28
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
Table of Contents
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial
instruments continued
i. Financial assets continued
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place regular way trades are
recognized on the trade date, i.e., the date that the Group commit to purchase or sell the assets.
The Group’s financial assets include cash and cash equivalents, other current financial assets, trade receivables and other receivables and other non-current financial assets.
a. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are financial assets classified as held
for trading. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling or repurchasing it in the near term and for which there is evidence
of a recent actual pattern of short-term profit taking. Gains or losses arising from changes in fair value of the trading securities are presented as other expensesincome in
consolidated statement of profit or loss and other comprehensive income in the period in which they arise. Financial asset measured at fair value through profit loss consists of
derivative asset-put option which is recognized as part of “Other Current Financial Assets” in the consolidated statement of financial position.
b. Loans and
receivables Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Loans and receivables consist of, among other things, cash and cash equivalents, other
current financial assets, trade and other receivables, and other non-current assets long- term trade receivables and restricted cash.
These are initially recognized at fair value including transaction costs and subsequently measured at amortized cost, using the effective interest method.
c. Held-to-maturity financial
assets Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities on which management has the positive intention and ability to hold to maturity, other than:
a those that the Group, upon initial recognition, designates as at fair value through profit or loss;
b those that the Group designates as available-for-sale; and c those that meet the definition of loans and receivables.
No financial assets were classified as held-to-maturity financial assets as of March 31, 2016 and December 31, 2015.
d. Available-for-sale financial assets Available-for-sale investments are non-derivative financial assets that are intended to be
held for indefinite periods of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or that are not classified as loans and
receivables, held-to-maturity investments or financial assets at fair value through profit or loss. Available-for-sale financial assets consist of available-for-sale securities which are
recorded as part of “Other Current Financial Assets” in the consolidated statement of financial position.
29
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
Table of Contents
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial
