Securities Issued Summary of Significant Accounting and Financial Reporting Policies

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

e. Deferred Tax Assets

Deferred tax assets are recognized for all temporary differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective taxes bases to the extent that it is probable that taxable profit will be available against which the temporary differences can be utilized. Significant management estimates are required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. The carrying value of deferred tax assets is disclosed in Note 48.

f. Impairment of Non-Financial Assets

Impairment review is performed when certain impairment indicators are present. Determining the fair value of assets requires the estimation of cash flows expected to be generated from the continued use and ultimate disposition of such assets. Any significant changes in the assumptions used in determining the fair value may materially affect the assessment of recoverable values and any resulting impairment loss could have a material impact on results of operations. The carrying value of these assets in form of investment in shares at acquisition cost, investment properties, property and equipment, and foreclosed properties are as disclosed in Notes 17, 18, 19 and 20.

4. Cash and Cash in Banks

These consist of: 2014 2013 Cash on hand Rupiah 324,054 347,327 Foreign currencies Note 51 49,244 30,897 Total - cash on hand 373,298 378,224 Cash in banks Third parties Rupiah PT Bank Mayapada Internasional Tbk 144,140 40 Standard Chartered Bank, Indonesia 97,133 723 PT Bank Central Asia Tbk 46,134 37,603 PT Bank International Indonesia Tbk - Sharia Division 21,793 46,575 PT Bank Negara Indonesia Persero Tbk 10,385 9,198 PT Bank CIMB Niaga Tbk 9,256 4,669 PT Bank Internasional Indonesia Tbk 7,943 15,773 PT Bank Permata Tbk 6,150 119,355 PT Bank CIMB Niaga Tbk - Sharia Division 4,745 5,181 PT Bank Mandiri Persero Tbk 3,667 6,350 PT Bank Mega Tbk 78 8,647 Others below Rp 5,000 each 15,243 17,493 Total 366,667 271,607 - 49 -