PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
December 31, 2011 and 2010 and For the Years then Ended
- 43 - Deposits include syariah deposits and unrestricted investments consisting of:
• Savings Wadiah is entrusted funds in the form of savings where income fund owners get a bonus.
• Unrestricted investments in current accounts, savings and time deposits represent deposits of customers funds that provide benefits for the owner of funds from Islamic
unit revenue for the use of these funds in accordance with the ratio determined and approved previously.
Deposits from other banks are liabilities to other banks in the form of demand deposits and call money less thanor 90 days and time deposits with original maturities of each
agreement.
z. Liability for Future Policy Benefits
Liability for future policy benefits represents the present value of estimated future policy benefits to be paid to policyholders or their heirs less present value of estimated future
premiums to be received from the policyholders, recognized consistently with the recognition of premium income. Liability for future policy benefits is stated in the consolidated statement
of financial position in accordance with actuarial calculation. The increase decrease in liability for future policy benefits is recognized as an expense income in the current year.
aa. Stock Issuance Costs
Stock issuance costs are deducted from the additional paid-in capital portion of the related proceeds from issuance of shares and are not amortized.
ab. Recognition of Revenues and Expenses
1. Recognition of Interest Revenues, Interest Expenses, Sharia Revenue, and Revenue Sharing Distribution
Interest Revenue and Interest Expenses Interest income and interest expense for all financial instruments are recognized in the
consolidated statement of income on accrual basis using the effective interest rate method.
Transaction costs that occur and are directly attributable to the acquisition or issuance of financial instruments not measured at fair value through profit and loss are amortized
over the life of financial instruments using the effective interest rate method and recorded as part of interest income for financial assets directly attributable transaction
costs, and as part of interest expense related to transaction costs of financial liabilities. If a financial asset or group of similar financial assets in the category are held to
maturity, loans and receivables, and available for sale are impaired, the interest income earned after the impairment loss is recognized based on the interest rate used for
discounting future cash flows in calculating impairment losses.
Revenue and ExpenseProfit Sharing Sharia Revenue consists of income from murabahah sharia, income from ijarah assets lease,
and from the results of financing.
