PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated
8
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
The following significant accounting policies were consistently applied in the preparation of the consolidated financial statements for the years ended December 31, 2009 and 2008:
a. Basis of Preparation of the Financial Statements
The consolidated financial statements, presented in Rupiah unless otherwise stated, are prepared on the accrual basis using historical cost concept, except for inventories which are stated at the
lower of cost or net realizable value.
The consolidated statements of cash flows, which are prepared using the direct method, present receipts and disbursements of cash and cash equivalents classified into operating, investing and
financing activities.
The reporting currency used in the consolidated financial statements is Rupiah.
b. Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its Subsidiaries, which was directly owned by the Company, with more than 50 of voting shares. All the
significant intercompany accounts and transactions are eliminated.
In accordance with SFAS No. 11, “Translation of Financial Statements in Foreign Currencies”, for the purpose of consolidating the foreign Subsidiary and the related calculation of equity share in
net earnings losses, the financial statement accounts of such foreign Subsidiary are translated into Rupiah amount using middle rate as of balance sheet date for asset and liability accounts,
historical rate for equity accounts and average middle rate during the year for profit and loss accounts. The resulting differences arising from the translation in foreign currency are presented
as “Difference in Foreign Currency Translation of Financial Statements” under the Equity section in the consolidated balance sheets.
The shares of the minority shareholders in the net assets of Subsidiary are reflected as “Minority Interests in Net Assets of A Consolidated Subsidiary” in the consolidated balance sheets. The
losses applicable to the minority in a consolidated subsidiary may exceed the minority interest in the equity of the subsidiary. The excess, and any further losses applicable to the minority, are
charged against the majority interest except to the extent that minority has a binding obligation to, and is able to, make good the losses. If the subsidiary subsequently reports profits, the majority
interest is allocated all such profits until the minority’s share of losses previously absorbed by the majority has been recovered.
c. Foreign Currency Transactions and Balances
Transactions in foreign currencies are recorded in Rupiah at the rates of exchange prevailing on the date of the transactions.
At balance sheet date, monetary assets and liabilities denominated in foreign currencies are adjusted into Rupiah using Bank Indonesia’s middle rate at the last banking transaction date of the
year. The resulting foreign exchange gains or losses are credited or charged to the consolidated statement of income for the year.
PT TRIKOMSEL OKE Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2009 and 2008 Expressed in Rupiah Unless Otherwise Stated
9
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued c. Foreign Currency Transactions and Balances continued
