COMPANY PROFILE
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Branded Product (CBP) group, their business operational were transferred to the Indofood
CBP (ICBP). Then, Indofood CBP (ICBP) listed in Indonesia stock exchange in 7
October 2010 as completion of internal restructuring process. In 2013, Indofood
Consumer Branded Product (ICBP) established joint venture with Asahi Group Holdings
Southeast Asia Pte. Ltd. as a sign to stated the beverage business.
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CHAPTER II
FINANCIAL STATEMENTS
2.1 Accounting Equation
The accounting equation shown the relationship among assets which is the
resources owned by the business, liabilities which is the rights of creditors, and equity
which is the rights of the owners. The accounting equation is shown as below.
Assets = Liabilities + Owner s Equity
Indofood CBP (ICBP)
Accounting Equation 2016 2015
Assets 28,901,948 26,560,624
Liabilities 10,401,125 10,173,713
Owners equity 18,500,823 16,386,911
(Expressed in millions of Rupiah)
Based on the Indofood CBP consolidated statement of financial position in 2015,
the total asset is 26,560,624. Then, the total liabilities are 10,173,713 and the equity is
16,386,911. So, the accounting equation for 2015 as follows.
Assets = Liabilities + Owner s Equity
26,560,624 = 10,173,713 + 16,386,911
For 2016, the total asset is 28,901,948. With the total liabilities are 10,401,125 and
the total equity is 18,500,823. Then, the accounting equation for 2016 as follows.
Assets = Liabilities + Owner s Equity
28,901,948 = 10,401,125 + 18,500,823
Comparing between 2015 report and 2016 report, there is a significant change in
total assets that contribute by the increasing of the current assets due to cash, equivalent
cash and net inventories and account receivables. Moreover, non-current assets
contributed by the increasing of net fixed assets related to the process of expansion by
Indofood CBP.
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expenses that occur during the operation and other expenses that stated into the
consolidated statement of comprehensive income.
Indofood CBP (ICBP)
Revenue 2016 2015
Net sales 34,466,069 31,741,094
Other operating income 310,594 271,585
Finance income 503,559 530,713
Expense 2016 2015
Cost of goods sold 23,606,755 22,121,957
Selling and distribution expenses 4,269,595 4,172,116
General and administrative expenses 1,653,564 1,539,230
Other operating expenses 382,581 187,244
Finance expense 178,970 314,025
Income tax expense 1,357,953 1,086,486
(Expressed in millions of Rupiah)
Based on the data that shows the revenue and expenses of the ICBP, the cost of
goods sold is increase in accordance with the increase of net sales that contributed by the
increasing of average selling price and volume growth. In managements analysis and
discussion shows that the selling of noodle become the largest contributor of the net sales,
with 64,3%.
2.3 Revenue
The major source of revenue come from the net sales that reached 34,466,069 or
34,4 trillion rupiah in 2016 increase from 31,741,094 or 31,7 trillion rupiah in 2015.
Noodle division is the biggest contributor although decrease from 65,2 % become 64,3%
in 2016. Followed by the increasing dairy division with 18,5% become 19,7%. Then,
snack foods with 6,6%, beverages with 4,9%, food seasoning with 2,5%, and nutrition
and special foods with 1,9%.
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2.4 Expenses
The major source of expenses come from the cost of goods sold, and operating
expense which is selling distribution expense and general administrative expense. Cost of
goods sold increase in line with the increase of sales and the lower raw material cost.
Then, selling and distribution expense is primarily contributed from the advertising and
promotion, while the general and administrative expense also contributed from the
salaries, wages, and employee benefit.
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CHAPTER III
INTERNAL CONTROL
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3.3 External auditor
Public accounting firm Purwantono, Sungkoro & Surja or PSS are the external
auditor of the Indofood CBP. In the independent auditors report it provide several item as
follows,
a. Shareholders and the board of commissioners and directors PT CBP Indofood
Sukses Makmur Tbk
b. Managements responsibility for the financial statement
c. Auditors responsibility
d. Opinion
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CHAPTER IV
CASH AND ACCOUNT RECEIVABLE
4.1 Cash
Based on the consolidated statement of cash flows there are several important
information that we need such as the total cash and equivalent cash that company have at
the end of the financial year. Comparing to the financial year of 2016 and 2015, PT
Indofood CBP have the total cash and equivalent cash in 2016 is about 8,371,980 while
for the year 2015 the total cash and equivalent cash is 7,543,475. Those figures are
expressed in millions of Rupiah. Related to the percentage cash over the total assets, it
can be traced from the figures as it shown below.
Indofood CBP (ICBP)
2016 2015
Cash and equivalent cash 8,371,980 7,543,475
Assets 28,901,948 26,560,624
Percentage cash over total assets 28,96% 28,4%
(Expressed in millions of Rupiah)
Moreover, the consolidated statement of cash flows provides the information
about the cash inflows and cash outflows. The main sources of cash inflows as follows,
Indofood CBP (ICBP)
Cash inflows 2016
Cash received from customer 34,096,275
Receipts from interest income 503,558
Proceeds from sale of fixed assets 32,891
Deduction (addition) to investment in associates 30,960
Proceeds from short-term bank loans 307,500
Proceed from advance for stock subscription from
83,300
non-controlling interest
Proceeds from long-term bank loans 50,000
Capital contribution from non-controlling interest 23,107
(Expressed in millions of Rupiah)
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The main source of cash inflows of PT Indofood CBP is the cash receipt from
customer which contributes from the selling product of PT Indofood CBP. The sales of
product that consist from noodle division as the biggest contributor, then dairy division,
snack foods, beverages, food seasoning, and nutrition and special foods.
Next, regarding the main source of cash outflows, described as bellows.
Indofood CBP (ICBP)
Cash outflows 2016
Cash paid to suppliers 18,847,795
Payments for production and operating expense 6,268,752
Payments to employees 3,156,893
Payments of taxes-net 1,530,642
Payments of interest expense 176,844
Other payments-net 33,943
Addition to fixed assets 905,409
Addition to available for sale assets 559,340
Advances for purchases of fixed assets 159,234
Payment of cash dividends 1,492,724
Payments of short-term bank loans 537,500
Payments of long-term bank loans 528,352
Payments of dividends to non-controlling interest 51,668
Payments of liability for purchases of fixed assets 12,890
(Expressed in millions of Rupiah)
From those items of cash outflows, the main source of cash outflows is cash paid to
suppliers which is 18,847,795 or 18,8 trillion Rupiah. The next is payments for
production and opereating expense with 6,268,752 or 6,2 trillion Rupiah.
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The account receivable consists of two types which is the account receivable-trade
and account receivable-non-trade. Those types account receivable also differ into two
categories of transaction which is third parties and related parties. The total amount of
account receivable will be shown as bellow.
Indofood CBP (ICBP)
Account receivable
Account receivable-trade
Third parties 984,573
Related parties 2,736,633
Total account receivable-trade 3,721,206
Account receivable-non-trade
Third parties 28,355
Related parties 144,364
Total account receivable-non-trade 172,719
Total account receivable 3,893,925
(Expressed in millions of Rupiah)
From the information above, the total amount of account receivable is 3,893,925
or 3,8 trillion Rupiah with the total account receivable-trade is 3,721,206 and total
account receivable-non-trade is 172,719 or 172,7 billion Rupiah.
The percentage of account receivable over the total assets is 13,47 %. The percentage
calculated from the total account receivable divided with the total assets, as it shown
bellow.
Indofood CBP (ICBP
2016
Account receivable 3,893,925
Assets 28,901,948
Percentage account receivable over total assets 13,47%
(Expressed in millions of Rupiah)
Regarding to estimating the uncollectible, there are two methods that used in order
to estimate uncollectible accounts which is percent of sales method and analysis of
receivables method (Warren, Reeve, & Duchac, 2013). Based on the notes to the
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consolidated financial statements of PT Indofood CBP, it mentioned that the company is
using the analysis of receivable method regarding the account receivable-trade.
Analysis of receivable method is a method that based on the assumption that the
longer an account receivable is outstanding, the less likely it will be collected. There are
several steps in applying the analysis of receivable method. The steps are summarized in
an aging schedule, and the process is called aging the receivables (Warren, Reeve, &
Duchac, 2013).
Furthermore, the aging analysis of account receivable that applied by PT Indofood
CBP is as follows:
Indofood CBP (ICBP)
December 31,2016
Neither past due nor impaired 3,021,006
Past due but not impaired :
1-30 days 470,226
31-60 days 68,632
61-90 days 36,584
More than 90 days 124,758
Past due and/or individually impaired 19,239
Total 3,740,445
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CHAPTER V
INVENTORY
5.1 Inventory
Based on the consolidated statement of financial position, the inventory at the end
of the financial year is 3,109,916 or 3,1 trillion Rupiah in 2016. These figure increase for
more than 500 billion Rupiah in 2015 with the total amount inventory is 2,546,835 or 2,5
trillion Rupiah.
Moreover, related to the percentage of inventory over total assets, explained as
bellows,
Indofood CBP (ICBP)
2016 2015
Inventory 3,109,916 2,546,835
Assets 28,901,948 26,560,624
Percentage inventory over total assets 10,76% 9,58%
(Expressed in millions of Rupiah)
The percentage of inventory over the total assets in 2016 is 10,76 % which come
from 3,109,916 as the total of inventory divided by 28,901,948 as the total of assets. As
comparison with 2015, the percentage of inventory over the total assets is 9,58%. Thus,
there is an increase for 1,18% for the percentage of inventory over the total assets.
5.2 Method
The inventory system that used by PT Indofood CBP is periodic system which at
the end of the accounting period, a physical inventory is applied to determine the cost of
the inventory (Warren, Reeve, & Duchac, 2013). Meanwhile, the costing method that
used by PT Indofood CBP is weighted average cost method which uses the weighted
average unit cost in determining the cost of merchandise sold and the ending merchandise
inventory (Warren, Reeve, & Duchac, 2013). It is also explained that the inventories are
valued at the lower of cost and net realizable value.
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5.3 Item
The expected inventory item of the company is the type of inventory that
described in the notes to the consolidated financial statement at the part of inventories
which include several item, such as finished goods inventories, work-in-process
inventories, raw and packaging materials, Fuel, general supplies, spare parts and others,
then last the inventories in transit.
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CHAPTER VI
LONG-TERM ASSETS
6.2 Items
There are several items that include in the non-current assets such as, deferred tax
assets-net, long-term investments, fixed assets-net, deferred charges-net, goodwill,
intangible assets-net and other non-current assets
6.3 Method
Based on the description on the noted to the financial statement, there is only
depreciation and amortization that explained on that part. The depreciation and
amortization method that applied by PT Indofood CBP is the straight-line method based
on the estimated useful lives of the assets.
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REFERENCES
Dhorifi, Z. O. (2016, June 7). Adu Kuat Brand Awareness Indomie vs Mie Sedap Selama 5 Tahun
Terakhir (2011-2015). Retrieved April 25, 2017, from MARS Indonesia:
www.marsindonesia.com
Indofood. (n.d.). Brief History of the Company. Retrieved April 25, 2017, from Indofood:
www.indofood.com
Indofood CBP. (n.d.). History. Retrieved April 25, 2017, from Indofood CBP:
www.indofoodcbp.com
Indonesia Investment. (n.d.). Instant Noodles Market Indonesia : Difficult to Compete with
Indomie. Retrieved April 25, 2017, from Indonesia Investment: www.indonesia-
investment.com
Warren, C. S., Reeve, J. M., & Duchac, J. E. (2013). Accounting. United States: South-Western
Cengage Learning.
Wikipedia. (n.d.). Indofood Sukses Makmur. Retrieved April 25, 2017, from Wikipedia:
https://id.wikipedia.org
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