PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
15
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Company and subsidiaries collectively referred to as “the Group” have been prepared in accordance with Financial Accounting Standards Standar
Akuntansi Keuangan” or “SAK including Indonesian Statement of Financial Accounting Standards Pernyataan Standar Akuntansi Keuangan or “PSAK” and interpretation of Financial Accounting
Standards Interpretasi Standar Akuntansi Keuangan or “ISAK” in Indonesia published by the Financial Accounting Standards Board of Indonesian Institute of Accountant and Regulation No.
VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency “Bapepam-LK” regarding the Presentation and Disclosure of Financial Statements of Issuers or Public Companies,
enclosed in the decision letter KEP-347BL2012.
a. Basis of preparation of financial statements
The consolidated financial statements, except for the consolidated statements of cash flows, are prepared on the accrual basis. The measurement basis used is historical cost, except for certain
accounts which are measured using the basis mentioned in the relevant notes herein. The consolidated statements of cash flows are prepared using the direct method and present the
changes in cash and cash equivalents from operating, investing and financing activities. Figures in the consolidated financial statements are presented and rounded to billions of
Indonesian rupiah “Rp”, unless otherwise stated. Accounting Standards Issued but not yet Effective
Effective January 1, 2018: • Amendments to PSAK 2: Statement of Cash Flows on Disclosure Initiative.
These amendments require the entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes.
• Amendments to PSAK 46: Income Taxes on Recognition of Deferred Tax Assets for Unrealised Losses.
These amendments: - Add illustrative examples to clarify that the deductible temporary differences arise when
the carrying amount of debt instruments measured at fair value and the fair value is less than the taxable base, regardless of whether the entity expects to recover the carrying
amount of a debt instrument by sale or by use, for example by holding it and collecting contractual cash flows, or a combination of both.
- Clarify that in order to assess whether taxable profits will be available against which it can utilise a deductible temporary difference, the assessment of that deductible temporary
difference carried out in accordance with tax law. - Clarify that tax reduction from the reversal of deferred tax assets is excluded from the
estimation of future taxable profit. The entity compares the deductible temporary differences with future taxable profit that excludes tax deductions resulting from the
reversal of those deductible temporary differences to assess whether the entity has sufficient future taxable profit.
- The estimate of probable future taxable profit may include the recovery of some of an entity’s assets for more than their carrying amount if there is sufficient evidence that it is
probable that the entity will achieve this. The following new or amended standards, that will be effective on January 1, 2018, are
considered to be not applicable to the Group’s consolidated financial statements: • PSAK 69: Agriculture.
• Amendments to PSAK 16: Agriculture: Bearer Plants.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
16
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
