PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
39
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued ab. Critical accounting estimates and judgments continued
iv. Income taxes
Significant judgement is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The
Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the year in which such determination is made. Details of
the nature and carrying amount of income tax are disclosed in Note 31.
v. Impairment of non-financial assets
The Group annually assesses whether goodwill is impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset or a cash-generating unit is determined based on the higher of its fair value less costs to
sell and its value in use, calculated on the basis of management’s assumptions and estimations.
The Group determines the estimated recoverable amount based on the future cash flows projections from the continuing use of the asset and the net cash flows to be received for the
disposal of an asset at the end of its useful life. Those projections are estimated for the asset in its current condition and not included future cash flows that are expected to arise from a
future restructuring to which the Group is not yet committed and improving or enhancing the asset’s performance.
The assessment of recoverable amount is sensitive to the management’s judgments in establishing forecasts of future cash flows. These judgments are applied based on our
understanding of historical and current information, and expectations of the Group’s future plan and performance. Further details are presented in Note 11.
3. BUSINESS COMBINATIONS a. Acquisitions
Acquisition of PT German Center Indonesia On January 17, 2013, Sigma signed a sales and purchase of shares agreement and transfer of
debt with Landeskreditbank Baden-Wurttemberg-Forderbank “L-Bank” and Step Stuttgarter Engineering Park Gmbh “STEP” as the shareholders of PT German Centre Indonesia “GCI”.
Further, on April 30, 2013, Sigma has bought all shares owned by L-Bank and STEP in GCI. Through this acquisition, Sigma enlarged its data center capacity that can be offered to its
customers.
Acquisition of Patrakom On September 25, 2013, based on notarial deed No. 22 of Ashoya Ratam, S.H.,M.Kn, the
Company entered into a Sales and Purchase Agreement SPA with PT ELNUSA Tbk to acquire 40 ownership in Patrakom for Rp45.6 billion. As a result, the Company’s ownership in Patrakom
increase from 40 to 80 Note 10.
Further, on November 29, 2013, based on notarial deed No. 54 of Ashoya Ratam, S.H., M.Kn., dated November 29, 2013 the Company has signed a SPA with PT Tanjung Mustika Tbk to
acquire the remaining of 20 ownership in Patrakom for Rp24.8 billion.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
40
3. BUSINESS COMBINATIONS continued a. Acquisitions continued
Acquisition of Patrakom continued Patrakom is a satellite-based closed fixed telecommunications network operator and provider of
communications solutions and network with a permit as Operator of Micro Earth Stations Communications Systems “SKSBM” in partnership with manufacturers of telecommunications
equipment to serve various companies. Through this acquisition, the Company can integrate Patrakom’s business activities in accordance with the Company’s business development plan.
The fair values of the assets acquired and liability transferred at the acquisition dates are as follows:
GCI Patrakom
Total Cash and equivalents
3 39
42 Other current assets
18 122
140 Property and equipment Note 11
225 171
396 Current liabilities
15 171
186 Non-current liabilities
16 45
61 Fair value of the identifiable net
assets acquired 215
116 331
Bargain purchase 42
- 42
Fair value of previously held equity interests -
46 46
Fair value of the consideration transferred 173
70 243
The excess of fair value of the identifiable net assets acquired over the fair value of the consideration transferred amounting Rp42 billion, was recorded as other income in the
consolidated statement of comprehensive income of the year 2013. Cost related to the acquisition amounting to Rp4.3 billion was incurred in 2013.
Since the acquisition dates, GCI and Patrakom have generated operating revenue amounting to Rp374 billion.
Acquisition of CCA On June 14, 2014, the shareholders of CCA and Telkom Australia entered into an agreement to
purchase 75 ownership in CCA amounting for AU10,843,000 or equivalent to Rp116 billion. The acquisition was completed on September 25, 2014.
CCA is a private company based in Surry Hills, Sydney and established in 2002. This company provides comprehensive and integrated BPO solutions with other services for a complete end-to-
end solution.
