PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
30
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
t. Derivative instruments Derivative transactions are accounted for in accordance with PSAK 55, “Accounting for Derivative
Instruments and Hedging Activities” which requires that all derivative instruments be recognized in the financial statements at fair value. To qualify for hedge accounting, PSAK 55 requires
certain criteria to be met, including formal documentations at the inception of the hedge.
Changes in the fair values of derivative instruments that do not qualify for hedge accounting are recognized in the consolidated statements of income. If a derivative instrument is designated and
qualifies for hedge accounting the assets or liabilities shall be adjusted. The changes in fair values of derivative instruments are recognized in the consolidated statements of income or
consolidated statement of changes in stockholder’s equity depending on the type and effectiveness of hedge transaction.
u. Treasury Stock Reacquired Company’s stock is accounted for at its reacquisition cost and classified as “Treasury
Stock” and presented as deduction in stockholders’ equity. The cost of treasury stock sold is accounted for using the weighted average method. The difference resulting from the cost and the
proceeds from the sale of treasury stock is credited to “Paid-in Capital”.
v. Dividends
Dividend distribution to the Company’s stockholders is recognized as liability in the Company’s consolidated financial statements in the period in which the dividends are approved by the
Company’s stockholders. For interim dividends, the Company recognized it as liability based on the Board of Director’s decision with the approval from the Board of Commissioners.
w. Earnings per share and earnings per ADS Basic earnings per share are computed by dividing net income by the weighted average number
of shares outstanding during the period. Net income per ADS is computed by multiplying basic earnings per share by 40, the number of shares represented by each ADS.
x. Segment information
The Company and its subsidiaries segment information is presented based upon identified business segments. A business segment is a distinguishable unit that provides different products
and services and is managed separately. Business segment information is consistent with operating information routinely reported to the Companys chief operating decision maker.
y. Use of estimates 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.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
31
3. TRANSLATION OF RUPIAH INTO UNITED STATES DOLLARS
