PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
54
11. PROPERTY AND EQUIPMENT continued
c. Others continued xi continued
Future minimum lease payments for assets under finance lease are as follows:
June 30, December 31,
Year 2014
2013
2014 1,009
1,070 2015
446 885
2016 865
847 2017
834 813
2018 767
754 Thereafter
2,613 2,535
Total minimum lease payments 6,534
6,904 Interest
1,758 1,935
Net present value of minimum lease payments 4,776
4,969 Current maturities Note 18a
607 648
Long-term portion Note 18b 4,169
4,321 12. ADVANCES AND OTHER NON-CURRENT ASSETS
Advances and other non-current assets as of June 30, 2014 and December 31, 2013 consist of:
June 30, December 31,
2014 2013
Advances for purchase of property and equipment 2,037
1,550 Prepaid rental - net of current portion Note 8
1,428 1,403
Frequency license - net of current portion Note 8 557
619 Long-term trade receivables - net of current portion Note 6
463 558
Deferred charges 460
529 Claim for tax refund - net of current portion Note 31
457 499
Security deposits 92
73 Restricted cash
2 54
Others each below Rp10 billion 1
9
Total 5,497
5,294
Prepaid rental covers rent of leased line and telecommunication equipment and land and building under lease agreements of the Company and subsidiaries with rental periods ranging from 1 to 39
years.
Long-term trade receivables are measured at amortized cost using the effective interest ratemethod payable in installments over 4 years, and arose from providing telecommunication access and
services in rural areas USO Note 41c.v. As of June 30, 2014 and December 31, 2013, deferred charges represent deferred Revenue-Sharing
Arrangement “RSA” charges and deferred Indefeasible Right of Use “IRU” Agreement charges. Total amortization of deferred charges for six months period ended June 30, 2014 and 2013
amounted to Rp48 billion and Rp91 billion, respectively.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
55
12. ADVANCES AND OTHER NON-CURRENT ASSETS continued
As of June 30, 2014 and December 31, 2013, restricted cash represents time deposits with original maturities of more than one year and cash pledged as collateral for bank guarantees for the USO
contract Note 41c.v and other contracts.
As of June 30, 2014 and December 31, 2013, the carrying amount of the Company and subsidiaries’ temporarily idle property and equipment amounted to Rp0 billion, respectively.
Refer to Note 37 for details of related party transactions.
13. INTANGIBLE ASSETS
i The changes in the carrying amount of goodwill, software, license and other intangible assets for
six months period ended June 30, 2014 and for the year ended December 31, 2013 are as follows:
Other intangible
Goodwill Software
License assets
Total
Gross carrying amount: Balance, December 31, 2013
270 3,432
67 401
4,170
Additions 323
6 328
Reclassifications translations 3
3 Balance, June 30, 2014
270 3,755
67 404
4,496 Accumulated amortization:
Balance, December 31, 2013
29 2,278
37 318
2,662
Amortization expense during the year
267 3
11 281
Balance, June 30, 2014 29
2,545 40
329 2,943
Net Book Value 241
1,210 27
75 1,553
Weighted-average amortization period
7.14 years 11.59 years
18.12 years
Other intangible
Goodwill Software
License assets
Total
Gross carrying amount: Balance, December 31, 2012
269 2,909
66 400
3,644 Additions
1 521
1 114
637 Deductions
- 8
- 112
120
Reclassifications translations -
10 -
1 9
Balance, December 31, 2013 270
3,432 67
401 4,170
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
56
13. INTANGIBLE ASSETS continued
Other intangible
Goodwill Software
License assets
Total
Accumulated amortization: Balance, December 31, 2012
29 1,825
31 316
2,201 Amortization expense during
the year -
458 6
114 578
Deductions -
8 -
112 120
Reclassifications translations -
3 -
- 3
Balance, December 31, 2013 29
2,278 37
318 2,662
Net Book Value 241
1,154 30
83 1,508
Weighted-average amortization period
7.51 years 11.30 years
3.63 years
ii Goodwill resulted from sales-purchase transaction of Data Center Business between Sigma and BDM in 2012 Note 1d, acquisitions of Ad Medika in 2010 and Sigma in 2008.
iii The estimated annual amortization expense of intangible assets from July 1, 2014 is approximately Rp513 billion. The remaining amortization periods of intangible assets, excluding
land rights, range from 0 to 20 years. iv The aggregate amounts of goodwill allocated to each CGU are as follows:
December 31, 2013
Sigma 88
Ad Medika 82
Total 170
Metra performed its annual impairment tests on those CGUs based on fair value less cost to sell using discounted cash flow projections. The impairment tests used management-approved cash
flow projections covering a five-year period. Key assumptions used in the impairment tests are as follows:
December 31, 2013
Sigma Ad Medika
Discount rate 11.0
14.0 Perpetuity growth rate
4.5 4.5
As of December 31, 2013, no impairment charge was required for goodwill on acquisition of subsidiaries, with any reasonably possible changes to the key assumptions applied not likely to
cause the carrying amounts of the CGUs to exceed their recoverable amounts.
v As of June 30, 2014 the cost of fully amortized intangible assets that are still used in operations amounted to Rp517 billion.