These consolidated financial statements are originally issued in Bahasa.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
51
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
n. Derivative receivables and derivative payables continued
3. Gain or loss arising from derivative contract that is designated as a net investment hedge in a
foreign operation is reported as other comprehensive income, as long as the transactions are effectively recognised as hedge transactions.
4. Gain or loss arising from derivative contract that is not designated as a hedging instrument or
derivative contract that does not qualify as a hedging instrument is recognised as gain or loss in current year.
Derivative receivables are classified as financial assets at fair value through profit or loss, meanwhile derivative payables are classified as financial liabilities at fair value through profit or
loss. Refer to Note 2c for the accounting policy of financial assets and liabilities at fair value through profit or loss.
o. Loans and sharia receivablesfinancing
Loans represent agreement to provide cash or cash equivalent based on agreements with borrowers, where borrowers are required to repay their debts with interest after a specified period,
and matured trade finance facilities which have not been settled within 15 days.
Syndicated loans, direct financing and joint financing, and channeling loans are stated at their outstanding balances in proportion to the risks borne by the Bank and its Subsidiaries.
Included in loans are financing by Bank Syariah Mandiri “BSM”, a Subsidiary, in the form of sharia receivables, sharia financing and funds of Qardh.
Brief explanation for each type of sharia financing is as follows: Mudharabah financing is a co-operation for certain project between first party malik, shahibul mal
or Subsidiary as owner of fund and second party amil, mudharib or debtors as fund manager whereas the profit sharing will be shared in accordance with percentage as stated in the
agreement, meanwhile losses will be borne by the Subsidiary except if the second party does negligence, error or violate the agreement. Mudharabah financing is stated at the outstanding
financing balance less allowance for possible losses.
Musyarakah financing is a co-operation between two or more parties in a certain business wherein each party provides a portion of fund on condition that the profit shall be shared based on the
agreement, whereas losses shall be borne in accordance with the portion of the fund of each party. Permanent musyarakah is musyarakah in which the fund portion of each partner is stated
explicitly in the contract and remains the same until the contract expires. Declining musyarakah musyarakah mutanaqisha is musyarakah in which the fund portion of the Bank will be transferred
in several stages to the other partner, resulting in the declining of fund portion of the Bank and, at the end of contract, the other partner will become the sole owner of the business. Musyarakah
financing is stated at the outstanding financing balance less allowance for possible losses.
Ijarah receivables are the financing on the availability of fund in relation to transferring the right to use and benefit of a good and service based on rental transaction which was not followed by
transfer of the goods ownership to the lessee. Ijarah muntahiyah bittamlik is an agreement on the availability of fund in relation to transferring the use right and benefit of a good or service based on
rental transaction with an option to transfer the ownership of goods to the lessee. Ijarah receivables are recognised at due date at the amount of it lease income not yet received and
presented at its net realisable value, which is the outstanding balance of the receivables.
These consolidated financial statements are originally issued in Bahasa.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
52
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
o. Loans and syariah receivablesfinancing continued
Murabahah receivables are the financing of goods by confirming purchase price to a buyer and the buyer pays it with a higher price as an agreed profit. Murabahah receivables are stated at the
balance of the receivable less deferred margin and allowance for possible losses.
Istishna receivables are the financing of goods in the form of manufacturing the ordered goods with the agreed criteria and specification by both of orderer or buyer Mustashni and manufacturer
or seller Shani. Istishna receivables are presented based on the outstanding billings less allowance for possible losses.
Qardh receivables are a borrowing at the condition that the borrower should repay the loan at specified period of time. The Subsidiary will obtain a fee ujrah from this transaction, which is
recognised upon receipt. Qardh receivables included Hawalah and Rahn financing agreement. Hawalah is transfer of debts from debtors to other party Subsidiary which obligate to bear or paid.
Rahn represents the mortgage of goods or assets owned by the customer for an equivalent amount of money. Assets or goods mortgaged are appraised based on market value, less a
certain deduction percentage. The Subsidiary will obtain a fee ujrah, which is recognised upon receipt. Qardh receivables are stated at its outstanding balance less allowance for possible losses.
Loans are classified as financial assets in loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
Loan restructuring Loan restructuring may involve a modification of the terms of the loans, conversion of loans into
equity or other financial instruments andor a combination of both. Losses on loan restructurings due to modification the terms of the loans are recognised as part of
allowance for impairment losses only if the present value of total future cash receipts specified by the new terms of the loans including receipts designated as interest and loan principal, are less
than the carrying amount of loans before restructuring.
For loan restructurings which involve a conversion of loans into equity or other financial instruments, a loss on loan restructuring is recognised as part of allowance for impairment losses
only if the fair value of the equity or financial instruments received, deducted by estimated expenses to sell the equity or other financial instruments, is less than the carrying amount of loans.
Overdue interest, which is capitalised to loans under new restructuring agreements, is recorded as deferred interest income and is amortised into income proportionately based on the amount of
capitalised interest to the loan principal upon credit collection.
p. Consumer financing receivables
Subsidiary’s consumer financing receivables are recognised initially at fair value, added with directly attributable transaction costs and deducted by yield enhancing income, and subsequently
measured at amortised cost using the effective interest rate method.
Subsidiary’s consumer financing receivables are classified as loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
