PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
25
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
Property, plant and equipment under finance leases continued
Considering that the impact of application of the standard to 2006 and 2007 is insignificant, the Company charged the cumulative effect to the 2008 financial statements.
Finance leases shall be recognized as assets and liabilities in the balance sheets as the amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease
payments. Any initial direct costs of the Company and its subsidiaries are added to the amount recognized as an assets.
Minimum lease payments shall be apportioned between the finance charge and the reduction of the outstanding liability. The finance charge shall be allocated to each period during the lease
term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents shall be charged as expenses in the periods in which they are incurred.
Leased assets are depreciated using the same method over the shorter of the lease term and their economic useful life.
Leasing arrangements that do not meet the above criteria are accounted for as operating leases for which payments are charged as an expense on the straight-line basis over the period of
expected benefit.
m. Revenue-Sharing Arrangements RSA
Revenues from RSA are recognized based on the Company’s share as agreed upon in the contracts.
The Company records assets under RSA as “Property, plant and equipment under RSA” with a corresponding initial credit to “Unearned income on RSA” presented in the liabilities section of the
consolidated balance sheet based on the costs incurred by the investors as agreed upon in the contracts entered into between the Company and the investors. Property, plant and equipment
are depreciated over their estimated useful lives using the straight-line method Note 2k.
Unearned income related to the acquisition of the property, plant and equipment under RSA is amortized over the revenue-sharing period using the straight-line method.
At the end of the revenue-sharing period, the property, plant and equipment under RSA is reclassified to the “Property, plant and equipment” account.
n. KSO
Revenues from KSO include amortization of unearned initial investor payments, Minimum Telkom Revenues “MTR” and the Companys share of Distributable KSO Revenues “DKSOR”.
Unearned initial investor payments received are recorded net of all direct costs incurred in connection with the KSO agreement and amortized using the straight-line method over the KSO
period of 15 years starting from January 1, 1996.
MTR are recognized on a monthly basis based on the contracted MTR amount for the current period.
The Companys share of DKSOR is recognized on the basis of the Companys percentage share of the KSO revenues, net of MTR and operational expenses of the KSO Units, as provided in the
KSO agreements.
Under PSAK 39, “Accounting for Joint Operation Schemes”, which supersedes paragraph 14 of PSAK 35, “Accounting for Telecommunications Services Revenue”, the assets built by the
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2008 AND 2009,
AND SIX MONTHS PERIOD ENDED JUNE 30, 2008 AND 2009 Figures in tables are presented in millions of Rupiah, unless otherwise stated
26
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued n. KSO continued
