sold as separate items are recognized initially as unearned income and recognized proportionately as usage
revenue based on duration and total of successful calls made and the value added services used by the subscribers or the expiration of the unused stored value of the
voucher.
• Unutilized promotional credits are netted against unearned income.
Revenues under Universal Service Obligation “USO“ arrangement are recognized when telecommunication access is ready and the services are rendered.
iv. Interconnection revenues The revenues from network interconnection with other domestic and international
telecommunications carriers are recognized as earned in accordance with contractual agreements. Interconnection revenues consist of revenues derives from other operator’s
subscriber call to the Company and its subsidiary operator’s subscribers incoming and calls between subscribers of other operators through the Company and its subsidiary’s network
transit.
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
32
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
p. Revenue and expense recognition continued
v. Data, internet and information technology services revenues Revenues from data communication and internet are recognized based on usage
.
Revenues from sales, installation and implementation of computer software and hardware, computer data network installation service and installation are recognized when the goods
rendered to customers or the installation take place.
Revenue from computer software development service is recognized using the percentage of completion method.
vi. Revenues from network Revenues from network consist of revenues from leased lines and satellite transponder
leases which is recognized over the period in which the services are rendered. vii. Other telecommunications services revenues
Revenues from other telecommunications services consist of RSA and sales of other telecommunication services or goods.
The RSA are recorded 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. 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. Revenues from sales of other telecommunication services or goods are recognized upon
completion of services and or delivery of goods to customers.
viii. Expenses Expenses are recognized on an accruals basis.
q. Employee benefits
i. Pension and post-retirement health care benefit plans
The net obligations in respect of the defined pension benefit and post-retirement health care benefit plans are calculated at the present value of estimated future benefits that the
employees have earned in return for their service in the current and prior periods, less the fair value of plan assets and as adjusted for unrecognized actuarial gains or losses and
unrecognized past service cost. The calculation is performed by an independent actuary using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using government bond interest rates considering currently there is no deep market for high quality corporate bonds
that have terms to maturity approximating the terms of the related liability.
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
33
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued q. Employee benefits continued
i. Pension and post-retirement health care benefit plans continued
Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions, when exceeding the greater of 10 of present value defined benefit obligation
or 10 of fair value of plan assets, are charged or credited to the consolidated statements of comprehensive income over the average remaining service lives of the relevant employees.
Prior service cost is recognized immediately if vested or amortized over the vesting period.
For defined contribution plans, the regular contributions constitute net periodic costs for the year in which they are due and as such are included in staff costs.
ii. Long Service Awards “LSA” and Long Service Leave “LSL” Employees of subsidiary are entitled to receive certain cash awards or certain numbers of
days leave benefits based on length of service requirements. LSA are either paid at the time the employees reach certain anniversary dates during employment, or at the time of
termination. LSL is either a certain number of days leave benefit or cash, subject to approval by management, provided to employee who has met the requisite number of years of service
and with a certain minimum age.
Actuarial gains or losses arising from experience and changes in actuarial assumptions are charged immediately to the consolidated statements of comprehensive income.
The obligation with respect to LSA and LSL is calculated by an independent actuary using the projected unit credit method.
iii. Early retirement benefits Early retirement benefits are accrued at the time the Company makes a commitment to
provide early retirement benefits as a result of an offer made in order to encourage voluntary redundancy. A commitment to a termination arises when, and only when a detailed formal
plan for the early retirement cannot be withdrawn.
iv. Pre-retirement benefits Employees of the Company are entitled to a benefit during a pre-retirement period in which
they are inactive for 6 months prior to their normal retirement age of 56 years. During the pre- retirement period, the employees still receive benefits provided to active employees, which
include, but are not limited to regular salary, health care, annual leave, bonus and other benefits. Benefits provided to employees which enter pre-retirement period are calculated by
an independent actuary using the projected unit credit method.
v. Other post-retirement benefits Employees are entitled to home leave passage benefits and final housing facility benefits to
their retirement age of 56 years. Those benefits are calculated by an independent actuary using the projected unit credit method.
Gains or losses on curtailment are recognized when there is a commitment to make a material reduction in the number of employees covered by a plan or when there is an amendment of a
defined benefit plan terms such as that a material element of future services to be provided by current employees will no longer qualify for benefits, or will qualify only for reduced benefits.
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
34
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued q. Employee benefits continued
