PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
109
37. FINANCIAL RISK MANAGEMENT
1. Fair value of financial assets and financial liabilities a.
Classification i. Financial asset
June 30, 2017 December 31, 2016
Financial assets at fair value through profit or loss
Derivative asset
– put option -
- Loans and receivables
Cash and cash equivalents
19,068 29,767
Trade and other receivables, net
11,602 7,900
Other current financial assets
217
313 Other non-current assets
182
210 Available-for-sale financial assets
Available-for-sale investment
1,091 1,158
Total financial asset 32,160
39,348
ii. Financial liabilites
June 30, 2017 December 31, 2016
Financial liabilities measured at amortized cost
Trade and other payables 12,016
13,690 Accrued expenses
11,668 11,283
Interest-bearing loans and other borrowings
Short-term bank loans 1,781
911 Two-step loans
1,203 1,292
Bonds and notes 8,982
9,323 Long-term bank loans
17,549 15,566
Obligation under finance lease 3,859
4,010 Other borrowings
1,295 697
Total financial liabilities 58,353
56,772
b. Fair Value
Fair value measurement at reporting date using
June 30, 2017 Carrying
value Fair Value
Quoted prices in active markets for
identical assets or liabilities
level 1 Significant
other observable
inputs level 2
Significant unobservable
inputs level 3
Financial assets measured at fair value
Available-for-sale investment 1,091
1,091 1,074
17 -
Total 1,091
1,091 1,074
17 -
Financial liabilities for which fair values are disclosed
Interest-bearing loans and other borrowings
Two-step loans 1,203
1,227 -
- 1,227
Bonds and notes 8,982
9,806 9,806
- -
Long-term bank loans 17,549
17,502 -
- 17,502
Obligation under finance lease 3,859
3,859 -
- 3,859
Other borrowings 1,295
1,293 -
- 1,293
Total 32,888
33,687 9,806
- 23,881
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
110
37. FINANCIAL RISK MANAGEMENT continued
1. Fair value of financial assets and financial liabilities continued b. Fair Value continued
Fair value measurement at reporting date using
December 31, 2016 Carrying
value Fair Value
Quoted prices in active markets for
identical assets or liabilities
level 1 Significant
other observable
inputs level 2
Significant unobservable
inputs level 3
Financial assets measured at fair value
Available-for-sale investment 1,158
1,158 1,058
100 -
Total 1,158
1,158 1,058
100 -
Financial liabilities for which fair values are disclosed
Interest-bearing loans and other borrowings
Two-step loans 1,292
1,312 -
- 1,312
Bonds and notes 9,323
9,684 9,342
- 342
Long-term bank loans 15,566
15,404 -
- 15,404
Obligation under finance lease 4,010
4,010 -
- 4,010
Other borrowings 697
689 -
- 689
Total 30,888
31,099 9,342
- 21,757
Available-for-sale financial assets primarily consist of mutual funds, and corporate and government bonds. Mutual funds actively traded in an established market are stated at fair value
using quoted market price and classified within level 1. Corporate and government bonds are stated at fair value by reference to prices of similar securities at the reporting date. As they are
not actively traded in an established market, these securities are classified as level 2.
Financial asset at fair value through profit or loss represents the Put Option on the 20 remaining ownership in Indonusa which was received as part of the divestment considerations.
As the put option is subject to restrictions on redemption such as transfer restrictions and initial lock-up periods and observable activity for the investment is limited, this investment is therefore
classified within level 3 of the fair value hierarchy.
Reconciliations of the beginning and ending balances for items measured at fair value using significant unobservable inputs level 3 as of June 30, 2017 and 2016 are as follows:
2017 2016
Beginning balance -
172 Unrealized loss recognized in the consolidated statements
of profit or loss and other comprehensive income -
172
Ending balance -
-
