PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
iii. Share-based payments The Company operates an equity-settled, share-based compensation plan. The fair value of
the employees’ services rendered which are compensated with the Company’s shares is recognized as an expense in the consolidated statements of profit or loss and other
comprehensive income and credited to additional paid-in capital at the grant date. iv. Early retirement benefits
Early retirement benefits are accrued at the time the Company and subsidiaries 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 A commitment to a termination arises when, and only when a detailed formal plan for the early retirement cannot be withdrawn.
t. Income tax
Current and deferred income taxesare recognized as income or an expense and included in the consolidated statements of profit or loss and other comprehensive income, except to the extent
that the tax arises from a transaction or event which is recognized directly in equity, in which case, the tax is recognized directly in equity.
Current tax assets and liabilities are measured at the amounts expected to be recovered or paid using the tax rates and tax laws that have been enacted at each reporting date. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Where appropriate, management establishes provisions
based on the amounts expected to be paid to the tax authorities. The Group recognizes deferred tax assets and liabilities for temporary differences between the
financial and tax bases of assets and liabilities at each reporting date. The Group also recognizes deferred tax assets resulting from the recognition of future tax benefits, such as the benefit of tax
losses carried forward to the extent their future realization is probable. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates and tax laws at each
reporting date which are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reducedto the extent that it is no longer probable that sufficient taxable income will be available to
allow the benefit of part or all of that deferred tax asset to be utilized. Deferred tax assets and liabilities are offset in the consolidated statements of financial position,
except if these are for different legal entities, in the same manner the current tax assets and liabilities are presented.
Amendment to taxation obligation is recorded when an assessment letter “Surat Ketetapan Pajak” or “SKP” is received or, if appealed against, when the results of the appeal are
determined. The additional taxes and penalty imposed through an SKP are recognized in the current yearprofit or loss, unless objectionappeal is taken. The additional taxes and penalty
imposed through the SKP are deferred as long as they meet the asset recognition criteria. Indonesian tax regulation set up several type that subject to final tax. Final tax which charged to
gross value of transaction remains subject to the transaction even though the subject are losses. Refer to PSAK No. 46 revised, final tax is not required in scope of PSAK No. 46.
Final income tax on construction services and lease is presented as part of “Other Expenses”.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments
