PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
121
44. FINANCIAL RISK MANAGEMENT continued
1. Financial risk management continued e. Liquidity risk continued
Carrying Contractual
2018 and amount
cash flows 2014 2015
2016 2017 thereafter
December 31, 2013
Trade and other payables 11,988
11,988 11,988 -
- -
- Accrued expenses
5,264 5,264
5,264 -
- -
- Loans and other borrowings
Bank loans 10,023
11,618 5,028
3,264 1,248
980 1,098
Obligations under finance leases
4,969 6,904
1,070 885
847 813
3,289 Two-step loans
1,915 2,308
292 285
278 271
1,182 Bonds and notes
3,349 4,817
582 1,311
215 203
2,506
Total 37,508
42,899 24,224 5,745
2,588 2,267
8,075
The difference between the carrying amount and the contractual cash flows is interest value. 2. Fair value of financial assets and financial liabilities
a. Fair value measurement Fair value is the amount for which an asset could be exchanged, or liability settled, in an
arm’s length transaction. The Group determined the fair value measurement for disclosure purposes of each class of
financial assets and financial liabilities based on the following methods and assumptions: i The fair values of short-term financial assets and financial liabilities with maturities of one
year or less cash and cash equivalents, trade receivables, other receivables, other current assets, trade payables, other payables, accrued expenses, and short-term bank
loans, long-term investments, advances and other non-current assets are considered to approximate their carrying amounts as the impact of discounting is not significant.
ii Available-for-sale financial assets primarily consist of shares, mutual funds and Corporate and Government bonds. Shares and mutual funds actively traded in an established market
are stated at fair value using quoted market price or, if unquoted, determined using a valuation technique. Corporate and Government bonds are stated at fair value by
reference to prices of similar securities at the reporting date.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
122
44. FINANCIAL RISK MANAGEMENT continued
2. Fair value of financial assets and financial liabilities continued a. Fair value measurement continued
iii The fair values of long-term financial liabilities are estimated by discounting the future contractual cash flows of each liability at rates offered to the Group for similar liabilities of
comparable maturities by the bankers of the Group, except for bonds which are based on market prices.
The fair value estimates are inherently judgmental and involve various limitations, including: a. Fair values presented do not take into consideration the effect of future currency
fluctuations. b. Estimated fair values are not necessarily indicative of the amounts that the Group would
record upon disposaltermination of the financial assets and liabilities. b. Classification and fair value
The following table presents the carrying value and estimated fair values of the Groups financial assets and liabilities based on their classifications:
December 31, 2014 Other
Total Loans and Available for
financial carrying
Fair Trading receivables
sale liabilities
amount value
Cash and cash equivalents -
17,672 -
- 17,672
17,672 Other current financial assets
- 2,543
254 -
2,797 2,797
Trade and other receivables, net -
6,848 -
- 6,848
6,848 Long-term investments
- -
16 -
16 16
Advances and other non-current assets -
546 -
- 546
546
Total financial assets -
27,609 270
- 27,879
27,879
Trade and other payables -
- -
11,944 11,944
11,944 Accrued expenses
- -
- 5,211
5,211 5,211
Loans and other borrowings Short-term bank loans
- -
- 1,810
1,810 1,810
Long-term bank loans -
- -
11,930 11,930
11,787 Obligation under finance lease
- -
- 4,789
4,789 4,789
Bonds and notes -
- -
3,308 3,308
3,355 Two-step loans
- -
- 1,615
1,615 1,650
Total financial liabilities -
- -
40,607 40,607
40,546 December 31, 2013
Other Total
Loans and Available for financial
carrying Fair
Trading receivables sale
liabilities amount
value
Cash and cash equivalents -
14,696 -
- 14,696
14,696 Other current financial assets
- 6,600
272 -
6,872 6,872
Trade and other receivables, net -
6,421 -
- 6,421
6,421 Long-term investments
- -
21 -
21 21
Advances and other non-current assets -
685 -
- 685
685
Total financial assets -
28,402 293
- 28,695
28,695
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
123
44. FINANCIAL RISK MANAGEMENT continued
2. Fair value of financial assets and financial liabilities continued b. Classification and fair value continued
December 31, 2013 Other
Total Loans and Available for
financial carrying
Fair Trading receivables
sale liabilities
amount value
Trade and other payables -
- -
11,988 11,988
11,988 Accrued expenses
- -
- 5,264
5,264 5,264
Loans and other borrowings Short-term bank loans
- -
- 432
432 432
Obligations under finance leases -
- -
4,969 4,969
4,969 Two-step loans
- -
- 1,915
1,915 1,921
Bonds and notes -
- -
3,349 3,349
3,490 Long-term bank loans
- -
- 9,591
9,591 9,474
Total financial liabilities -
- -
37,508 37,508
37,538
c. Fair value hierarchy The table below presents the recorded amount of financial assets measured at fair value and
limited mutual funds participation unit for debt-based securities where the Net Asset Value “NAV” per share of the investments information is not published as explained below:
December 31, 2014 Fair value measurement at reporting date using
Quoted prices in active markets Significant
for identical other
Significant assets or observable
unobservable liabilities
inputs inputs
Balance level 1
level 2 level 3
Financial assets
Available-for-sale securities 254
52 202
- Fair value to profit or loss securities
Note 3b 290
- -
290
Total 544
52 202
290 December 31, 2013
Fair value measurement at reporting date using Quoted prices
in active markets Significant for identical
other Significant
assets or observable unobservable
liabilities inputs
inputs Balance
level 1 level 2
level 3 Financial assets
Available-for-sale securities 272
48 224
Fair value to profit or loss securities Note 3b
297 -
- 297
Total 569
48 224
297
