PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008,
AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated
122
53. RECENT ACCOUNTING PRONOUNCEMENTS IN INDONESIA continued
iii Interpretation on Indonesian Statement of Financial Accounting Standards “ISAK” 8, “Determining Whether an Arrangement Contains a Lease and Further Discussion on Transitional
Provisions of PSAK 30 Revised 2007” In September 2008, the DSAK issued ISAK 8, “Determining Whether an Arrangement Contains a
Lease and Further Discussion on Transitional Provisions of PSAK 30 Revised 2007”. ISAK 8 provides guidance on how to determine whether and when an arrangement contains a lease and
how to separate the payment for the lease from payments for any other elements in the arrangement. It also provides interpretation on transitional provision of PSAK 30 Revised 2007.
ISAK 8 shall be effective after January 1, 2008. The Company and its subsidiaries are currently assessing the impact of the application of ISAK 8 on the consolidated financial statements.
54. ACCOUNTS RECLASSIFICATION
Certain accounts in the consolidated financial statement for the nine months period ended September 30, 2007 has been reclassified to conform with the presentation of accounts of the
consolidated financial statement for the nine months period ended September 30, 2008, as follows:
Before After
reclassification Reclassification reclassification Consolidated balance sheet:
Accrued expenses 2,546,973
106,771 2,653,744
Accrued long service awards 246,583
179,840 66,743
Accrued pension and other post-retirement benefits costs
948,589 73,069
1,021,658
Consolidated income statement:
Interconnection revenues 8,760,988
617,344 9,378,332
Interconnection expenses
see Note below
1,640,124 617,344
2,257,468
Presentation of interconnection expenses account in consolidated financial statements for the nine months period ended September 30, 2007 has been reclassified to operating revenues as a deduction to interconnection revenues in consolidated
financial statements for the nine months period ended September 30, 2008.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued SEPTEMBER 30, 2007 AND 2008,
AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2007 AND 2008 Figures in tables are presented in millions of Rupiah, unless otherwise stated
123
55. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN INDONESIAN GAAP AND U.S. GAAP
The consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with Indonesian GAAP, which differ in certain significant respects from U.S. GAAP. A
description of the differences and their effects on net income and stockholders’ equity are set forth below:
1 Description of differences between Indonesian GAAP and U.S. GAAP
a. Voluntary termination benefits Under Indonesian GAAP, voluntary termination benefits are recognized as liabilities when the
Company is demonstratively committed to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
Under U.S. GAAP, voluntary termination benefits liabilities are recognized only when the employees have accepted the offer and the related amount can be reasonably estimated.
b. Foreign exchange differences capitalized to assets under construction Under Indonesian GAAP, foreign exchange gains and losses resulting from borrowings used
to finance the construction of the qualifying assets are capitalized as part of the cost of the qualifying assets. Capitalization of foreign exchange gains and losses ceases when the
construction of the qualifying asset is substantially completed and the constructed property is ready for its intended use.
Under U.S. GAAP, foreign exchange gains and losses are credited and charged to the consolidated statement of income as incurred.
c. Embedded derivative instrument The Company and its subsidiaries entered into contracts with their vendors which require
payments denominated in various currencies other than functional currencies of both parties. Under Indonesian GAAP, contracts which require payments denominated in foreign
currencies other than functional currencies of a party or substantial party to the contracts are not presumed to contain embedded foreign currency derivative instruments if the currencies
are commonly used in local business transactions.
Under U.S. GAAP, the contracts do not qualify for such exception unless they are routinely denominated in a currency commonly used in international commerce. Hence, the foreign
currency derivative instruments shall be separated from the host contract and accounted for as embedded foreign currency derivative instruments.
