ASSET HELD FOR SALE
11. PROPERTY AND EQUIPMENT continued
a. Gain on disposal or sale of property and equipment 2014 2013 Proceeds from sale of property and equipment 501 466 Net book value 64 36 Gain on disposal or sale of property and equipment 437 430 b. Assets impairment As of December 31 2014 and 2013, the CGUs that independently generate cash inflows were fixed wireline, fixed wireless, cellular and others. As of December 31 2013, there were indications of impairment in the fixed wireless CGU presented as part of personal segment, which were mainly due to increased competition in the fixed wireless market that resulted in lower average tariffs, declining active customers and declining average revenue per user. The Company assessed the recoverable value of the assets in the CGU and determined that assets for the fixed wireless CGU were impaired by Rp596 billion. The recoverable amount has been determined based on value-in-use VIU calculations. This calculation used the most recent cash flows projection approved by management covering five- year period and with cash flows beyond the five-year period extrapolated using perpetuity growth rate. Management’s cash flow projection also incorporates management’s reasonable expectations for developments in macro economic conditions and market expectations for the Indonesian telecommunications industry. Management applied a pre-tax discount rate of 13.5 derived from the Company’s post-tax weighted average cost of capital and benchmarked to externally available data. In 2014, the Group decided to cease its fixed wireless business no later than December 15, 2015. The Company assessed the recoverable amount to be Rp549 billion as of December 31, 2014 and determined that the assets for fixed wireless CGU were further impaired by Rp805 billion. The recoverable amount has been determined based on VIU calculation using the most recent cash flows projection approved by management. The cash flows projection included cash inflows from the continuing use of the assets during the remaining service period and projected net cash flows to be received for the disposal of the assets for fixed wireless CGU at the end of service period. Projected net cash flows to be received for the disposal of the assets was determined based on cost approach, adjusted for physical, technological and economic obsolescence. Management applied a pre-tax discount rate of 13.5 derived from the Company’s post-tax weighted average cost of capital and benchmarked to externally available data. In addition, management also applied technological and economic obsolescence rate of 30 based on the Company’s internal data, as there is a lack of comparable market data because of the nature of the assets. The calculation of VIU calculation is most sensitive to technological and economic obsolescence rate assumption. An increase in technological and economic obsolescence rate to 40 would result in a further impairment of Rp70 billion. Loss on impairment of assets was recognized within “Depreciation and Amortization” in the consolidated statement of comprehensive income.Parts
» GENERAL a. Establishment and general information
» Public offering of securities of the Company
» Subsidiaries GENERAL continued c. Public offering of securities of the Company continued
» GENERAL continued d. Subsidiaries continued
» Basis of preparation of financial statements
» Principles of consolidation SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Transactions with related parties
» Investments in associated companies
» Inventories SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Prepaid expenses SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued h. Inventories continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Leases SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Deferred charges - land rights
» Borrowings SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued o. Trade payables
» Income tax SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» Financial instruments SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued t. Income tax continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Dividends SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Basic earnings per share and earnings per ADS
» Provision SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued y. Segment information
» Retirement benefits SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued y. Segment information
» BUSINESS COMBINATIONS a. Acquisitions
» BUSINESS COMBINATIONS continued a. Acquisitions continued
» Disposal of Indonusa BUSINESS COMBINATIONS continued a. Acquisitions continued
» CASH AND CASH EQUIVALENTS 2014
» CASH AND CASH EQUIVALENTS continued 2014
» OTHER CURRENT FINANCIAL ASSETS 2014
» TRADE RECEIVABLES FS YE Audited 2014 English
» TRADE RECEIVABLES continued FS YE Audited 2014 English
» INVENTORIES 2014 FS YE Audited 2014 English
» ADVANCES AND PREPAID EXPENSES 2014
» LONG-TERM INVESTMENTS FS YE Audited 2014 English
» LONG-TERM INVESTMENTS continued FS YE Audited 2014 English
» PROPERTY AND EQUIPMENT FS YE Audited 2014 English
» PROPERTY AND EQUIPMENT continued
» ADVANCES AND OTHER NON-CURRENT ASSETS continued
» INTANGIBLE ASSETS continued FS YE Audited 2014 English
» TRADE PAYABLES 2014 FS YE Audited 2014 English
» ACCRUED EXPENSES 2014 UNEARNED INCOME
» SHORT-TERM BANK LOANS continued
» CURRENT MATURITIES OF LONG-TERM LIABILITIES
» TWO-STEP LOANS continued FS YE Audited 2014 English
» BONDS AND NOTES FS YE Audited 2014 English
» BONDS AND NOTES continued BANK LOANS
» BANK LOANS continued FS YE Audited 2014 English
» BANK LOANS continued BANK LOANS continued NON-CONTROLLING INTERESTS
» CAPITAL STOCK 2014 FS YE Audited 2014 English
» TREASURY STOCK continued FS YE Audited 2014 English
» REVENUES 2014 FS YE Audited 2014 English
» REVENUES continued FS YE Audited 2014 English
» PERSONNEL EXPENSES FS YE Audited 2014 English
» OPERATIONS, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES 2014
» GENERAL AND ADMINISTRATIVE EXPENSES 2014 TAXATION
» TAXATION continued FS YE Audited 2014 English
» TAXATION continued TAXATION continued
» CASH DIVIDENDS AND GENERAL RESERVE
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS 2014
» Other post-employment benefits provisions
» Obligation under the Labor Law provisions
» Nature of relationships and accountstransactions with related parties
» 6,207 2014 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties
» 4,099 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties
» 602 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 408 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Cash and cash equivalents Note 4 10,464
» 11,736 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» b. Other current financial assets Note 5
» 900 Trade receivables - net Note 6 746
» d. Advances and prepaid expenses Note 8
» 55 Advances and other non-current assets Note 12
» 826 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» h. Advances from customers and suppliers
» 67 Short-term bank loans Note 17
» j. Short-term bank loans Note 17
» Long-term bank loans Note 21
» 7,463 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Significant agreements with related parties
» RELATED PARTY TRANSACTIONS continued
» SEGMENT INFORMATION FS YE Audited 2014 English
» SEGMENT INFORMATION continued FS YE Audited 2014 English
» REVENUE-SHARING ARRANGEMENTS “RSA” FS YE Audited 2014 English
» Fixed line telephone tariffs
» Mobile cellular telephone tariffs
» Capital expenditures continued SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
» Borrowings and other credit facilities
» Borrowings and other credit facilities continued Others
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
» CONTINGENCIES FS YE Audited 2014 English
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