PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Company and subsidiaries collectively referred to as “the Group” have been prepared in accordance with Financial Accounting Standards Standar
Akuntansi Keuangan” or “SAK includingIndonesian Statement of Financial Accounting Standards Pernyataan Standar Akuntansi Keuangan or “PSAK” and interpretation of Financial Accounting
Standards Interpretasi Standar Akuntansi Keuangan or “ISAK” in Indonesia published by the Financial Accounting Standards Board of Indonesian Institute of Accountant and Regulation No.
VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency “Bapepam-LK” regarding the Presentation and Disclosure of Financial Statements of Issuers or Public Companies,
enclosed in the decisionletterKEP-347BL2012.
a. Basis of preparation of financial statements
The consolidated financial statements, except for the consolidated statements of cash flows, are prepared on the accrual basis. The measurement basis used is historical cost, except for certain
accountswhich are measured using the basis mentioned in the relevant notes herein. The consolidated statements of cash flows are prepared using the direct method and present the
changes in cash and cash equivalents from operating, investing and financing activities. Figures in the consolidated financial statements are presented and rounded to billions of
Indonesian rupiah “Rp”, unless otherwise stated.
Accounting Standards Issued but not yet Effective
Effective January 1, 2017: Amendments to PSAK 1: Presentation of Financial Statements on Disclosure Initiative.
The amendments provide clarification on the application of the requirements of materiality, the flexibility of systematic order of the notes to the financial statements and the identification
of significant accounting policies. PSAK 3 Adjustment 2016: Interim Financial Reporting.
The PSAK provides clarification that the interim financial report is incomplete if the interim financial statements and any disclosure incorporated by cross-reference are not made
available to users of the interim financial statements on the same terms and at the same time.If the users of the interim financial statements can not access information in cross-
reference with the requirement and the same time, the interim financial statements are considered incomplete.
PSAK 24 Adjustment 2016: Employee Benefits. The PSAK provides clarification that high-quality corporate bonds should be assessed at the
currency level and not at the country level. PSAK 58 Adjustment 2016: Non-current Assets Held for Sale and Discontinued Operations.
The PSAK provides clarification that changes in the method of disposal of an asset or disposal group are considered a continuation of the original plan of disposal. It also clarify
that the changes in the method of disposal does not change the date of classification as asset or disposal group.
PSAK 60 Adjustment 2016: Financial Instruments: Disclosures. The PSAK provides clarification that the entity must assess the nature of servicing
arrangements as provided in paragraph PP30 and paragraphs 42C to determine whether the entity has a continuing involvement in financial assets and whether the disclosure
requirements related to continuing involvement are met.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
2. OF SIGNIFICANT ACCOUNTING POLICIES a. Basis of preparation of financial statements continued
