PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
115
44. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued e. Liquidity risk continued
The following is the maturity profile of the Company and subsidiaries’ financial liabilities:
Carrying Contractual
2018 and amount
cash flows 2014
2015 2016
2017 thereafter
December 31, 2013 Trade and other payables
11,988 11,988
11,988 -
- -
- Accrued expenses
5,264 5,264
5,264 -
- -
- Loans and other borrowings
Bank loans 10,023
11,618 5,028
3,264 1,248
980 1,098
Obligations under finance leases
4,969 6,904
1,070 885
847 813
3,289 Two-step loans
1,915 2,308
292 285
278 271
1,182 Bonds and notes
3,349 4,817
582 1,311
215 203
2,506
Total 37,508
42,899 24,224
5,745 2,588
2,267 8,075
Carrying Contractual
2017 and amount
cash flows 2013
2014 2015
2016 thereafter
December 31, 2012 Trade and other payables
7,456 7,456
7,456 -
- -
- Accrued expenses
6,163 6,163
6,163 -
- -
- Loans and other borrowings
Bank loans 11,295
12,585 5,118
3,869 2,518
602 478
Obligations under finance leases
2,324 3,172
652 548
398 354
1,220 Two-step loans
1,987 2,462
283 277
270 263
1,369 Bonds and notes
3,669 5,462
757 505
1,287 203
2,710
Total 32,894
37,300 20,429
5,199 4,473
1,422 5,777
The difference between the carrying amount and the contractual cash flows is interest value. 2. Fair value of financial assets and financial liabilities
a. Fair value measurement
Fair value is the amount for which an asset could be exchanged, or liability settled, between in an arm’s length transaction.
The Company and subsidiaries determined the fair value measurement for disclosure purposes of each class of financial assets and financial liabilities based on the following
methods and assumptions:
i The fair values of short-term financial assets and financial liabilities with maturities of one year or less cash and cash equivalents, trade receivables, other receivables, other
current assets, trade payables, other payables, dividend payable, accrued expenses, advances from customers and suppliers and short-term bank loans are considered to
approximate their carrying amounts as the impact of discounting is not significant .
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
116
44. FINANCIAL RISK MANAGEMENT continued
2. Fair value of financial assets and financial liabilities continued a.
Fair value measurement continued ii Available-for-sale financial assets primarily consist of shares, mutual funds and Corporate
and Government bonds. Shares and mutual funds actively traded in an established market are stated at fair value using quoted market price or, if unquoted, determined using a
valuation technique. Corporate and Government bonds are stated at fair value by reference to prices of similar securities at the reporting date.
iii The fair values of long-term financial liabilities are estimated by discounting the future contractual cash flows of each liability at rates offered to the Company and subsidiaries for
similar liabilities of comparable maturities by the bankers of the Company and subsidiaries, except for bonds which are based on market prices.
The fair value estimates are inherently judgmental and involve various limitations, including: a. Fair values presented do not take into consideration the effect of future currency
fluctuations. b. Estimated fair values are not necessarily indicative of the amounts that the Company and
subsidiaries would record upon disposaltermination of the financial assets and liabilities. b. Classification and fair value
The following table presents the carrying value and estimated fair values of the Company and subsidiaries financial assets and liabilities based on their classifications:
December 31, 2013 Other
Total Loans and
Available for financial
carrying Fair
Trading receivables
sale liabilities
amount value
Cash and cash equivalents -
14,696 -
- 14,696
14,696 Other current financial assets
- 6,600
272 -
6,872 6,872
Trade and other receivables, net -
6,421 -
- 6,421
6,421 Long-term investments
- -
21 -
21 21
Advances and other non-current assets -
685 -
- 685
685
Total financial assets -
28,402 293
- 28,695
28,695
Trade and other payables -
- -
11,988 11,988
11,988 Accrued expenses
- -
- 5,264
5,264 5,264
Loans and other borrowings Short-term bank loans
- -
- 432
432 432
Obligations under finance leases -
- -
4,969 4,969
4,969 Two-step loans
- -
- 1,915
1,915 1,921
Bonds and notes -
- -
3,349 3,349
3,490 Long-term bank loans
- -
- 9,591
9,591 9,474
Total financial liabilities -
- -
37,508 37,508
37,538