PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
26
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued q. Foreign currency translation
The functional currency and the recording currency of the Company and subsidiaries is 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 monetary liabilities balances 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:
September 30, 2013 December 31, 2012 Buy
Sell Buy
Sell United States Dollar “US” 1
11,570 11,590
9,630 9,645
Euro 1 15,623
15,652 12,721 12,743
Yen 1 118.17
118.43 111.65 111.84
The resulting foreign exchange gains or losses, realized and unrealized, are credited or charged to the consolidated statement of comprehensive income of the current period, 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.
r. Revenue and expense recognition
i. Fixed line telephone revenues
Revenues from fixed line installations are deferred including incremental costs and recognized as revenue over the expected term of the customer relationships. Based on
reviews of historical information and customer trends, the Company determined the expected term of the customer relationships in 2013 and 2012 to be 10 years. Revenues from usage
charges are recognized as customers incur the charges. Monthly subscription charges are recognized as revenues when incurred by subscribers.
ii. Cellular and fixed wireless telephone revenues Revenues from postpaid service, which consist of usage and monthly charges, are
recognized as follows: • Airtime and charges for value added services are recognized based on usage by
subscribers. • Monthly subscription charges are recognized as revenues when incurred by subscribers.
Revenues from prepaid card subscribers, which consist of the sale of starter packs also known as SIM cards in the case of cellular and RUIM in the case of fixed wireless
telephone and start-up load vouchers and pulse reload vouchers, are recognized as follows:
• Sales of SIM and RUIM cards are recognized as revenue upon delivery of the starter packs to distributors, dealers or directly to customers.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
27
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued r. Revenue and expense recognition continued
ii. Cellular and fixed wireless telephone revenues continued • Sales of pulse reload vouchers either bundled in starter packs or sold as separate items
are recognized initially as unearned income and recognized proportionately as usage revenue based on duration and total of successful calls made and the value added
services used by the subscribers or the expiration of the unused stored value of the voucher.
• Unutilized promotional credits are netted against unearned income. iii. Interconnection revenues
The revenues from network interconnection with other domestic and international telecommunications carriers are recognized monthly on the basis of the actual recorded
traffic for the month. Interconnection revenues consist of revenues derived from other operators’s subscriber calls to the Company and subsidiary operator’s subscribers incoming
and calls between subscribers of other operators through the Company and subsidiary’s network transit.
iv. Data, internet and information technology services revenues Revenues from data communication and internet are recognized based on service activity
and performance which is measured by duration of internet usage or based on the fixed amount charges depending on the arrangements with customers.
Revenues from sales, installation and implementation of computer software and hardware, computer data network installation service and installation are recognized when the goods
are delivered to customers or the installation takes place.
Revenue from computer software development service is recognized using the percentage of completion method.
v. Revenues from network Revenues from network consist of revenues from leased lines and satellite transponder
leases which are recognized over the period in which the services are rendered.
vi. Other telecommunications services revenues Revenues from other telecommunications services consist of Revenue-Sharing
Arrangements “RSA” and sales of other telecommunication services or goods. The RSA are recorded in a manner similar to capital leases where the property and
equipment and obligation under RSA are reflected in the consolidated statements of financial position. All revenues generated from the RSA are recorded as a component of revenues,
while a portion of the investors’ share of the revenues from the RSA is recorded as finance costs with the balance treated as a reduction of the obligation under RSA.
Universal Service Obligation “USO” compensation from construction activities to design, build and finance assets for the grantor are recognized on a stage of completion basis.
Revenues from operating and maintainance activities in respect of the assets under the concession are recognized when the services are rendered.
