PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
16
1. GENERAL continued
g. Structure and Management continued
also appointed as Independent Commissioner. also appointed as Compliance Director.
Bank Mandiri’s Audit Committee as of June 30, 2006 and 2005 is comprised of the following members: 2006
2005 Chairman
: Gunarni Soeworo
Gunarni Soeworo Member :
Soedarjono Soedarjono
Member :
Yap Tjay Soen Yap Tjay Soen
Member :
Zulkifli Djaelani Zulkifli Djaelani
Member :
Imam Sukarno Imam Sukarno
As of June 30, 2006 and 2005 Bank Mandiri has a total of 21,149 and 20,807 employees, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Preparation of the Consolidated Financial Statements The consolidated financial statements of Bank Mandiri and Subsidiaries have been prepared in
conformity with the Statement of Financial Accounting Standards SFAS No. 31 Revised 2000, “Accounting for the Banking Industry” and other generally accepted accounting principles established
by the Indonesian Institute of Accountants and, where applicable, with prevailing banking industry practices and accounting and reporting guidelines prescribed by the Indonesian banking regulatory
authority and the Capital Market Supervisory Board. The consolidated financial statements have been prepared on the historical cost and accrual basis of
accounting, except for trading and available for sale securities and Government Recapitalization Bonds and derivative receivables and payables which are stated at fair value, hedge bonds which are stated
at indexed value, certain investments in shares of stock which are accounted for under the equity method, and certain premises and equipment which have been revalued.
The consolidated statements of cash flows are presented under the direct method which classifies cash receipts and payments on the basis of operating, investing and financing activities. For the
purpose of the consolidated statements of cash flows, cash and cash equivalents include cash on hand, current accounts with Bank Indonesia and current accounts with other banks.
The financial statements of subsidiary company engaged in syariah banking have been prepared in conformity with PSAK No.59 regarding the Accounting for Syariah Banking and Accounting Guidelines
for Indonesian Syariah Banking PAPSI.
b. Principles of Consolidation The consolidated financial statements include the financial statements of Bank Mandiri and its majority-
owned or controlled Subsidiaries. Control is presumed to exist where more than 50 of a Subsidiary’s voting power is controlled by Bank Mandiri, or Bank Mandiri is able to govern the financial and
operating policies of a Subsidiary, or control the removal or appointment of the majority of a Subsidiary’s board of directors. Significant inter-company balances and transactions have been
eliminated.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
17
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
