Net Monetary Assets and Liabilities Denominated in Foreign Currencies
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
As of the end of the reporting period, the Group has the following floating rate loans, deposits and deposits from other banks and loans received.
2014 2013
Asset Loans
9,417,314 6,436,172
Liabilities Deposits and deposits from other banks
8,165,523 8,872,985
Loans received 485,650
469,692 The Group analyzes its interest rate exposure on a dynamic basis. Various scenarios are
simulated taking into consideration refinancing, renewal of existing positions, alternative financing. For each simulation, the same interest rate is used for all currencies. Based on
these scenarios, the Group calculates the impact on profit or loss of a defined interest rate shift. The scenarios are applied only for liabilities that represent the major interest-bearing
positions. As of December 31, 2014 and 2013, if interest rates on loans, deposits and deposits from
other banks and loans received had been 1 higherlower with all other variables held constant, post-tax profit for the year would have been higherlower amounting to Rp 575 and
Rp 2,181, respectively, mainly as a result of higherlower interest income and interest expense on loans and loans received with floating interes rates.
b. Foreign currency risk
The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the U.S. Dollar. Foreign exchange risk arises from future
commercial transactions and recognized assets and liabilities. Management has set up a policy to require Group to manage the foreign exchange risk
against their functional currency. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the
entity’s functional currency. The risk is measured using cash flow forecasts.
As of December 31, 2014 and 2013, if the currency had weakenedstrengthened by 5, against the U.S. Dollar with all other variables held constant, post-tax profit for the year
would have been higherlower amounting to Rp 7,984 and Rp 7,986, respectively, mainly as a result of foreign exchange gains losses on translation of financial assets and liabilities.
c. Price risk
The Group is exposed to equity and debt securities price risk because of investments held by the Group and classified on the consolidated statements of financial position either as
available-for-sale or at fair value through profit or loss. To manage its price risk arising from investments in equity securities, the Group diversifies
its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
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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
The Group has investments in shares of other entities that are traded in stock exchange, investment in units of mutual funds, and investment in debt securities that would have an
impact on the increasedecrease on post-tax profit for the period and other equity component. With assumption if FVPL equity and debt securities price assumption of being
1 higherlower with all other variables held constant, post-tax profit in 2014 and 2013 would have been higherlower amounting to Rp 77,839 and Rp 82,578, respectively, while if
AFS’ equity and debt securities had been 1 higherlower with all other variables held constant, other equity component would have been higherlower amounting to Rp 93,208
and Rp 92,888 higherlower. Post-tax profit for the year would increasedecrease as a result of gains losses on equity securities classified as at fair value through profit or loss. Other
components of equity would increasedecrease as a result of gains losses on equity securities classified as available-for-sale.
To manage price risk arising from investments in debt securities, the Group performs an analysis of the offered interest rate of bonds and the required rate of return which is
generally expected by the market.
Liquidity Risk Liquidity risk is a risk arising when the cash flow position of the Group is not enough to cover the
liabilities which become due. In the management of liquidity risk, management monitors and maintains a level of cash and
cash equivalents deemed adequate to finance the Group’s operations and to mitigate the effects of fluctuation in cash flows. Management also regularly evaluates the projected and actual cash
flows, including loan maturity profiles, and continuously assess conditions in the financial markets for opportunities to obtain optimal funding sources.
The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period to the contractual maturity date. The amounts disclosed in the table are
the contractual undiscounted cash flow:
1 year 2 year
Transaction 1 year
to 2 year to 5 year
5 year Total
cost Total
Liabilities Deposits and deposits from other banks
17,165,314 -
- -
17,165,314 -
17,165,314 Securities issued
800,000 -
500,000 -
1,300,000 6,546
1,293,454 Loans received
574,851 -
- -
574,851 1,014
573,837 Acceptances payable
67,836 -
- -
67,836 -
67,836 Payables to brokers
193,927 -
- -
193,927 -
193,927 Accrued expenses
104,096 -
- -
104,096 -
104,096 Other liabilities
260,270 -
- -
260,270 -
260,270 Total liabilities
19,166,294 -
500,000 -
19,666,294 7,560
19,658,734 2014
1 year 2 year
Transaction 1 year
to 2 year to 5 year
5 year Total
cost Total
Liabilities Deposits and deposits from other banks
13,607,470 -
- -
13,607,470 -
13,607,470 Acceptances payable
238,324 -
- -
238,324 -
238,324 Securities issued
- 800,000
500,000 -
1,300,000 9,096
1,290,904 Loans received
716,474 -
- -
716,474 1,579
714,895 Payables to brokers
81,341 -
- -
81,341 -
81,341 Accrued expenses
88,004 -
- -
88,004 -
88,004 Other liabilities
366,369 -
- -
366,369 -
366,369 Total liabilities
15,097,982 800,000
500,000 -
16,397,982 10,675
16,387,307 2013
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