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1. General
1.a. The Company’s Establishment
PT Siloam International Hospitals Tbk (“the Company”) was established under the name of PT Sentralindo Wirasta on August 3, 1996 based on the Deed of Establishment No. 3, which was made in the presence of Myra Yuwono, S.H., a notary in Sukabumi. The deed of establishment was approved by the Minister of Justice of the Republic of Indonesia in his decree No. C2-8639.HT.01.01.TH.96 dated August 27, 1996 and was published in the State Gazette No. 97, Supplement No. 9518 on December 3, 1996.
The Company’s articles of association have been amended several times, and the latest was by Notarial Deed No. 2 dated May 2, 2014, made in the presence of Nurlani Yusup, S.H., M.Kn., a notary in Tangerang,
to change the Company’s articles of association one of them is the Company’s purpose and objective. The
change in articles of association was approved by the Minister of Law and Human Rights of the Republic of Indonesia in his decree No. AHU-02247.40.20.2014 dated May 5, 2014. Notification of changes the
Company’s articles of association have been received by the Minister of Law and Human Rights of the
Republic of Indonesia in his decree No. AHU-01691.40.21.2014 dated May 5, 2014.
In accordance with Article 3 of the Company's articles of association, the Company's principal activity is engage in healthcare provision, including setting up and managing hospitals, polyclinics, health facilities and supporting infrastructure, and engaging in government healthcare programs.
The Company commenced commercial operations in 2010 after the restructuring of PT Lippo Karawaci Tbk’s hospital units. The Company's principal activity is engage in healthcare provision, including setting up and managing hospitals. The operation of hospital units of the Company and the subsidiaries (the Group) are in several cities on the island of Sumatra, Java, Bali, Kalimantan, Sulawesi and Nusa Tenggara.
The Company’s head office is located at Siloam Hospital Lippo Village 5th Floor, Jl. Siloam No. 6, Lippo Village, Tangerang 15811, Banten - Indonesia. The parent entity of the Company is PT Megapratama Karya Persada and the ultimate parent entity is PT Lippo Karawaci Tbk.
1.b. The Company’s Initial Public Offering
The Company’s initial public offering of 156,100,000 shares was declared effective by the Indonesian
Financial Services Authority in its letter No. S-260/D.04/2013 dated September 2, 2013, and was listed in the Indonesian Stock Exchange on September 12, 2013.
1.c. The Group’s Structure
The Company has ownership of more than 50%, either direct or indirectly, in the following subsidiaries:
Domicile Main Direct Indirect Year of
Business Ownership Ownership Starting 2014 2013
Domicile Main Direct Indirect Year of
Business Ownership Ownership Starting 2014 2013
Percentage Percentage Operation Rp Rp
Domicile Main Direct Indirect Year of
Business Ownership Ownership Starting 2014 2013
Domicile Main Direct Indirect Year of
Business Ownership Ownership Starting 2014 2013
Percentage Percentage Operation Rp Rp Combination for Entities Under Common Control”. There was no net difference between the purchase price and the proportionate of stocks on net book value of assets of the subsidiary acquired.
On September 11, 2013, the Company acquired 99.90% ownership in PT Mahkota Buana Selaras (through direct ownership of 99.99% and 0.01% indirect ownership in PT Tunggal Pilar Sejahtera) at the acquisition cost of Rp600,000,000. The acquisition transactions were recorded in accordance with PSAK No. 38 (Revised
2012) “Business Combination for Entities Under Common Control”. There was no net difference between the
purchase price and the proportionate of stocks on net book value of assets of the subsidiary acquired. On November 26, 2013, TPP and MBS, acquired 99.99% and 0.01%, respectively, ownership in PT Koridor Usaha Maju (KUM) from PT Primakreasi Propertindo and PT Grand Villa Persada, at the acquisition cost of Rp599,999,000 and Rp 1,000, respectively. The acquisition transactions were recorded in accordance with
PSAK No. 38 (Revised 2012) “Business Combination for Entities Under Common Control”. There was no net
On December 6, 2013, TPP and MBS, acquired 75% and 25%, respectively, ownership in PT Gramari Prima Nusa (GPN), at the acquisition cost of Rp750,000,000 and Rp250,000,000, respectively. At the acquisition date, GPN had not yet started operations and therefore, it was recorded as an asset acquisition.
Based on the deed Nos. 65, 66 and 67 on December 13, 2013 made in presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang, KUM acquired 80% ownership in PT Medika Sarana Traliansia (MST), at the acquisition cost of Rp189,600,000. This transaction represent business combination (see Note 29). MST commenced commercial operations in 2008. MST had ownership 99.99% of PT Trisaka Raksa Waluya. TRW commenced commercial operations in 2008.
On July 26, 2014, TPP and MBS, acquired 75% and 25%, respectively, ownership in PT Rashal Siar Cakra Medika (RSCM), at the acquisition cost of Rp78,540,426,657 and Rp26,180,142,219, respectively. This transaction represent business combination (see Note 29). RSCM commenced commercial operations in 2008.
On November 28, 2014, TPP acquired 20% ownership of MST from Steer Clear Limited, at the acquisition cost of Rp45,030,000,000. Difference from acquisition cost and investment value amounted to Rp25,748,354,393.
1.d. Board of Commissioners, Directors, Employees and Audit Committee
Based on Notarial Deed No. 2 dated May 2, 2014, made in the presence of Nurlani Yusup, S.H., M.Kn., notary in Tangerang, which has been accepted by the Ministry of Law and Human Rights of the Republic of Indonesia through notification No. AHU-02247.40.20.2014 dated May 5, 2014, Notarial Deed No. 369 dated April 24, 2013, made in the presence of Dr. Irawan Soerodjo, S.H, M.Si, notary in Jakarta, which has been accepted by Ministry of Law and Human Rights of the Republic of Indonesia through notification No. AHU-AH.01.10-15919 dated April 26, 2013, the composition of the Board of Commisioners and Directors as of December 31, 2014 and 2013, are as follows:
2014 2013
Board of Commissioners
President Commissioner Ketut Budi Wijaya Ketut Budi Wijaya
Commissioner Theo Leo Sambuaga Theo Leo Sambuaga
Rahmawaty Agus Benjamin
Lambock V. Nahattands
Independent Commissioner Farid Harianto Farid Harianto
Muladi Muladi
Jonathan Limbong Parapak Jonathan Limbong Parapak
Directors
President Director Romeo Fernandez Lledo *) Gershu Chandy Paul
Director Grace Frelita Indradjaja Grace Frelita Indradjaja
Andry Sugianganto Budisuharto
Kailas N. Raina Romeo Fernandez Lledo
George Mathew George Mathew
Anang Prayudi *) Anang Prayudi *)
*) Unaffiliated Director
The audit committee composition as of December 31, 2014 and 2013 are as follows:
Audit Committee
Chairman Farid Harianto
Members Lie Kwang Tak
Siswanto Pramono
As of December 31, 2014, the Company’s Corporate Secretary is Sugianganto Budisuharto and head of internal audit is Gunawan HP.
2. Summary of Significant Accounting Policies
2.a. Compliance with the Financial Accounting Standards
The Group’s consolidated financial statements have been prepared and presented in accordance with the
Indonesian Financial Accounting Standards which include the Statements and the Interpretations as issued by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (DSAK-IAI) and Regulation of Bapepam-LK No. VIII.G.7 regarding the “Guidance of Financial StatementsPresentation” asset forth in decree No. KEP-347/BL/2012 regarding the amendment to Regulation No. VIII.G.7 and other accounting policies which prevailing in the Capital Market.
2.b. Basis of Measurement and Preparation of Consolidated Financial Statements
The consolidated financial statements have been prepared on a going concern assumption and on the accrual basis, except for the consolidated statements of cash flows which used the cash basis. The basis of measurement in the preparation of these consolidated financial statements is the historical cost principle, except for certain accounts that were measured using other basis, as described in the respective accounting policy.
The consolidated statements of cash flows have been presented by classifying the activities into operating, investing and financing. The cash flows from operating activities were prepared using the direct method. The functional currency of the Group is Indonesian Rupiah. Transactions are recorded using the functional currency. The reporting currency used in the preparation of these consolidated financial statements is the Indonesian Rupiah.
New accounting standard or improvement on accounting standard which is relevant to the Group and mandatory for the first time for the financial period beginning 1 January 2014 is ISAK No. 27 “Transfer of Assets from Customers”and ISAK No. 28 “Termination of Financial Liabilities with Equity Instruments”. Meanwhile, revocation of ISAK No. 27, “Transfer of Assets from Customers”and ISAK No. 28 “Extinguishing
of Financial Liabilities with Equity Instruments” with an effective date of 1 January 2014 is not relevant, and
did not result in changes to the Company's accounting policies and had no effect on the amounts reported for the current period or prior financial years.
2.c. Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its subsidiaries controlled directly with the percentage of ownership more than 50% as presented in Note 1.c.
Control also exists when the parent entity owns half or less of the voting power of an entity when there is: a. power over more than half of the voting rights by virtue of an agreement with other investors;
b. power to govern the financial and operating policies of the entity under a statute or an agreement; c. power to appoint or remove the majority of the members of the board of directors or equivalent governing
body and control of the entity is by that board or body; or
d. power to cast the majority of votes in the meetings of the board of directors or equivalent governing body and control of the entity is by that board or body.
The existence and effect of potential voting rights that can be implemented or converted on the date of the reporting period should be considered when assessing whether an entity has the power to govern financial and operating policies of another.
The consolidated financial statements have been prepared on the basis of entity concept. All significant related intercompany accounts, transactions and profits among the consolidated companies have been eliminated to reflect the financial position and result of operations as a whole entity.
The changes in the Company’s ownership interest in a subsidiary that do not result to a loss of control are
accounted for as equity transactions and attributed to the owners of the parent.
All major transactions and inter-company account balances (including significant unrealized gain or loss) have been eliminated.
Non-controlling interest reflects the profit or loss and net assets of subsidiaries portion that are not attributable directly or indirectly to the parent entity, which is presented in the consolidated statements of comprehensive income and as equity in the consolidated statements of financial position, separated from portion which is attributable to parent.
2.d. Foreign Currency Transactions
A foreign currency is a currency other than the functional currency. Transactions during the current year using foreign currencies were recorded at the spot rate prevailing on the transaction date.
At the reporting date, transactions in foreign currencies were translated using the following closing rates:
2014 2013
Rp Rp
1 United State Dollar (USD) 12,440 12,189
1 Euro (EUR) 15,133 16,821
1 Singapore Dollar (SGD) 9,422 9,628
1 Australian Dollar (AUD) 10,218 10,876
Gains and losses from foreign exchange differences arising from foreign currency transactions into Rupiah were charged to profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of transaction. Non-monetary items that are measured at fair value in a foreign currency shall be translated using the exchange rate when the fair value was determined.
2.e. Cash and Cash Equivalent
Cash consist of cash on hand and in banks, are not used as collateral and not restricted.
Cash equivalent consists of time deposits certificates with maturities of not more than or equal to three (3) months from the date of placement and are not restricted.
2.f. Transactions with Related Parties
A related party is a person or entity that is related to the Company (referred to as the “reporting entity”), which includes:
a) A person or a close member of that person’s family is related to a reporting entity if that person: (i) has control or joint control over the reporting entity;
(ii) has significant influence over the reporting entity;
(iii)is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
b) An entity is related to the reporting entity if any of following conditions applies:
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member);
(iii)Both entities are joint ventures of the same third party;
(iv)One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v)The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity
or an entity related to the reporting entity. If the reporting entity is managing the plan, the sponsoring entity is also related to the reporting entity;
(vi)The entity is controlled or jointly controlled by a person identified in (a); or
(vii)A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or a parent of the entity).
2.g. Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is determined by the average method. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling cost. In determining obsolete inventory, the Group conducts a regular review of each unit individually significant inventory and when obtained reliable evidence, the Group will reduce the value of inventories to realizable value.
2.h. Prepaid Expenses
Prepaid expenses are amortized over the period benefitted using straight line method.
2.i. Property and Equipment
At initial recognition, property and equipment are measured at acquisition cost.
After initial recognition, property and equipment except land are accounted for using the cost model which is carried at cost less accumulated depreciation and accumulated impairment losses. Land is not depreciated and carried at cost less accumulated impairment losses.
Depreciation is computed by using the straight line method based on the estimated useful lives of the assets as follows:
Years
Building, Infrastructure and Renovations 4 - 20
Equipment and Medical Supplies 4 - 8
Furniture, Fixtures and Office Equipment 4 - 10
Vehicles 5
The cost of repairs and maintenance is charged to profit or loss as incurred while significant renovations and addition which add estimated useful life or future economic benefits are capitalized. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation and accumulated impairment loss, if any, are removed from the accounts and any resulting gains or losses are charged to operations for the relevant year.
Accumulated construction costs of property and equipment are capitalized as "Construction in Progress " and recorded in "property and equipment" account until the construction process is completed. These costs are reclassified to property and equipment when the construction are completed.
Management has reviewed the estimated useful lives, depreciation methods and residual values of the propery and equipment, at each reporting year. Necessary adjustments made prospectively.
2.j. Leases
The determination of whether an arrangement is a lease agreement or lease agreement containing the substance of the agreement based on the inception date and whether the fulfillment of the agreement depends on the use of an asset and the agreement provides a right to use the asset.
Leases are classified as finance leases if the lease substantially transferred all the risks and benefits related to ownership of the asset. Leases are classified as operating leases if the lease did not substantially transfer all the risks and benefits related to ownership of the asset.
Group as Lessee
At the beginning of the lease term, the Group recognizes finance leases as assets and liabilities in the consolidated statements of financial position at fair value of the leased property or the present value of the minimum lease payments, if the present value is lower than the fair value. The valuation of a lease is determined at the initial contract. The discount rate used in calculating the present value of the minimum lease payments is the implicit interest rate of the lease, if practicable. If not, the discount rate used is the level of the lessee's incremental borrowing rate applied. Initial direct costs of the lessee are capitalized and recognized as an asset. Leased asset depreciation policy is consistent with the policy for the Group’s own property and equipment.
Under an operating lease, the Group recognizes lease payments as an expense on a straight-line basis over the lease term.
Group as lessor
The Group recognizes lease receivables in the consolidated statements of financial position as a net lease investment. Collection of leases are considered as payments of lease principal and finance lease income. Recognition of finance lease income is based on a pattern reflecting a constant periodic rate of return on the Group's net investment as lessor in a finance lease.
The Group is required to present assets subject to operating leases in its consolidated statements of financial position according to the nature of the asset. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as operating rental income. Contingent rents, if any, are recognized as revenue in the periods in which they are earned. Lease income from operating leases is recognized as income on a straight-line basis over the lease term.
Sale and Leaseback
A sale and leaseback transaction involves the sale of an asset and leasing back the same asset. If a sale and leaseback transaction is a finance lease, any excess of sales proceeds over the carrying value is not immediately recognized as income in the consolidated financial statements of a seller (lessee) but is deferred and amortized over the lease period.
2.k. Impairment of Non-Financial Assets
The recover amount of non-financial assets shall be estimated at the time of the events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognized in the current year.
Impairment loss been recognized in prior periods is reversed if and only if, there is a change in the estimate used to determine the assets recoverable amount since the last impairment loss is recognized. If so, the carrying amount of the asset is increased to its recoverable amount.
The increase is a reversal of an impairment loss. The carrying amount of assets increased due to the reversal of an impairment loss, should not exceed the carrying amount of the asset if no impairment loss for the previous period.
2.l. Business Combination
The Group accounts for each business combination by applying the acquisition method, including measuring non-controlling interest.
The consideration transferred for an acquisition is measured at the aggregate of the fair values of assets given-up, liabilities assumed and equity instruments issued by the Company. Acquisition-related costs are recognized in the profit or loss as incurred.
The Group recognizes the identifiable assets acquired and liabilities taken over at their fair value on the acquisition date, except for the following:
Deferred tax assets or liabilities that are related to assets acquired and liabilities taken over in business combination are recognized and measured in accordance with PSAK No. 46 (Revised 2010), “Income
Taxes”.
Liabilities (or assets, if any) related to employee benefit arrangements from the acquiree are recognized and measured in accordance with PSAK No. 24 (Revised 2010), “Employee Benefits”.
Liabilities or equity instruments related to the replacement of an acquiree’s share-based payment awards
are measured in accordance with PSAK No. 53 (Revised 2010), “Share-based Payment”.
Non-current assets (or disposal groups) acquired which are classified as held for sale are measured in accordance with PSAK No. 58 (Revised 2009), “Non-current Assets Held for Sale and Discontinued
Operations”.
2.m.Intangible Assets
Goodwill
Goodwill arising in a business combination is recognized as an asset on the date that control is acquired. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
noncontrolling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in
the acquiree over the net of the acquisition date amounts of the identifiable assets acquired and the liabilities taken over.
If goodwill has been allocated to a cash-generating unit and certain operations on the cash-generating unit is stopped, the goodwill associated with discontinued operations are included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill removed is measured based on the relative value of discontinued operations and share of the cash-generating unit retained.
Cost of Software
Software costs are initially recognized at cost or amounts attributable to the assets at the time of acquisition. Acquisition cost of accounting software is deferred and amortized using the straight line method based on the estimated economic useful life of five (5) years.
2.n. Employee Benefits
Short-term employee benefits
Short-term employee benefits are recognized as wages and salaries for rendered services to the Company during the accounting period.
Post-employment Benefits
The Group has a defined benefit pension plan without funding for all its permanent employees and have computed and recorded a provision for employee post-employment benefits in accordance with the Labour Law No. 13/2003 and PSAK No. 24 (Revised 2010), "Employee Benefits".
Post-employment benefits are recognized at a discounted amount when the employees have rendered services to the company during the accounting period. Liabilities and expenses are measured using actuarial techniques which include constructive obligation that arises from the Group’s common practices. In calculating such liabilities, the benefit must be discounted using the projected unit credit method. Past service cost is recognized in profit or loss when the benefit becomes vested and recognized as an expense using the straight-line method for the average period of vested benefit. Accumulated unrecognized actuarial gain (loss) that is more than 10% of the present value of defined benefit liabilities are amortized using the straight line method over the remaining projected average service period of employees in the programme.
2.o. Difference in Value between Entities Under Common Control
Transactions business combination between entities under common control, such as transfers of assets, liabilities, shares or other ownership instruments by re-organizing entities within the same group, do not represent changes of ownership in terms of economic substance, and thus, should not result in a gain or loss for the group of companies as a whole or for the individual entity in the groups.
Since transactions with entities under common control do not result in changes in term of economic substance of ownership in transferred assets, liabilities or other ownership instruments, the transferred assets or liabilities (in legal form) should be recorded at book value in a manner similar to business combination transactions using the pooling of interest method.
The difference between transfer price and book value does not represent goodwill. Such difference is recorded in the account “Difference in Value from Restructuring Transactions between Entities under
Common Control” and is presented in additional paid in capital as part of equity and can not be recognized as
realized gain nor loss is reclassified to retained earning.
2.p. Revenue and Expense Recognition
Revenue is recognized when medical services are rendered or when medical supplies are delivered to patients.
2.q. Income Tax
Current income tax is calculated from taxable income, the earnings that have been adjusted to the appropriate tax rules.
Amendments to taxation liabilities are recorded when an assessment is received or, if appealed against, when the results of the appeal are determined.
Current tax assets and current tax liabilites are offset if, and only if, the entity: 1) has a legally enforceable right to set off the recognised amount; and
2) intends to settle in net basis, or realises and settles the asset and liability simultaneously.
All temporary differences between the tax bases of assets and liabilities and their carrying value for financial reporting purposes are recognized as deferred tax using the balance sheet liability method. Currently or substantially enacted tax rates are used to determine deferred income tax.
Deferred tax assets and deferred tax liabilites are offset if, and only if, the entity:
1) has a legally enforceable right to set off current tax asset against current tax liability; and
2) the deferred tax asset and the deferred tax liability relate to income taxes levied by the same tax authority on the same taxable entity.
2.r. Financial Instruments
Financial Assets
The Group classified its financial assets into four (4) categories, as follows (i) financial assets measured at fair value through profit or loss (FVTPL), (ii) loans and receivables, (iii) held-to-maturity financial assets (HTM financial assets) and (iv) available-for-sale financial assets (AFS financial assets). The classification depends on the purpose for which the financial assets were acquired. The management determines the classification of its financial assets at initial recognition.
(i) Financial Assets at FVTPL
Financial assets which are recognized as FVTPL are financial assets for trading. Assets are classified in this category when they are held principally for the purpose of selling or repurchasing in the near term and there is evidence of a recent actual pattern of short-term profit taking. Derivatives are classified as trading assets, except when designated and effective as hedging instruments
At initial recognition, financial assets are measured at fair value through profit or loss are recognized at fair value. Transaction costs in connection with the acquisition are recognized in profit or loss for the year. The increase or decrease in fair value recognized in profit or loss subsequently.
(ii) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are initially recognized at fair value plus transaction costs and are subsequently measured at amortized cost using the effective interest rate method.
(iii)HTM Financial Assets
HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that management has the positive intention and ability to hold to maturity, other than:
a. Investments which from initial recognition, were designated as financial assets measured at FVTPL; b. Investments which are designated as available-for-sale; and
c. Investments that meet the definition of loans and receivables.
(iv)AFS Financial Assets
AFS financial asset are non-derivative financial assets that are held during a certain period with the intention for sale in order to fulfill liquidity needs, changes in interest rates or foreign exchange, or those that are not classified as loans and receivables, investments that are classified as held-to-maturity or financial assets at fair value through profit or loss.
At initial recognition, available for sale financial assets are recognized at fair value plus transaction costs and subsequently measured at fair value with any gain or loss recognized as other comprehensive income, except for impairment loss and foreign exchange, until the derecognition of the financial assets.
Financial Liabilities and Equity Instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of financial liabilities and equity instruments.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recorded as the proceeds received, net of direct issue costs. Share issuance costs are presented as part of equity under "Additional Paid-in Capital – Net”.
Financial Liabilities
Financial liabilities are classified into the categories of (i) financial liabilities measured at fair value through profit or loss (FVTPL) and (ii) financial liabilities measured at amortized cost.
(i) Financial liabilities measured at FVTPL
Financial liabilities at fair value through profit or loss are the financial liabilities that are designated for trading. Financial liabilities are classified for trading if acquired primarily for the purpose of selling or repurchasing in the near term and there is evidence of a pattern of short-term profit taking. Derivatives are classified as trading liabilities except those effectively designated as hedging instruments. At initial recognition, financial liabilities measured at amortized cost are recognized at fair value net of transaction costs and subsequently measured at amortized cost using the effective interest rate.
(ii) Financial Liabilities Measured at Amortized Cost
Financial liabilities not classified as financial liabilities at fair value through profit or loss are categorized and measured using amortized cost.
At initial recognition, financial liabilities measured at amortized cost are recognized at fair value net of transaction costs and subsequently measured at amortized cost using the effective interest rate method.
Impairment of Financial Assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the fair value of the equity investment below its cost is considered to be an objective evidence of impairment.
it becoming probable that the borrower will enter bankruptcy or financial reorganization.
For certain categories of financial assets, such as receivables, the impairment value of assets are assessed individually. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period and observable changes in the national or local economic conditions that correlate with default on receivables
For financial assets carried at amortized cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
The carrying amount of the financial asset is directly reduced by the amount of impairment loss for all financial assets with the exception of receivables, where the carrying amount is reduced through the use of an allowance account. When a receivable is considered uncollectible, it is written-off against the allowance account. Subsequent recoveries of amounts previously written-off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in the profit or loss.
When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognized in equity are reclassified to the profit or loss.
With the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment on the date of the impairment is reversed does not exceed the amortized cost had there been no impairment recognized.
In respect of AFS equity securities, impairment losses previously recognized in the consolidated statement of comprehensive income are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognized directly in equity.
Reclassification of Financial Assets
Reclassification is only permitted in rare circumstances and where the asset is no longer held for the purpose of selling in the short-term. In all cases, reclassification of financial assets is limited to debt instruments. Reclassifications are accounted for at the fair value of the financial asset on the date of reclassification.
Offsetting of Financial Instruments
Financial assets and liabilities are offset and the net amount is reported in the consolidated statements of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
Derecognition of Financial Assets and Liabilities
The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes their retained interest in the asset and an associated liability for the amounts they may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired.
Effective Interest Method
The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and others paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or, where appropriate, a shorter period to the net carrying amount on initial recognition. Income is recognized on an effective interest basis for financial instruments other than those financial instruments at FVTPL.
Fair Value Determination
The fair value of financial assets and liabilities must be estimated for recognition and measurement or for disclosure purposes.
PSAK No. 60, “Financial Instruments: Disclosures” requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:
(i) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
(ii) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2), and
(iii)inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid price, while ask price is used for financial liabilities. These instruments are included in Level 1.
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as minimum as possible on estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. This is the case for unlisted equity securities.
2.s. Earnings Per Share
Earnings per share is computed by dividing income attributable to the parent by the weighted average number of common shares outstanding during the year.
Diluted earnings per share is computed considering other securities that potentially have a dilutive effect to ordinary shares outstanding during the reporting year.
2.t. Operating Segments
Operating segments are identified based on internal reports on components of the Group that are regularly reviewed by the "operational decision maker" in allocating resources and assessing performance of the operating segments.
The Group evaluates operating segments based on the business activities of each hospital unit which is a strategic unit that promote products and services in different service areas. Products and services are managed separately because each unit hospital requires different market strategies and resources. Segment accounting policies are the same as described in the summary of significant accounting policies.
2.u. Significant Accounting Estimation and Justification
The preparation of the consolidated financial statements in accordance with the Indonesian Financial Accounting Standards requires the management to make assumptions and estimates that could affect the carrying amounts of certain assets and liabilities at end of reporting year.
In the preparation of these consolidated financial statements, accounting assumptions have been made in the process of applying accounting policies that may affect the carrying amounts of assets and liabilties in the consolidated financial statements. In addition, there are accounting assumptions about the sources of estimation uncertainty at end of reporting period that could materially affect the carrying amounts of assets and liabilities in the subsequent reporting year.
The management periodically reviews them to ensure that the assumptions and estimates have been made based on all relevant information available on the date in which the consolidated financial statements have been prepared. Because there is inherent uncertainty in making estimates, the value of assets and liabilities to be reported in the future might differ from those estimates.
i. Significant Accounting Estimations and Justification
At the reporting date, the management has made significant assumptions and estimates which have the most significant impact to the carrying amount recognized in the consolidated financial statements are as follows:
Allowance for Impairment of Accounts Receivable
In general, the management analyzes the adequacy of the allowance for impairment based on several data, which include analyzing historical bad debts, the concentration of each customer's trade receivables, credit worthiness and changes in a given period of repayment. The analysis is carried out individually on a significant amount of accounts receivable, while the insignificant group of trade receivables is carried on the collective basis. At the reporting date, the carrying amount of trade receivables has been reflected at fair value and the carrying value may change materially in the subsequent reporting period. The change, however, will not be attributable to the assumptions and estimates made as of this reporting date (see Note 4).
Deferred Tax Assets Estimation
Recognition of deferred tax assets is performed only if it is probable that the asset will be recovered in the form of economic benefits to be received in future periods, in which the temporary differences and tax losses can still be used. Management also considers the future estimated taxable income and strategic tax planning in order to evaluate its deferred tax assets in accordance with applicable tax laws and its updates. As a result, related to its inherent nature, it is likely that the calculation of deferred taxes is related to a complex pattern where assessment requires a judgment and is not expected to provide an accurate calculation. Estimated Deferred tax disclose to the Note 7.d.
Estimated Useful Lifes of Property and Equipment
Management makes a periodic review of the useful lifes of property and equipment based on several factors such as physical and technical conditions and development of medical equipment technology in the future. The results of future operations will be materially influenced by the change in estimate as caused by changes in the factors mentioned above. Changes in estimated useful life of property and equipment, if any, are prospectively treated in accordance with PSAK No. 25 (Revised 2010), “Accounting Policies, Changes in
Post-employment Benefits
The present value of post-employment benefits obligation depends on several factors that are determined on an actuarial basis based on several assumptions. Assumptions used to determine the cost (income) include the discount rate. Changes in these assumptions will affect the carrying amount of post-employment benefits. The Group determines the appropriate discount rate at the end of the reporting period by the interest rate used to determine the present value of future cash outflows expected to settle an estimated obligation. In determining the appropriate level of interest rates, the Group considers the interest rate of government bonds denominated in Rupiah that have a similar period to the corresponding period of the obligation.
Another key assumption is partly determined by current market conditions during the period in which the post-employment benefits is resolved. Changes in the employee benefits assumption will impact recognition of actuarial gains or losses at the end of the reporting period. Information about assumtion and balance of liability and post employment benefits expense disclose to the Note 19.
Fair Value of Financial Instruments
When the fair value of financial assets and liabilities recorded in the consolidated statements of financial position is not available in an active market, it is determined using valuation techniques including the use of mathematical models. Input for this model is derived from observable market data through the data available. When observable market data is not available, management judgment is required to determine the fair value. Such considerations include liquidity and volatility feedback model for derivative transactions and long-term discount rates, prepayments, and default rate assumptions. Fair value of financial instruments disclose to the Note 32.
ii. Significant Consideration in the Determination of Accounting Policies
The following considerations made by management in the application of accounting policies that have significant effect on the amount presented in the financial statements:
Revenue Recognition – Doctors Fee
3. Cash and Cash Equivalents
2014 2013
Rp Rp
Cash on Hand 4,686,173,378 4,613,913,629
Cash in Banks Related Party
Rupiah
PT Bank Nationalnobu Tbk 28,610,235,853 223,200,570,371
Third Parties
Rupiah
PT Bank Negara Indonesia (Persero) Tbk 64,786,797,252 55,026,324,173
PT Bank Central Asia Tbk 26,979,098,279 10,974,569,197
PT Bank CIMB Niaga Tbk 23,952,651,436 16,380,733,527
PT Bank Mandiri (Persero) Tbk 16,847,350,898 14,113,438,678
PT Bank Rakyat Indonesia (Persero) Tbk 3,125,898,534 18,627,512,852
Others (below Rp1 billion each) 1,505,945,728 1,832,686,779
Foreign Currencies SGD
PT Bank CIMB Niaga Tbk 36,742,787,678 75,301,799,681
PT Bank International Indonesia Tbk 3,060,587,810 3,164,074,460
USD
PT Bank ANZ Indonesia 9,572,022,812 2,086,378,332
PT Bank Negara Indonesia (Persero) Tbk 1,594,322,497 2,069,938,234
Others (below Rp1 billion each) 438,730,064 773,397,265
EURO
PT Bank ANZ Indonesia 2,679,901,063 1,433,499,312
Others (below Rp1 billion each) 1,769,016,147 529,601,289
AUD
PT Bank ANZ Indonesia 4,086,002,246 1,759,399,666
Subtotal 225,751,348,297 427,273,923,816
Time Deposits - Third Parties
Rupiah
PT Bank CIMB Niaga Tbk 43,570,717,986 19,900,000,000
PT Bank Mandiri (Persero) Tbk 5,900,530,387 2,600,000,000
PT Bank Negara Indonesia (Persero) Tbk 50,000,000 61,050,000,000
Subtotal 49,521,248,373 83,550,000,000
Total 279,958,770,048 515,437,837,445
Interest rates and maturity period of the time deposits are as follows:
2014 2013
Rupiah
Annual Contractual Interest Rates 4% - 10% 4.25 % - 7.75 %
Maturity Period 30 Days 5 - 30 Days
4. Trade Receivables
2014 2013
Rp Rp
Related Parties (see Note 10) 3,549,747,601 2,432,208,891
Third Parties
Enterprise 362,159,592,394 251,060,097,452
Individual 21,979,027,324 17,405,834,003
Credit Card 12,149,167,644 4,563,215,001
Others (below Rp500 million each) 7,363,001,809 4,075,353,271
Subtotal 403,650,789,171 277,104,499,727
Less: Allowance for Impairment losses (14,554,118,385) (8,734,468,948)
Trade Receivables - Third Parties - Net 389,096,670,786 268,370,030,779
Net 392,646,418,387 270,802,239,670
The movements in allowance for impairment losses are as follows:
2014 2013
Rp Rp
Third Parties
Beginning Balance 8,734,468,948 6,167,375,415
Addition 6,275,399,274 2,675,109,173
Reversal (455,749,837) (108,015,640)
Ending Balance 14,554,118,385 8,734,468,948
All trade receivables are denominated in Rupiah.
Trade receivables of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loans obtained from PT Bank Central Asia Tbk (see Note 17).
Based on management’s review of the individual account of the trade receivables at the end of the reporting date,
there were impairment on certain trade receivables. Management has provided adequate allowance for impairment losses based on the Group's accounting policies.
Management believes that the allowance was made because the receivables cannot be collected and is adequate to cover possible losses from uncollectible accounts.
5. Other Current Financial Assets
2014 2013
Rp Rp
Other Current Financial Assets - Third Parties
Rental Receivables 4,620,197,836 2,978,977,233
Others (below Rp1 million each) 4,814,928,806 164,302,523
Total 9,435,126,642 3,143,279,756
As of December 31, 2014 and 2013, the Group did not provide allowance for impairment losses on the receivables because management believes that all receivables are collectible.
6. Inventories
2014 2013
Rp Rp
Medicine 55,372,035,426 54,556,306,252
Medical Supplies 45,608,886,699 36,109,123,363
Others 4,876,961,839 4,165,652,167
Total 105,857,883,964 94,831,081,782
The Group’s inventory have been insured againts all forms of risk by PT Lippo General Insurance Tbk, a related party, amounting to Rp144,482,221,851 and Rp89,861,151,450 as of December 31, 2014 and 2013, respectively. The management believes that insurance coverage is adequate to cover possible losses of the insured assets. The medicine and consumable goods of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loans obtained from PT Bank Central Asia Tbk (see Note 17).
The amount of inventories charged to cost of sales for the years ended December 31, 2014 and 2013 amounted to Rp785,636,868,503 and Rp621,277,034,539, respectively (see Note 26).
The management believes that there is no indication of impairment of inventory as of December 31, 2014.
7. Taxes
a. Prepaid Tax
This account represent prepaid income tax article 28.A amounting to Rp6,991,423,747 as of December 31, 2014.
b. Taxes Payable
2014 2013
Rp Rp
Income Tax
Article 4 (2) 1,125,399,126 1,178,537,667
Article 21 15,285,439,574 8,544,162,861
Article 23 360,508,411 481,518,681
Article 26 1,179,920 5,023,491
Article 25/29
The Company 2,020,164,583 2,592,436,340
Subsidiaries 13,901,085,091 3,894,560,892
Value Added Tax 436,917,072 287,642,701
Total 33,130,693,777 16,983,882,633
c. Taxes Expense (Benefit)
The Company Subsidiaries Consilidated The Company Subsidiaries Consilidated
Rp Rp Rp Rp Rp Rp
Current Tax Expense 17,219,496,560 18,510,312,635 35,729,809,195 24,241,975,000 -- 24,241,975,000
Deferred Tax Expense (Benefit) (1,203,555,313) (727,089,912) (1,930,645,225) (762,211,661) (1,911,102,072) (2,673,313,733)
Consolidated Tax Expense (Benefit)-Net 16,015,941,247 17,783,222,723 33,799,163,970 23,479,763,339 (1,911,102,072) 21,568,661,267
2014 2013
Current Tax
The calculation of estimated current tax expense and corporate income tax payable of the Company are as follows:
2014 2013
Rp Rp
Profit Before Tax as
Consolidated Statements of Comprehensive Income 93,505,936,951 71,761,148,171
Less: Loss Before Tax of Subsidiaries (29,343,309,291) (22,203,646,514)
Profit Before Tax of the Company 64,162,627,660 93,964,794,685
Timing Differences:
Employee Benefits 19,267,793,137 15,839,117,682
Allowance for Impairment Losses 1,054,104,077 400,890,954
Depreciation and Amortization Charges (15,507,675,962) (23,797,538,635)
4,814,221,252 (7,557,529,999)
Permanent Differences:
Deferred Charge 10,446,670,224 12,320,059,670
Salary and Allowances Employees 4,075,644,094 10,243,834,003
Entertainment and Donation 1,181,256,125 1,056,939,358
Income Already Subjected to Final Tax (3,524,678,002) (4,410,470,690)
Interest Income already Subjected to Final Tax (12,222,955,246) (8,649,726,336)
Others (54,799,867)
--(98,862,672) 10,560,636,005
Estimated Taxable Income 68,877,986,240 96,967,900,000
Estimated Current Taxes - the Company 17,219,496,560 24,241,975,000
Less: Prepayments of Income Tax Article 25 (24,210,920,307) (23,659,351,680)
Estimated Corporate Tax Payable (Prepaid tax article 28) (6,991,423,747) 582,623,320
Until the reporting date, the Company has not submitted the Annual Tax Return (SPT) for the year 2014 to the tax office. Taxable income, estimated current taxes and corporate tax payable for the year 2013 is consistent with the SPT submitted by the Company to the tax office for the year 2013.
A reconciliation between profit before tax expense as presented in the consolidated statements of comprehensive income with the total consolidated tax expense is as follows:
2014 2013
Rp Rp
Profit before Tax as Presented in the Consolidated
Statements of Comprehensive Income 93,505,936,951 71,761,148,171
Less: Loss before Tax of Subsidiaries (29,343,309,291) (22,203,646,514)
2014 2013
Rp Rp
Current Prevailing Tax Rate 25% 16,040,656,915 23,491,198,671
Deferred Charge 2,611,667,556 3,080,014,918
Salary and Allowances Employees 1,018,911,024 2,560,958,501
Entertainment and Donation 295,314,031 264,234,840
Correction and Recovery of Deferred Tax -- (2,651,594,334)
Income Already Subjected to Final Tax (881,169,501) (1,102,617,673)
Interest Income already Subjected to Final Tax (3,055,738,812) (2,162,431,584)
Others (13,699,966) --
Total Tax Expenses of the Company 16,015,941,247 23,479,763,339
Current Tax Expenses - Subsidiaries 18,510,312,635
--Deferred Tax Benefit - Subsidiaries (187,379,961) (1,911,102,072)
Deferred Tax Benefit on Increasing Fair Value of
Property and Equipment of subsidiary aqcuisition (539,709,951) --
Total Consolidated Tax Expenses 33,799,163,970 21,568,661,267
d. Deferred Tax
Employee Benefits 19,317,307,583 4,816,948,284 -- 24,134,255,867
Depreciation of Property and Equipment (5,949,384,660) (3,876,918,991) -- (9,826,303,651) Allowance for Impairment Losses 1,056,097,167 263,526,020 -- 1,319,623,187
14,424,020,090
762,211,661 -- 15,627,575,403
Subsidiaries 4,557,581,123 2,257,765,804 -- 6,815,346,927
Total Deferred Tax Assets 16,308,287,480 2,673,313,733 -- 22,442,922,330
Deferred Tax Liability - Subsidiaries (11,983,104,371) (1,530,675,892) (14,634,088,703) (28,147,868,966)
2012 Charged Deferred Tax 2013
Employee Benefits 15,357,528,163 3,959,779,420 -- 19,317,307,583
Depreciation of Property and Equipment (2,651,594,162) (3,297,790,498) -- (5,949,384,660) Allowance for Impairment Losses 955,874,428 100,222,739 -- 1,056,097,167
13,661,808,429
762,211,661 -- 14,424,020,090
Subsidiaries 2,646,479,051 1,911,102,072 -- 4,557,581,123
Total Deferred Tax Assets 16,308,287,480 2,673,313,733 -- 18,981,601,213
Deferred Tax Liability (6,653,250,000) -- (5,329,854,371) (11,983,104,371)
8. Prepaid Expenses
2014 2013
Rp Rp
Rental 36,073,984,961 17,127,815,179
Advertising 3,543,804,853 1,283,265,903
Insurance 2,463,613,449 2,365,595,628
Others (below Rp500 million each) 3,826,344,612 2,473,556,926
Total 45,907,747,875 23,250,233,636
Prepaid rent mainly relates to the lease of the land and building of Siloam Hospitals Lippo Cikarang from PT Graha Pilar Sejahtera and lease of Siloam Cinere Hospital to PT Anadi Sarana Tatahusada (see Note 35.a) and the lease of land PT Buana Utama Sejati to I Wayan Buana Partha and I Nyoman Ada.
9. Advances
2014 2013
Rp Rp
Advances for Purchase of Property and Equipment 52,507,590,784 29,319,002,322
Construction 17,892,758,610 18,852,487,557
Others (below Rp500 million each) 14,224,115,574 12,410,384,073
Total 84,624,464,968 60,581,873,952
Advances for purchase of property and equipment mainly represent the purchase of medical equipment for Siloam Hospitals Lippo Village, Siloam Hospitals TB Simatupang, Siloam Hospitals MRCCC and Siloam Hospitals Kupang. Advances for construction represent downpayment to suppliers related to the hospitals renovation.
10. Transactions with Related Parties
In its normal business transactions, the Company conducts business transactions with related parties as follows:
2014 2013 2014 2013
Rp Rp % %
Cash and Cash Equivalent
PT Bank Nationalnobu Tbk 28,610,235,853 223,200,570,371 1.01 8.58
Trade Receivables
Non-employee 3,549,747,601 2,432,208,891 0.12 0.09
Due from Related Parties Non-Trade
Other (below Rp1 billion each) 1,341,961,213 515,189,971 0.05 0.02
Percentage to Total Assets/Liabilities
Accrued Expense
2014 2013 2014 2013
Rp Rp % %
Percentage to Total Liabilities/ Operating Expenses
Due to Related Parties Non-Trade
PT Lippo Karawaci Tbk 415,006,106,981 387,074,492,750 34.86 40.25
Other (below Rp1 billion each) 807,561,568 -- 0.00
--Total 415,813,668,549 387,074,492,750 34.86 40.25
Employee Benefit for Key Management Short-Term Post-Employment Benefits
Directors and Board of Commissioners 21,094,556,133 13,366,345,279 2.69 2.29
Rental Expense
PT Lippo Karawaci Tbk 34,834,048,969 10,888,996,419 4.44 0.59
Interest Loan Expenses
PT Lippo Karawaci Tbk 31,018,102,587 -- 3.96
--On April 30, 2013, the Company entered into a loan agreement with LK. This agreement was effective from the signing of the agreement and will expire immediately when the Company repays the loan. It does not bear interest if it fully paid by December 31, 2013. On December 31, 2014, the bear interest is 7% - 7,5% per year based on prevailing interest rate on loans as agreed by both parties.
The entire balance of the related party transactions are transactions denominated in Rupiah.
The relationship and nature of accounts/ transactions with related parties are as follows:
Related Parties Relationship Nature of Accounts/Transaction
PT Bank Nationalnobu Tbk Under common control Placement of current account
PT Lippo Karawaci Tbk Ultimate parent entity Non-interest bearing and without maturity date of loan, key management employee benefits and rental expense and accrual
Directors and Board of
Comissioners Key of Management
Employee Benefit
All related parties transactions are disclosed in the consolidated financial statements.
11. Other Non Current Financial Assets
2014 2013
Rp Rp
Deferred Charges 11,108,902,947 20,893,340,447
Others (below Rp500 millions each) 2,289,099,982 1,943,326,201
Total 13,398,002,929 22,836,666,648
12. Property and Equipment
Beginning Balance Addition Disposal Reclassification Ending Balance
Rp Rp Rp Rp Rp
Acquisition Cost Direct Ownership
Land 43,195,729,300 58,338,000,000 -- -- 101,533,729,300
Building, Infrastructure and Renovations 291,719,048,205 68,032,606,754 -- 24,376,887,311 384,128,542,270
Medical Equipment 1,358,780,589,835 166,317,721,765 1,072,435,349 26,542,347,417 1,550,568,223,668
Furniture, Fixtures and Office Equipment 311,337,811,186 64,063,749,879 989,017,775 8,615,535,391 383,028,078,681 Transportation Equipment and Vehicles 19,094,402,824 2,127,507,250 158,063,626 422,350,000 21,486,196,448
Total Direct Ownership 2,024,127,581,350 358,879,585,648 2,219,516,750 59,957,120,119 2,440,744,770,367
Construction In Progress 90,456,063,910 149,109,360,699 -- (59,957,120,119) 179,608,304,490
Total Acquisition Cost 2,114,583,645,260 507,988,946,347 2,219,516,750 -- 2,620,353,074,857
Accumulated Depreciation Direct Ownership
Building, Infrastructure and Renovations 52,915,955,840 28,820,196,836 -- -- 81,736,152,676
Medical Equipment 516,513,232,971 184,081,252,705 907,435,345 -- 699,687,050,331
Furniture, Fixtures and Office Equipment 133,735,387,829 104,691,145,630 967,381,395 -- 237,459,152,064
Transportation Equipment and Vehicles 9,148,828,113 3,173,024,380 158,063,626 -- 12,163,788,867
Total Accumulated Depreciation
Direct Ownership 712,313,404,753 320,765,619,551 2,032,880,366 -- 1,031,046,143,938
Carrying Amount 1,402,270,240,507 1,589,306,930,919
2014
Beginning Balance Addition Disposal Reclassification Ending Balance
Rp Rp Rp Rp Rp
Acquisition Cost Direct Ownership
Land 42,179,077,300 1,016,652,000 -- -- 43,195,729,300
Building and Infrastructure 127,484,041,038 142,545,184,422 -- 21,689,822,745 291,719,048,205
Medical Equipment 905,404,656,735 426,415,623,028 7,571,079,015 34,531,389,087 1,358,780,589,835
Furniture, Fixtures and Office Equipment 217,750,864,022 125,189,842,986 208,681,380 (31,394,214,442) 311,337,811,186
Transportation Equipment and Vehicles 11,785,371,719 7,309,031,105 -- -- 19,094,402,824
Total Direct Ownership 1,304,604,010,814 702,476,333,541 7,779,760,395 24,826,997,390 2,024,127,581,350
Construction In Progress 46,073,901,730 69,263,816,695 54,657,125 (24,826,997,390) 90,456,063,910
Total Acquisition Cost 1,350,677,912,544 771,740,150,236 7,834,417,520 -- 2,114,583,645,260
Accumulated Depreciation Direct Ownership
Building and Infrastructure 28,068,987,209 24,846,968,631 -- -- 52,915,955,840
Medical Equipment 340,628,942,578 180,511,021,752 4,626,731,359 -- 516,513,232,971
Transportation Equipment and Vehicles 110,772,573,177 23,169,398,188 206,583,536 -- 133,735,387,829
Total Direct Ownership 5,914,983,073 3,233,845,040 -- -- 9,148,828,113
Total Accumulated Depreciation
Direct Ownership 485,385,486,037 231,761,233,611 4,833,314,895 -- 712,313,404,753
Carrying Amount 865,292,426,507 1,402,270,240,507
2013
In 2014, the addition of property and equipment, included property and equipment of the acquired company (see Notes 1.c and 29) with a total acquisition cost of Rp154,614,736,423 and accumulated depreciation of Rp53,643,975,818.
In 2013, the addition of property and equipment, included property and equipment of the acquired company (see Notes 1.c and 29) with a total acquisition cost of Rp246,927,708,694 and accumulated depreciation of Rp29,272,544,334.
