PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
130
42. FINANCIAL RISK MANAGEMENT continued
2. Fair value of financial assets and financial liabilities continued b. Classification and fair value continued
December 31, 2014 Other
Total Loans and Available for financial
carrying Fair
Trading receivables sale liabilities
amount value
Trade and other payables -
- -
12,476 12,476
12,476 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 -
- -
41,139 41,139
41,078
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
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
131
42. FINANCIAL RISK MANAGEMENT continued
2. Fair value of financial assets and financial liabilities continued c. Fair value hierarchy continued
Available-for-sale financial assets primarily consist of mutual funds, and Corporate and Government bonds. Corporate and Government bonds are stated at fair value by reference to
prices of similar securities at the reporting date. As they are not actively traded in an established market, these securities are classified as level 2.
Financial asset at fair value through profit or loss represents the Put Option on the 20 remaining ownership in Indonusa which was received as part of the divestment
considerations. Since the fair value is not observable and valuation technique is used to determine the fair value, this financial asset is classified as level 3.
Mutual funds actively traded in an established market are stated at fair value using quoted market price and classified within level 1. The valuation of the mutual funds invested in
Corporate and Government bonds and put option requires significant management judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term
nature of such assets. As these investments are subject to restrictions on redemption such as transfer restrictions and initial lock-up periods and observable activity for the investments is
limited, these investments are therefore classified within level 3 of the fair value hierarchy. Management considers, among other assumptions, the valuation and quoted price of the
arrangement of the mutual funds. Reconciliations of the beginning and ending balances for items measured at fair value using
significant unobservable inputs level 3 as of December 31, 2015 and 2014 are as follows:
2015 2014
Beginning balance 290
297 Unrealized loss - recognized in consolidated
statement of profit or loss and other comprehensive income
118 7
Ending balance 172
290
43. CAPITAL MANAGEMENT
The capital structure of the Group is as follows:
2014 2015
As restated Amount
Portion Amount
Portion
Short-term debts 602
0.55 1,810
1.98 Long-term debts
34,010 30.99
21,642 23.74
Total debts 34,612
31.54 23,452
25.72 Equity attributable to owners of
the parent company 75,136
68.46 67,721
74.28
Total 109,748
100.00 91,173
100.00
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
132
43. CAPITAL MANAGEMENT continued
The Group
