Employees, Directors and Commissioners

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 4. AFS Financial Assets AFS financial assets are those which are designated as such or not classified in any of the other categories. They are purchased and held indefinitely and may be sold in response to liquidity requirements or changes in market conditions. After initial measurement, AFS financial assets are measured at fair value with unrealized gains or losses recognized as other comprehensive income, until the investment is sold, or determined to be impaired, at which time the cumulative gain or loss is reclassified to the profit and loss and removed from comprehensive income. As of December 31, 2014 and 2013, this category includes short-term invesments – securities bonds, Republic of Indonesia – ROI Loans, shares that are traded in Indonesia Stock Exchange, placement with Bank Indonesia, and investment in shares of stock. In the absence of a reliable basis for determining the fair value, the Group’s investments in shares of stock enumerated in Note 17 are carried at cost, net of any impairment. Financial Liabilities 1. Financial Liabilities at FVPL Financial liabilities are classified in this category if these result from trading activities or derivative transactions that are not accounted for as accounting hedges, or when the Group elects to designate a financial liability under this category. Changes in fair value are recognized directly in the consolidated statement of comprehensive income. As of December 31, 2014 and 2013, this category includes segregated funds contract liabilities – unit linked policies and other liabilities – derivative liabilities. 2. Other Financial Liabilities This category pertains to financial liabilities that are not held for trading or not designated at FVPL upon the inception of the liability. Issued financial instruments or their components, which are not classified as financial liabilities at FVPL are classified as other financial liabilities, where the substance of the contractual arrangement results in the Group having an obligation either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of own equity shares. Other financial liabilities are recognized initially at fair value and are subsequently carried at amortized cost, taking into account the impact of applying the effective interest method of amortization or accretion for any related premium, discount, and any directly attributable transaction costs. As of December 31, 2014 and 2013, this category includes deposits and deposits from other banks, payables to brokers, accrued expenses, securities issued, loans received, and other liabilities. - 25 -