PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
47. Long Term Employee Benefits Liability
The Group determined long term employee benefits liability based on Law No. 13 Year 2003, dated March 25, 2003. No funding of the benefits has been made to date by the Group.
As of December 31, 2014 and 2013, the last actuarial valuation report on the the long term employee benefit liability of the Group was from an independent actuary.
A reconciliation of the present value of unfunded long term employee benefit liability to the amount of long-term employee benefits liability presented in the consolidated statements of
financial position is as follows:
2014 2013
Present value of unfunded long-term employee benefit liability
205,942 176,688
Unrecognized actuarial losses 72,101
69,880 Unrecognized past service costs
20 238
Long-term employee benefits liability 133,821
106,570
Following are details of long-term employee benefits expense:
2014 2013
Current service costs 21,865
20,580 Interest costs
13,658 9,288
Amortization of actuarial gain 3,720
2,942 Past service costs
773 145
Total long-term employee benefits expense 40,016
32,665
Movements of long-term employee benefit liability are as follows:
2014 2013
Long-term employee benefit liability at beginning of the year 106,570
96,838 Long-term employee benefit expense during the year Note 44
40,016 32,665
Long-term employee benefit payments during the year 12,765
22,933 Long-term employee benefit liability at end of the year
133,821 106,570
Principal actuarial assumptions used in the valuation of the defined post-employment benefits are as follows:
2014 2013
Future salary increase 0.00 - 8.00
6.00 - 8.00 Discount rate
8.00 - 10.00 8.00 - 8.50
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
48. Income Taxes
The tax expense of the Group consists of the following:
2014 2013
Current tax expense The Company
11,647 222,673
Subsidiaries 92,308
111,106 Subtotal
103,955 333,779
Deferred tax expense benefit The Company
88 1,000
Subsidiaries 527
40,825 Subtotal
439 41,825
Total 104,394
375,604
Current Tax A reconciliation between income before tax per consolidated statements of comprehensive
income of the Company and accumulated fiscal losses is as follows:
2014 2013
Income before tax per consolidated statements of comprehensive income
1,314,083 1,497,806
Deduct: Share in net income of the subsidiaries
1,163,657 405,967
Income before tax of the Company 150,426
1,091,839 Temporary difference:
Long term employee benefit expense 439
263 Permanent differences:
Depreciation expense 4,908
6,435 Other expenses
4,314 912
Interest income 17,885
27,605 Rent income
9,813 7,907
Gain from investment in units of mutual funds 70,330
6,125 Gain on sale on investment in shares
1,144 109,026
Share in net income of the associates 9,445
21,490 General and administrative expenses
6,766 -
Net 92,629
53,246 Taxable income
58,236 1,145,348
Accumulated fiscal losses in prior periods -
36,804 Uncompensated fiscal losses
- 4,819
Taxable income 58,236
1,113,363 Current tax expense
11,647 222,673
Prepaid tax 96
20 Current tax payable the Company
11,551 222,653
Current tax payable subsidiaries 8,957
23,784 Total current tax payable Note 28
20,508 246,437
In 2013, the Company’s fiscal losses has been offset with taxable income in 2013.
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
Deferred Tax
Credited Credited
Credited charged in
charged in charged in
consolidated consolidated
January 1, 2013 consolidated
statement of statement of
December 31, statement of
comprehensive December 31,
comprehensive December 31,
2012 financial position
income 2013
income 2014
Deferred Tax Assets Deferred tax assets
liabilities: Fiscal losses
1,006 -
1,006 -
- -
Long-term employee benefit expense
123 -
28 151
88 239
Depreciation expense 8
- 8
- -
- Employee loans
14 -
14 -
- -
Total - the Company 1,151
- 1,000
151 88
239 Subsidiaries
52,714 -
24,633 28,081
12,214 40,295
Total 53,865
- 25,633
28,232 12,302
40,534 Deferred Tax Liabilities
Subsidiaries 59,507
6,852 16,192
82,551 12,741
95,292
Management believes that deferred tax assets on temporary difference can be realized in the future.
In December 2007, the Government issued a regulation relating to a tax rate reduction of 5 from the applicable tax rates for publicly listed entities effective January 1, 2008, if they comply
with certain requirements relating to shareholding composition. Effective on November 21, 2013, regulation has changed with PP No. 77 Tahun 2013 with certain additional requirement has
provided a tax rate reduction of 5.
A reconciliation between the income before tax per consolidated statements of comprehensive income and fiscal losses is as follows:
2014 2013
Income before tax per consolidated statements of comprehensive income
1,314,083 1,497,806
Deduct: Share in net income of subsidiaries
1,163,657 405,967
Income before tax of the Company 150,426
1,091,839 Tax expense at effective tax rates
30,085 218,368
Tax effects of permanent differences: Depreciation expense
982 1,287
Other expenses 863
182 Interest income
3,577 5,521
Rent income 1,963
1,582 Gain from investment in units of mutual funds
14,066 1,225
Gain on sale of investment in shares 229
21,805 Share in net income of associates
1,889 4,298
General and administrative expenses 1,353
- Total
18,526 10,648
Unrecognized deferred tax asset on fiscal losses recovery -
5,343 Tax expense of the Company
11,559 223,673
Tax expense of the subsidiaries 92,835
151,931 Total
104,394 375,604
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