Public offering of securities of the Company

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 16

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of preparation of financial statements

continued Changes to the statement of financial accounting standards and interpretation to statement of financial accounting standards continued • PSAK 1 Revised 2009, “Presentation of Financial Statements” continued The Company and its subsidiaries have elected to present one statement. The consolidated financial statements have been prepared included statement of financial position as at the beginning comparative period without disclosure of information as at the beginning comparative period on the notes to the financial statements. The consolidated financial statements have been prepared under the revised disclosure requirements. • PSAK 22 Revised 2010, “Business Combinations” The revised standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently re-measured through the profit or loss. There is a choice on an acquisition-by- acquisition basis to measure the non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition-related costs should be expensed whilst goodwill is no longer amortized. The Company and its subsidiaries apply this revised standard prospectively to all business combinations from January 1, 2011. As at January 1, 2011, the carrying amount of goodwill arising from prior business combination is at its carrying amount at that date. The entity stops amortizing the goodwill and eliminates any accumulated amortization of that goodwill to its cost. • PSAK 7 Revised 2010, “Related Party Disclosures” The revised standard enhances the guidance of disclosure of related party relationships, transactions and outstanding balances, including commitments. It also makes clear that a member of the key management personnel is a related party, which in turn requires the disclosures of each category of remuneration and compensation of the key management personnel. The Company and its subsidiaries have evaluated its related party relationships and ensured the consolidated financial statements have been prepared under the revised disclosure requirements. The adoption of these new and revised standards and interpretations did not result in substantial changes to the Company and its subsidiaries’ accounting policies and had no material effect on the amounts reported for the current or prior financial periods: • PSAK 2 Revised 2009, “Statement of Cash Flows” • PSAK 3 Revised 2010, “Interim Financial Reporting” • PSAK 4 Revised 2009, “Consolidated and Separate Financial Statements” • PSAK 5 Revised 2009, “Operating Segment” • PSAK 8 Revised 2010, “Events after the Reporting Period” • PSAK 12 Revised 2009, “Interests in Joint Ventures” • PSAK 15 Revised 2009, “Investments in Associates” • PSAK 19 Revised 2010, “Intangible Assets” • PSAK 23 Revised 2010, “Revenue” • PSAK 25 Revised 2009, “Accounting Policies, Changes in Accounting Estimates and Errors”