PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010
SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
31
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued u. Treasury Stock
Reacquired Company’s stock is accounted for at its reacquisition cost and classified as “Treasury Stock” and presented as a deduction to stockholders’ equity. The cost of treasury stock sold is
accounted for using the weighted average method. The difference resulting from the cost and the proceeds from the sale of treasury stock is credited to “Paid-in Capital”.
v. Dividends
Dividend distribution to the Company’s stockholders is recognized as liability in the Company’s consolidated financial statements in the period in which the dividends are approved by the
Company’s stockholders. For interim dividends, the Company recognized them as liability based on the Board of Director’s decision with the approval from the Board of Commissioners.
w. Earnings per share and earnings per ADS
Basic earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the year. Net income per ADS is computed by multiplying basic
earnings per share by 40, the number of shares represented by each ADS.
x. Segment information
The Company and its subsidiaries segment information is presented based upon identified business segments. A business segment is a distinguishable unit that provides different products
and services and is managed separately. Business segment information is consistent with operating information routinely reported to the Companys chief operating decision maker.
y. Use of estimates
The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures
of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject
to such estimates and assumptions include the carrying amount of property, plant and equipment and intangible assets, the valuation allowance for receivables and obligations related to employee
benefits. Actual results could differ from those estimates. In determining some estimates, management utilizes the work of 3
rd
party specialists as required. In using specialists to assist with models and calculations, management reviews the underlying assumptions and assesses
the corresponding calculations for reasonableness in the context of the circumstances of the Company.
3. TRANSLATION OF RUPIAH INTO UNITED STATES DOLLARS
The consolidated financial statements are stated in Indonesian Rupiah “Rupiah”. The translations of Indonesian Rupiah amounts into U.S. Dollars are included solely for the convenience of the readers
and have been made using the average of the market buy and sell rates of Rp.9,065 to US1 as published by Reuters on June 30, 2010. The convenience translations should not be construed as
representations that the Indonesian Rupiah amounts have been, could have been, or could in the future be, converted into United States Dollars at this or any other rate of exchange.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010
SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated
32
4. ACQUISITIONS OF SIGMA AND AD MEDIKA a. Acquisitions of Sigma
On February 21, 2008, Metra and Sigma’s stockholders, PT Sigma Citra Harmoni “SCH” and Trozenin Management Plc signed an Amendment to the Sales and Purchase of Shares
Agreement which authorized Metra to acquire 80 of the outstanding common stock of Sigma for US35.2 million or equivalent to Rp.331,052 million, which became effective on February 22,
2008 the “closing date” Note 1d.b.
Sigma is an Information Technology “IT” Services company that provides software for banking, multi finance and manufacturing companies. Through the acquisition, the Company started to
broaden its services to adjacent industries especially IT services by combining Sigmas expertise and the Companys corporate customer base. Goodwill in respect of the acquisition comprises
principally the fair value of the skills and expertise of the acquired companys workforce.
Metra and SCH have agreed to support Sigma in achieving an IPO in 24 months from closing date. Pursuant to the agreement, SCH, which holds the remaining 20 ownership in Sigma, has
a put option requiring Metra to purchase the minority. The option price is the higher of the transacted price per share indexed to interest rates and fair value based on an independent
appraisal. Based on SCH’s letter to Metra No. 036METRASCHIV10 dated April 30, 2010 regarding notification in accordance with the executed option agreement dated
February 22, 2008, SCH will execute the put option starting 90 days after receiving the letter which is on August 2, 2010. As of the issuance date of the consolidated financial statements,
Metra and SCH are still assessing the option value.
The acquisition of Sigma has been accounted for using the purchase method of accounting, where the purchase price was allocated to fair value of the acquired assets and assumed
liabilities. The allocation of the acquisition cost was as follows:
Rp.
The assets and liabilities arising from the acquisition are as follows: Current assets
150,461 Property, plant and equipments
86,886 Other non-current assets
29,686 Intangible assets
189,405 Current liabilities
75,347 Long-term liabilities
37,570 Deferred tax liabilities
54,636 Minority interests
57,777 Fair value of net assets acquired
231,108 Goodwill
99,944
Total purchase consideration 331,052
Less: Cash and cash equivalents in subsidiary acquired
43,649
Cash outflow from acquisition 287,403
