Authorization for the issuance of the consolidated financial statements
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued b. Principles of consolidation continued
Profit or loss and each component of other comprehensive income “OCI” are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non- controlling interests having a deficit balance. Intercompany balances and transactions have been eliminated in the consolidated financial statements. In case of loss of control over a subsidiary, the Group: • derecognizes the assets including goodwill and liabilities of the subsidiary at the carrying amounts on the date when it loses control; • derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on the date when it loses control; • recognizes the fair value of the consideration received if any from the transaction, events, or condition that caused the loss of control; • recognizes the fair value of any investment retained in the subsidiary at fair value on the date of loss of control; • recognizes any surplus or deficit in profit or loss that is attributable to the Group.c. Transactions with related parties
The Group has transactions with related parties. The definition of related parties used is in accordance with the Bapepam-LK’s Regulation No. VIII.G.7 regarding the Presentations and Disclosures of Financial Statements of Issuers or Public companies, enclosed in the decision letter No. KEP-347BL2012. The party which is considered as a related party is a person or entity that is related to the entity that is preparing its financial statements. Under the Regulation of Bapepam-LK No.VIII.G.7, a government-related entity is an entity that is controlled, jointly controlled or significantly influenced by a government. Government in this context is the Minister of Finance or the Local Government, as the shareholder of the entity. Formerly, the Group in its disclosure applied the definition of related party used based on PSAK 7 “Related Party”. Key management personnel are identified as the persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director whether executive or otherwise of the Group. The related-party status extends to the key management of the subsidiaries to the extent they direct the operations of subsidiaries with minimal involvement from the Company’s management.d. Business combinations
Business combination is accounted for using the acquisition method. The consideration transferred is measured at fair value, which is the aggregate of the fair value of the assets transferred, liabilities incurred or assumed and the equity instruments issued in exchange for control of the acquiree. For each business combination, non-controlling interest is measured at fair value or at the proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Acquisition-related costs are expensed as incurred. The acquiree’s identifiable assets and liabilities are recognized at their fair values at the acquisition date. 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 162. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
Parts
» FS English Q3 2016 FINAL ammend2
» GENERAL a. Establishment and general information
» Public offering of securities of the Company
» GENERAL continued c. Public offering of securities of the Company continued
» GENERAL continued FS English Q3 2016 FINAL ammend2
» GENERAL continued d. Subsidiaries continued
» Authorization for the issuance of the consolidated financial statements
» Principles of consolidation SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Transactions with related parties
» Prepaid expenses SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued h. Inventories
» Intangible assets SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued h. Inventories
» Leases SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Borrowings SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. Deferred charges - land rights
» Revenue and expense recognition
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» Income tax SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Dividends SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Basic and diluted earnings per share and earnings per ADS
» Provision SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» CASH AND CASH EQUIVALENTS continued
» OTHER CURRENT FINANCIAL ASSETS
» TRADE AND OTHER RECEIVABLES continued
» INVENTORIES FS English Q3 2016 FINAL ammend2
» ADVANCES AND PREPAID EXPENSES September 30, LONG-TERM INVESTMENTS
» LONG-TERM INVESTMENTS continued FS English Q3 2016 FINAL ammend2
» LONG-TERM INVESTMENTS continued PROPERTY AND EQUIPMENT
» PROPERTY AND EQUIPMENT continued
» ADVANCES AND OTHER NON-CURRENT ASSETS continued
» ACCRUED EXPENSES September 30, FS English Q3 2016 FINAL ammend2
» UNEARNED INCOME FS English Q3 2016 FINAL ammend2
» SHORT-TERM BANK LOANS AN CURRENT MATURITIES OF LONG-TERM BORROWINGS continued
» SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS continued
» LONG-TERM BORROWINGS continued FS English Q3 2016 FINAL ammend2
» LONG-TERM BORROWINGS continued LONG-TERM BORROWINGS continued
» Trade LONG-TERM BORROWINGS continued
» NON-CONTROLLING INTERESTS FS English Q3 2016 FINAL ammend2
» NON-CONTROLLING INTERESTS continued FS English Q3 2016 FINAL ammend2
» CAPITAL STOCK FS English Q3 2016 FINAL ammend2
» 2,541 2,601,779,800 3,804 ADDITIONAL PAID-IN CAPITAL September 30,
» TREASURY STOCK continued OTHER EQUITY September 30,
» REVENUES 2016 FS English Q3 2016 FINAL ammend2
» OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES
» GENERAL AND ADMINISTRATIVE EXPENSES
» TAXATION continued FS English Q3 2016 FINAL ammend2
» CASH DIVIDENDS AND GENERAL RESERVE
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued
» Rate of compensation increases
» Post-employment health care benefit provisions
» Obligation under the Labor Law provisions
» 5,010 2016 2,521 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties
» 617 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 895 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 318 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Cash and cash equivalents Note 3
» Other current financial assets Note 4
» 1,104 Trade receivables - net Note 5 1,458
» 15 Trade receivables - net Note 5 1,458
» e. Advances and other non- 6
» Indosat Trade payables Note 12
» Sub-total Trade payables Note 12
» Bangtelindo Trade payables Note 12
» Entities under common control
» State-owned banks Accrued expenses Note 13
» 19 i. Advances from customers and suppliers
» BNI Advances from customers and suppliers
» Total Two-step loans Note 16a
» 1,520 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» k. Long-term bank loans - net Note 16c
» BRI RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Total Significant agreements with related parties
» RELATED PARTY TRANSACTIONS continued c. Significant agreements with related parties
» RELATED PARTY TRANSACTIONS continued d. Key management personnel remuneration
» OPERATING SEGMENT FS English Q3 2016 FINAL ammend2
» Fixed line telephone tariffs
» Mobile cellular telephone tariffs
» OPERATING SEGMENT continued SIGNIFICANT COMMITMENTS AND AGREEMENTS
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued a. Capital expenditures continued
» Others SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
» CONTINGENCIES FS English Q3 2016 FINAL ammend2
» CONTINGENCIES continued ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
» ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued FINANCIAL RISK MANAGEMENT
» FINANCIAL RISK MANAGEMENT continued
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