Investments in associated companies
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued o. Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less or in the normal operating cycle of the business, if this period is longer. If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method.p. Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds net of transaction costs and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on obtaining loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facilities will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facilities to which it relates.q. Foreign currency translations
The functional currency and the recording currency of the Group are both the Indonesian rupiah, except for the functional currency of Telekomunikasi Indonesia International Pte. Ltd., Hong Kong, Telekomunikasi Indonesia International Pte., Singapore, and Telekomunikasi Indonesia International S.A., Timor Leste whose accounting records are maintained in U.S. dollars. Transactions in foreign currencies are translated into Indonesian rupiah at the rates of exchange prevailing at transaction date. At the consolidated statement of financial position date, monetary assets and liabilities denominated in foreign currencies are translated into Indonesian rupiah based on the buy and sell rates quoted by Reuters prevailing at the consolidated statement of financial position date, as follows: 2014 2013 Buy Sell Buy Sell U.S. dollar “US” 1 12,380 12,390 12,160 12,180 Euro 1 15,044 15,059 16,744 16,774 Yen 1 103.53 103.64 115.67 115.87 The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged to the consolidated statement of comprehensive income of the current year, except for foreign exchange differences incurred on borrowings during the construction of qualifying assets which are capitalized to the extent that the borrowings can be attributed to the construction of those qualifying assets Note 2l. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 292. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued r. Revenue and expense recognition
Parts
» GENERAL a. Establishment and general information
» Public offering of securities of the Company
» Subsidiaries GENERAL continued c. Public offering of securities of the Company continued
» GENERAL continued d. Subsidiaries continued
» Basis of preparation of financial statements
» Principles of consolidation SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» Transactions with related parties
» Investments in associated companies
» Inventories SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Prepaid expenses SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued h. Inventories continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Leases SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Deferred charges - land rights
» Borrowings SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued o. Trade payables
» Income tax SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s. Employee benefits continued
» Financial instruments SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued t. Income tax continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Dividends SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Financial instruments continued
» Basic earnings per share and earnings per ADS
» Provision SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued y. Segment information
» Retirement benefits SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued y. Segment information
» BUSINESS COMBINATIONS a. Acquisitions
» BUSINESS COMBINATIONS continued a. Acquisitions continued
» Disposal of Indonusa BUSINESS COMBINATIONS continued a. Acquisitions continued
» CASH AND CASH EQUIVALENTS 2014
» CASH AND CASH EQUIVALENTS continued 2014
» OTHER CURRENT FINANCIAL ASSETS 2014
» TRADE RECEIVABLES FS YE Audited 2014 English
» TRADE RECEIVABLES continued FS YE Audited 2014 English
» INVENTORIES 2014 FS YE Audited 2014 English
» ADVANCES AND PREPAID EXPENSES 2014
» LONG-TERM INVESTMENTS FS YE Audited 2014 English
» LONG-TERM INVESTMENTS continued FS YE Audited 2014 English
» PROPERTY AND EQUIPMENT FS YE Audited 2014 English
» PROPERTY AND EQUIPMENT continued
» ADVANCES AND OTHER NON-CURRENT ASSETS continued
» INTANGIBLE ASSETS continued FS YE Audited 2014 English
» TRADE PAYABLES 2014 FS YE Audited 2014 English
» ACCRUED EXPENSES 2014 UNEARNED INCOME
» SHORT-TERM BANK LOANS continued
» CURRENT MATURITIES OF LONG-TERM LIABILITIES
» TWO-STEP LOANS continued FS YE Audited 2014 English
» BONDS AND NOTES FS YE Audited 2014 English
» BONDS AND NOTES continued BANK LOANS
» BANK LOANS continued FS YE Audited 2014 English
» BANK LOANS continued BANK LOANS continued NON-CONTROLLING INTERESTS
» CAPITAL STOCK 2014 FS YE Audited 2014 English
» TREASURY STOCK continued FS YE Audited 2014 English
» REVENUES 2014 FS YE Audited 2014 English
» REVENUES continued FS YE Audited 2014 English
» PERSONNEL EXPENSES FS YE Audited 2014 English
» OPERATIONS, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES 2014
» GENERAL AND ADMINISTRATIVE EXPENSES 2014 TAXATION
» TAXATION continued FS YE Audited 2014 English
» TAXATION continued TAXATION continued
» CASH DIVIDENDS AND GENERAL RESERVE
» PENSION AND OTHER POST-EMPLOYMENT BENEFITS 2014
» Other post-employment benefits provisions
» Obligation under the Labor Law provisions
» Nature of relationships and accountstransactions with related parties
» 6,207 2014 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties
» 4,099 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties
» 602 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» 408 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Cash and cash equivalents Note 4 10,464
» 11,736 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» b. Other current financial assets Note 5
» 900 Trade receivables - net Note 6 746
» d. Advances and prepaid expenses Note 8
» 55 Advances and other non-current assets Note 12
» 826 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» h. Advances from customers and suppliers
» 67 Short-term bank loans Note 17
» j. Short-term bank loans Note 17
» Long-term bank loans Note 21
» 7,463 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued
» Significant agreements with related parties
» RELATED PARTY TRANSACTIONS continued
» SEGMENT INFORMATION FS YE Audited 2014 English
» SEGMENT INFORMATION continued FS YE Audited 2014 English
» REVENUE-SHARING ARRANGEMENTS “RSA” FS YE Audited 2014 English
» Fixed line telephone tariffs
» Mobile cellular telephone tariffs
» Capital expenditures continued SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
» Borrowings and other credit facilities
» Borrowings and other credit facilities continued Others
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued
» SIGNIFICANT COMMITMENTS AND AGREEMENTS continued
» CONTINGENCIES FS YE Audited 2014 English
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