Fair Value of Financial Assets and Financial Liabilities
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
- 117 -
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