Earnings Per Financial Statement 2012
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
- 124 -
Carrying value Estimate Fair
Value Carrying value
Estimate Fair Value
Carrying value Estimate Fair
Value
Financial Liabilities Other financial liabilities
Deposits and deposits from other banks 11,961,837
11,961,837 13,846,225
13,846,225 9,747,916
9,747,916 Securities sold under agreements to repurchase
- -
39,125 39,125
32,069 32,069
Securities agent payables 141,222
141,222 93,740
93,740 417,590
417,590 Medium term notes
996,884 996,884
- -
- -
Loans received 999,619
999,619 930,904
930,904 512,265
512,265 Accrued expenses
75,920 75,920
69,620 69,620
43,868 43,868
Other liabilities 272,492
272,492 119,884
119,884 324,431
324,431 At fair value through profit and loss
Segregated funds contract liabilities - Unit link 3,943,326
3,943,326 4,548,419
4,548,419 7,054,710
7,054,710 Other assets - derivative liabilities
- -
- -
194 194
Total Financial Liabilities 18,391,300
18,391,300 19,647,917
19,647,917 18,133,043
18,133,043 December 31, 2012
December 31, 2011 December 31, 2010
January 1, 2011 As Restated - Note 62
As Restated - Note 62
Fair Value Hierarchy The following table discloses the fair value hierarchy of financial assets and liabilities:
Level 1 Level 2
Level 3 Total
Financial Assets Fair value through profit and loss
Shares and warrants 2,345,797
- -
2,345,797 Bonds
54,271 -
- 54,271
Units of mutual fund 9,822,730
- -
9,822,730 Segregated funds net assets - Unit link
1,782,462 1,931,850
1,258,027 4,972,339
Derivative assets -
2,285 -
2,285
Available for sale
Shares and warrants 595,461
- -
595,461 Bonds
3,788,248 -
- 3,788,248
Total Financial Assets 18,388,969
1,934,135 1,258,027
21,581,131
Financial Liabilities Fair value through profit and loss
Segregated funds contract liabilities - Unit link 3,943,326
- -
3,943,326 December 31, 2012
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly
available from an exchange, dealer, or broker, industry group pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transaction on an
arm’s lengths basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1
comprise primarily Indonesia Stock Exchange IDX equity investments, bonds investment and units of mutual fund investment classified as available-for-sale or trading securities and
segregated funds net assets - Unit link. The fair value of financial instruments that are not traded in an active market is determined by
using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity’s specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Instruments included in Level 2 comprise derivative assets and segregated funds net
assets - Unit link in form of units of mutual fund. If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level 3. Instruments included in Level 3 comprise segregated funds net assets - Unit link in form of units of mutual fund.
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
- 125 - Fair value of short term investments in securities shares that are traded in Indonesia Stock
Exhange, bonds and units of mutual fund and segregated funds net assets - unit link based on fair value, net asset value published was calculated by investment manager..
Fair value of loans, consumer financing receivables, finance lease, factoring receivables, and other receivables are determined based on discounted cash flow analysis using market interest
rate. There is no reliable basis for measuring the fair value of investment in shares Notes 2i and 17,
thus, the investments in shares are stated at cost. Deposits and deposits from other banks have a demand feature, thus, the fair value is not less
than the amount payable on demand discounted from the first date that the amount could be required to be paid which is equal to the carrying amount.
The fair value of loan received is determined based on discounted cash flow analysis using market interest rates.
Fair value of cash and cash equivalents, short-term investment in time deposits, placements with other banks, Bank Indonesia Intervention, export bill receivable, securities purchased under
agreements to resell, securities agent receivables, segregated funds net assets – unit link investment receivable, other assets security deposits and money transfer, securities sold
under agreement to repurchase, securities agent payables, accrued expenses, and other liabilities approximates the carrying value due to short term nature of transactions.