Functional Currency Management Use of Estimates, Judgments and Assumptions

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2012 and 2011 and January 1, 2011December 31, 2010 and For the Years then Ended December 31, 2012 and 2011 Figures are Presented in Millions of Rupiah, unless Otherwise Stated - 55 -

f. Impairment of Non-Financial Assets

Impairment review is performed when certain impairment indicators are present. Determining the fair value of assets requires the estimation of cash flows expected to be generated from the continued use and ultimate disposition of such assets. Any significant changes in the assumptions used in determining the fair value may materially affect the assessment of recoverable values and any resulting impairment loss could have a material impact on results of operations. The carrying value of these assets in form of investment in shares at acquisition cost, investment properties, property and equipment and foreclosed properties are as disclosed in Notes 17, 18, 19 and 20.

4. Cash and Cash Equivalents

This account consists of: January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Cash on Hand Rupiah 267,353 414,169 211,139 Foreign currencies Note 54 17,817 54,300 59,484 Total - cash on hand 285,170 468,469 270,623 Cash in Banks Related party Note 53 Foreign currency Note 54 Bank International Ningbo, China - 22,742 277 Third parties Rupiah PT Bank Central Asia Tbk 48,860 32,091 15,922 PT Bank Internasional Indonesia Tbk 18,600 7,665 7,752 PT International Indonesia Tbk - Sharia Division 11,712 9,414 690 PT Bank CIMB Niaga Tbk 9,013 1,337 1,578 PT Bank Negara Indonesia Persero Tbk 7,050 2,003 707 PT Bank CIMB Niaga Tbk - Sharia Division 3,876 4,087 3,256 PT Bank Mandiri Persero Tbk 2,442 3,142 2,352 PT Bank OCBC NISP Tbk 1,724 1,504 219 Standard Chartered Bank, Indonesia 1,686 185 59 PT Bank Artha Graha International Tbk 1,672 386 11 PT Bank Syariah Mandiri 912 3,225 592 PT Bank Permata Tbk - Sharia Division 356 1,438 34 PT Bank Danamon Indonesia Tbk 170 246 10,120 Others below Rp 1,000 each 6,617 8,416 9,936 Total 114,690 75,139 53,228