Insurance Underwriting Expenses Financial Statement 2011
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 114 -
Deferred Tax
Credited Credited
charged in charged in
consolidated consolidated statement of
statement of January 1,
comprehensive December 31,
comprehensive December 31,
2010 income
2010 income
2011 Rp 000,000
Rp 000,000 Rp 000,000
Rp 000,000 Rp 000,000
Deferred Tax Assets - Net Deferred tax assets liabilities:
Fiscal losses 1,006
- 1,006
- 1,006
Defined-benefit post- employment reserve
42 17
59 21
80 Depreciation expense
5 -
5 3
8 Employee loans
- 20
20 7
13 Total - Parent Company
1,053 37
1,090 17
1,107 Subsidiaries
15,758 13,288
2,470 12,464
14,934 Total
16,811 13,251
3,560 12,481
16,041 Deferred Tax Liabilities - Net
Subsidiary 33,466
8,526 41,992
13,164 55,156
In September 2008, Law No. 7 Year 1983 regarding “Income Tax” has been revised with Law No. 36 Year 2008. The revised Law stipulates changes in corporate income tax rates from
progressive tax rates to a flat rate of 28 for fiscal year 2009 and 25 for fiscal year 2010 onwards.
The management of the Company estimated that fiscal losses that can be realized in future periods amounted to Rp 4,025 million, hence, the related deferred tax asset recognized on the
unused fiscal losses amounted to Rp 1,006 million. As of December 31, 2011 and 2010, the unrecognized deferred tax asset on unused fiscal losses amounted to Rp 3,613 million and
Rp 3,649 million, respectively.
Management believes that deferred tax assets on temporary differences can be realized in the future.
A reconciliation between the total tax expense and the amounts computed by applying the effective tax rate to income before tax per consolidated statements of comprehensive income is
as follows:
2011 2010
Rp 000,000 Rp 000,000
Income before tax per consolidated statements of comprehensive income
2,054,271 1,367,617
Deduct: Income of the subsidiaries
2,016,282 1,330,447
Income before tax of the Parent Company 37,989
37,170 Tax expense at effective tax rates
9,497 9,292
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 115 -
2011 2010
Rp 000,000 Rp 000,000
Tax effects of permanent differences: Depreciation expense
984 982
Other expenses 914
115 Interest income
11 4
Rent income 250
1,035 Gain from investment in units of mutual funds
6,371 448
Equity in net income of the associates 6,294
7,097 Gain on sale of investment
- 3,179
General and administrative expenses -
359 Other income
- -
Net 11,028
10,307 Unrecognized deferred tax asset on fiscal losses
1,514 978
Tax benefit of the Parent Company 17
37 Tax expense of the subsidiaries
79,696 89,840
Total 79,679 89,803