Segregated Funds Net Assets and Contract Liabilities – Unit Link

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 3. Recognition of Securities Administration, Underwriting and Stock Brokerage Fees and Investment Management Income Securities administration fees, stock brokerage fees and underwriting fees are recognized as income when the services for trading of securities in the stock exchange and underwriting activities are performed. Investment management income is recognized based on agreed conditions as stated in the “Collective Investment Contract”. 4. Recognition of Other Revenue and Expenses Fees and Commissions Related to Financial Instruments Commission income and expense fees associated with the acquisition of financial instruments categorized as held to maturity, loans and receivables, and available for sale, or related to a period of time and that the amount is significant, is recorded as part of the fair value of financial assets or financial liability and amortized over the term of the financial instrument period using the effective interest rate method. Meanwhile, fees and commissions that are not significant in amounts are recognized as revenue when the revenue is received or expense at the time of payment. Other Fees and Commission Fees and commissions that are significant in amount and are not related to the issuance or acquisition of financial instruments and have maturity terms are treated as deferred income or expenses and amortized using the straight-line method over the term of the relevant transaction. Other fees and commission revenues not related to credit, such as banca assurance services, and revenues associated with import and export bank guarantee, are recognized as revenue associated with the services provided. Other Income and Expense Income from assets for lease operating lease is recognized using the straight-line method over the lease period Note 2k. Administration income incurred in relation with lease, consumer finance, and factoring transaction are recognized when earned. Other income expense are recognized when earned incurred and in accordance with their beneficial period accrual basis. ac. Employee Benefits Short-term employee benefits liability Short-term employee benefits are in form of wages, salaries, and other employee benefits and bonuses. Short-term employee benefits are recognized at its undiscounted amount as a liability after deducting any amount already paid in the consolidated statement of financial position and as an expense in the consolidated statement of comprehensive income. - 42 -