Revenue and IKHTISAR KEBIJAKAN

originally issued in Indonesian language k shibit E 40 Exhibit E40 PT MODERN INTERNASIONAL Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN UNTUK TAHUN YANG BERAKHIR PADA 31 DESEMBER 2016 Disajikan dalam Rupiah, kecuali dinyatakan lain PT MODERN INTERNASIONAL Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 Expressed in Rupiah, unless otherwise stated

3. PERTIMBANGAN, ESTIMASI,

DAN ASUMSI AKUNTANSI SIGNIFIKAN Lanjutan 3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS Continued Estimasi dan Asumsi Lanjutan Estimates and Assumptions Continued Imbalan Kerja Employee Benefits Penentuan liabilitas imbalan kerja Grup bergantung pada pemilihan asumsi yang digunakan oleh aktuaris independen dalam menghitung jumlah-jumlah tersebut. Asumsi tersebut termasuk antara lain, tingkat diskonto, tingkat kenaikan gaji tahunan, tingkat pengunduran diri karyawan tahunan, tingkat kecacatan, umur pensiun dan tingkat kematian. Hasil aktual yang berbeda dari asumsi yang ditetapkan Grup langsung diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian pada saat terjadinya. Sementara Grup berkeyakinan bahwa asumsi tersebut adalah wajar dan sesuai, perbedaan signifikan pada hasil aktual atau perubahan signifikan dalam asumsi yang ditetapkan Grup dapat mempengaruhi secara material liabilitas atas imbalan kerja dan beban imbalan kerja bersih. The determination of the Group employee benefits liabilities is dependent on its selection of certain assumptions used by the independent actuaries in calculating such amounts. Those assumptions include discount rates, future annual salary increase, annual employee turn-over rate, disability rate, retirement age and mortality rate. Actual results that differ from the Group assumptions are recognized immediately in consolidated statement of profit or loss and other comprehensive income as and when they occur. While the Group believes that its assumptions are reasonable and appropriate, significant differences in the Group actual experiences or significant changes in the Group assumptions may materially affect its liability for employee benefits and net employee benefits expense. Nilai tercatat atas liabilitas diestimasi imbalan kerja Grup pada tanggal 31 Desember 2016 dan 2015 masing-masing sebesar Rp 16.712.352.000 dan Rp 19.405.357.000. Penjelasan lebih rinci diungkapkan dalam Catatan 19. The carrying amount of the Group estimated liabilities for employee benefits as of 31 December 2016 and 2015 amounted to Rp 16,712,352,000 and Rp 19,405,357,000, respectively. Further details are disclosed in Note 19. 4. KAS DAN BANK 4. CASH ON HAND AND IN BANKS 31 Desember 2016 31 December 2016 31 Desember 2015 31 December 2015 K a s 6.729.717.869 8.490.074.065 Cash on hand B a n k Cash in banks Dalam Rupiah In Rupiah PT Bank Central Asia Tbk 2.740.768.958 7.893.611.735 PT Bank Central Asia Tbk PT Bank Negara Indonesia Persero Tbk 1.195.848.407 4.286.025.329 PT Bank Negara Indonesia Persero Tbk PT Bank Sinarmas Tbk 1.109.179.755 303.873.137 PT Bank Sinarmas Tbk PT Bank Mayapada Tbk 549.090.213 256.544.966 PT Bank Mayapada Tbk PT Bank Mandiri Persero Tbk 467.370.766 1.839.777.921 PT Bank Mandiri Persero Tbk PT Bank Rakyat Indonesia Persero Tbk 362.500.336 5.318.403 PT Bank Rakyat Indonesia Persero Tbk PT Bank Permata Tbk 157.222.047 3.407.192 PT Bank Permata Tbk PT Bank CIMB Niaga Tbk 60.175.450 4.044.252.722 PT Bank CIMB Niaga Tbk Dalam Dolar AS In US Dollar Standard Chartered Bank 3.093.180.429 3.201.475.591 Standard Chartered Bank PT Bank Permata Tbk 230.501.970 190.736.016 PT Bank Permata Tbk PT Bank Sinarmas Tbk 156.928.718 33.365.202 PT Bank Sinarmas Tbk PT Bank CIMB Niaga Tbk 119.460.581 35.540.100 PT Bank CIMB Niaga Tbk Bank of Tokyo - Mitsubishi UFJ 15.119.665 15.891.564 Bank of Tokyo - Mitsubishi UFJ PT Bank Central Asia Tbk 10.499.697 11.607.942 PT Bank Central Asia Tbk Lain-lain masing-masing di bawah Rp 100 juta 37.404.726 38.245.737 Others each below Rp 100 million Dalam Dolar Singapura In Singapore Dollar PT Bank CIMB Niaga Tbk 10.901.956 - PT Bank CIMB Niaga Tbk PT Bank Sinarmas Tbk - 445.239 PT Bank Sinarmas Tbk Sub-total 10.316.153.674 22.160.118.796 Sub-total T o t a l 17.045.871.543 30.650.192.861 T o t a l