Assets held for sale
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
32
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued p. Revenue and expense recognition continued
i. Implementation of PPSAK 1 “Withdrawal of PSAK 35 Accounting for Telecommunication
Services” continued presentation of the interconnection revenues from a “net” to a “gross” basis;
reclassification of outgoing calls to other operators from interconnection revenues to telephone revenues;
deferral of the installation and connection revenues including incremental costs and recognized as income over the expected term of the customer relationships Notes 2p.ii
and 2p.iii; and recognition of Revenue-Sharing Arrangements “RSA” in a manner similar to capital
leases where the property, plant and equipment and obligation under RSA are reflected on the consolidated statement of financial position as “Property, plant and equipment”
and “RSA liabilities under capital lease”, respectively. All revenues generated from the RSA are recorded as a component of operating revenues, while a portion of the
investors’ share of the revenues from the RSA is recorded as interest expense with the balance treated as a reduction of the obligation under RSA.
As a result of the changes, the comparative figures in the consolidated financial statements have been restated as follow:
Before After
restatement Restatement
restatement CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME FOR NINE
MONTHS PERIOD ENDED SEPTEMBER 30, 2010:
Operating Revenues 52,122,352
813,455 51,308,897
Operating Expenses 34,928,218
813,455 34,114,763
Other Expenses 715,298
35,980 679,318
Income Before Tax 16,478,836
35,980 16,514,816
Tax Expense 4,322,212
8,995 4,331,207
Income For The Period 12,156,624
26,985 12,183,609
Basic Earnings Per Share Net income per share
454.17 1.38
455.55 Net income per ADS
40 Series B shares per ADS 18,166.80
55.20 18,222.00
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
33
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued p. Revenue and expense recognition continued
ii. Fixed line telephone revenues Revenues from fixed line installations are deferred including incremental costs and
recognized as income over the expected term of the customer relationships. Revenues from usage charges are recognized as customers incur the charges. Monthly subscription charges
are recognized as revenues when incurred by subscribers.
iii. Cellular and fixed wireless telephone revenues Revenues from postpaid service, which consist of usage and monthly charges, are
recognized as follows: Connection fees for service connection are deferred including incremental costs and
recognized as income over the expected term of the customer relationships. 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:
Sale of SIM and RUIM cards are recognized as revenue upon delivery of the starter packs to distributors, dealers or directly to customers.
Sale 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. Revenues under Universal Service Obligation “USO“ arrangement are recognized when
telecommunication access is ready and the services are rendered. iv. Interconnection revenues
The revenues from network interconnection with other domestic and international telecommunications carriers are recognized as earned in accordance with contractual
agreements. Interconnection revenues consist of revenues derives from other operator’s subscriber call to the Company and its subsidiary operator’s subscribers incoming and calls
between subscribers of other operators through the Company and its subsidiary’s network transit.