SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 39 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued ab. Changes in accounting policies and disclosures continued Implementation of Offsetting Financial Assets and Financial Liabilities PSAK 50 continued As a result of the amendments, the comparative figures in the consolidated statements of financial position have been restated as follows: Before After restatement Restatement restatement Consolidated statement of financial position as of January 1, 2014 Trade receivables - net of provision for impairment of receivables Related parties 900 203 1,103 Third parties 5,126 394 5,520 Trade payables Related parties 826 203 1,029 Third parties 10,774 394 11,168 Consolidated statement of financial position as of December 31, 2014 Trade receivables - net of provision for impairment of receivables Related parties 746 127 873 Third parties 5,719 405 6,124 Trade payables Related parties 770 127 897 Third parties 11,060 405 11,465 The implementation of PSAK 50 2014, have no impact on the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows. Implementation of PSAK 24, Employee Benefits Revised 2013 The Group also applied PSAK 24 Revised 2013 retrospectively in the current period in accordance with the transition requirements of the revised standard. As a result of changes, the comparative figures in the consolidated financial statements have been restated as follows: Before After restatement Restatement restatement Consolidated statement of financial position as of January 1, 2014 Prepaid pension benefit costs 927 22 949 Deferred tax assets - net 82 15 67 Deferred tax liabilities - net 3,004 128 2,876 Post-retirement health care benefit costs provisions 752 241 993 Pension and other post-employment benefits 2,795 597 3,392 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 40 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued ab. Changes in accounting policies and disclosures continued Implementation of PSAK 24, Employee Benefits Revised 2013 continued Before After restatement Restatement restatement Consolidated statement of financial position as of January 1, 2014 continued Retained earnings Unappropriated 43,291 719 42,572 Net equity attributable to: Owners of the parent company 60,542 719 59,823 Non-controlling interests 16,882 16 16,898 Consolidated statement of financial position as of December 31, 2014 Prepaid pension benefit costs 771 399 1,170 Deferred tax assets - net 99 4 95 Deferred tax liabilities - net 2,743 89 2,654 Post-retirement health care benefit costs provisions 602 161 441 Pension and other post-employment benefits 3,092 778 3,870 Retained earnings Unappropriated 47,986 86 47,900 Net equity attributable to: Owners of the parent company 67,807 86 67,721 Non-controlling interests 18,318 47 18,271 Consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2014 Personnel expenses 9,616 171 9,787 Operating profit 29,377 171 29,206 Profit before income tax 28,784 171 28,613 Income tax expense benefit - deferred 278 1 277 Profit for the year 21,446 172 21,274 Actuarial gain