PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
31
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued ab. Critical Accounting Estimates and Judgements and Assumptions continued
i. Retirement benefits
The present value of the retirement benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in
determining the net cost income for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of retirement benefit obligations.
The Group determines the appropriate discount rate at the end of each reporting period. This is the interest rate that should be used to determine the present value of estimated future cash
outflows expected to be required to settle the obligations. In determining the appropriate discount rate, the Group considers the interest rates of Government bonds that are denominated
in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related retirement benefit obligations.
If there is an improvement in the ratings of such Government bonds or a decrease in interest rates as a result of improving economic conditions, there could be a material impact on the
discount rate used in determining the post-employment benefits obligations. Other key assumptions for retirement benefit obligations are based in part on current market
conditions. Additional information is disclosed in Notes 30 and 31.
ii. Useful lives of property and equipment
The Group estimate the useful lives of their property and equipment based on expected asset utilization, considering strategic business plans, expected future technological developments
and market behavior. The estimates of useful lives of property and equipment are based on the Group’s collective assessment of industry practice, internal technical evaluation and experience
with similar assets.
The Group reviews its estimates of useful lives at least each financial year end and such estimates are updated if expectations differ from previous estimates due to changes in
ecpectation of physical wear and tear, technical or commercial obsolescence and legal or other limitations on the use of the assets. The amounts of recorded expenses for any year will be
affected by changes in these factors and circumstances. A change in the estimated useful lives of the property and equipment is a change in accounting estimates and is applied prospectively
in profit or loss in the period of the change and future periods.
Details of the nature and carrying amount of property and equipment are disclosed in Note 9.
iii. Provision for impairment of receivables
The Group assesses whether there is objective evidence that trade and other receivables have been impaired at the end of each reporting period. Provision for impairment of receivables is
calculated based on a review of the current status of existing receivables and historical collection experience. Such provisions are adjusted periodically to reflect the actual and
anticipated experience. Details of the nature and carrying amount of provision for impairment of receivables are disclosed in Note 5.
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 27.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
32
3. CASH AND CASH EQUIVALENTS
September 30, 2016 December 31, 2015
Balance Balance
Currency Original
currency in millions
Rupiah equivalent
Original currency
in millions Rupiah
equivalent
Cash on hand Rp
- 45
- 10
Cash in banks
Related parties
PT Bank Mandiri Persero Tbk “Bank Mandiri”
Rp -
1,127 -
672 US
49 642
51 707
JPY 7
1 11
1 EUR
1 11
1 8
HKD 1
1 AUD
PT Bank Negara Indonesia Persero Tbk “BNI”
Rp -
493 -
508 US
4 56
22 299
EUR 5
70 5
72 SGD
PT Bank Rakyat Indonesia Persero Tbk “BRI”
Rp -
84 -
140 US
7 96
11 155
Others Rp
- 11
- 14
US Sub-total
2,591 2,577
Third parties Standard Chartered Bank “SCB”
Rp -
- US
43 561
31 430
SGD 14
130 1
13 The Hongkong and Shanghai Banking
Corporation Ltd. “HSBC” US
14 181
8 110
HKD 2
3 10
18 SGD
- -
1 6
Development Bank of Singapore ”DBS” Rp
- 99
- US
- -
Citibank, N.A. “Citibank” Rp
- 40
- 103
US 3
37 2
26 EUR
1 4
PT Bank Muamalat Indonesia Tbk “Bank Muamalat”
Rp -
3 -
61 US
3 27
373 Others each below Rp75 billion
Rp -
165 -
98 US
6 74
1 15
SGD -
- EUR
AUD 1
13 TWD
9 4
19 8
MYR HKD
MOP Sub-total
1,301 1,278
Total cash in banks 3,892
3,855 Time deposits
Related parties Bank Mandiri
Rp -
4,371 -
2,863 US
6 78
5 69
BRI Rp
- 3,307
- 2,831
US 68
891 201
2,763 BNI
Rp -
2,634 -
3,031 US
59 773
1 9
PT Bank Tabungan Negara Persero Tbk “Bank BTN”
Rp -
3,365 -
885 Sub-total
15,419 12,451