PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 13
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
d. Recognition of revenues and expenses i
Cellular telecommunications services
Monthly service charge is derived from postpaid customers which is recognised on a monthly basis upon billing.
Revenue from prepaid services is derived from the sale of starter pack and vouchers. Starter packs consist of a SIM Subscriber Identity Module card and voucher. The revenue
of SIM card sales and any discount granted is recognised upon delivery to distributors or directly to customers, excluding value-added taxes. Revenue from sales of vouchers for
prepaid services is not recognised at the time of sale. When a voucher is sold, the full amount of airtime sold is credited, without deduction of any commission, to the “Deferred
Revenue” account. When prepaid customers use the prepaid airtime or upon expiration of the voucher, the amount used or expired is recognised as cellular telecommunications
revenue in the consolidated statement of income.
ii Cellular interconnection services
Revenue from interconnection with other operators and inbound roaming revenue from overseas telecommunication providers are recognised on the basis of actual recorded call
traffic.
iii Other telecommunications services
Revenue from leased lines, rental of telecommunications towers and internet service provider revenue is recognised on a monthly basis upon billing based on prices agreed with
customers. When unearned revenue is received, the amounts received are recorded as deferred revenue and recognised as revenue when the services are provided.
Revenue from ITKPVoIP services is recognised at the time when the service is rendered based upon applicable tariffs.
iv Expenses
Expenses are recognised on an accrual basis.
Changes in presentation of interconnection revenue
In June 2009, the Financial Accounting Standards Board DSAK issued Statement of Withdrawal of Financial Accounting Standards No. 1. The statement, among other things, revokes PSAK 35
Accounting for Revenue from Telecommunication Services. The Statement is effective for financial statements with periods beginning on or after 1 January 2010 and earlier application is
allowed. The Company early adopted the Sta tement and changed the presentation of the interconnection revenue from net to gross basis.
Previously, the Company adopted a net basis for presentation of revenue from interconnection in accordance with telecommunications industry practice in Indonesia. As a result of the changes,
the comparative figures in the consolidated financial statements have been restated as follows:
PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 14
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
d. Recognition of revenues and expenses continued Changes in presentation of interconnection revenue continued
31032009 Before restatement
Revenue net of interconnection and telecommunications service charges 2,403,856
Operating expenses 2,178,577
After restatement Gross revenue net of discount
2,902,203 Operating expenses
2,676,924
e. Trade receivables
Trade receivables are presented at their estimated recoverable amount after an allowance for doubtful accounts. This allowance for doubtful accounts is made based on the management’s
evaluation of the collectibility of outstanding amounts. Accounts are written off in the period during which they are determined to be uncollectible.
f. Inventories
Inventories, mainly comprising vouchers and SIM cards, are valued at the lower of cost or net realisable value. Cost is calculated using the moving-average method.
A provision for obsolete and slow-moving inventory is determined on the basis of the estimated future sales of individual inventory items.
g. Leases
In 2007, DSAK issued PSAK 30 Revised 2007, “Leases”, which constituted a change in accounting policy. The PSAK is effective for the preparation of financial statements covering
periods beginning on or after 1 January 2008.
Under the PSAK 30 Revised 2007, the classification of leases is based on the extent to which risks and rewards incidental to ownership of a leased asset lie with the lessor or the lessee.
In 2008, DSAK issued an Interpretation of Statement of Financial Accounting Standard ISAK 8, “Determining whether an Arrangement contains a Lease and Further Explanation about
Transitional Provisions of PSAK 30 Revised 2007”.
i As lessee
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are
charged to the consolidated statement of income on a straight-line basis over the period of the lease.