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
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
r. Fixed assets and leased assets continued
i. Fixed assets and software continued
Bank Mandiri and Subsidiaries applied SFAS No. 16 Revised 2011 “Fixed Assets”. Bank Mandiri and Subsidiaries chose the cost model, and therefore, the balance of fixed assets
revaluation reserve at the first time adoption of SFAS No. 16 Revised 2007, which were presented in the shareholders’ equity section amounting to Rp3,046,936 in the consolidated
statement of financial position, were reclassified to appropriated retained earnings in 2008.
ii.Leased assets
Group apply SFAS No. 30 Revised 2011 “Lease”, effective beginning on or after January 1, 2012. Under SFAS No. 30 Revised 2011, determination of whether an agreement is a lease
agreement or lease agreement containing the substance of the agreement based on the inception date and whether the fulfilment of the agreement depends on the use of an asset and
the agreement provides a right to use the asset. According to this revised SFAS, leases that transfer substantially all the risks and benefit related to ownership, are classified as finance
leases. Further, a lease is classified as operating leases, if the lease does not transfer substantially all the risks and benefits related to ownership of assets.
Based on SFAS No. 30 Revised 2011, under a finance leases, Group recognise assets and liabilities in its consolidated statement of financial position as
the fair value of the leased property or, if lower, the present value of the minimum lease payments, each determined at the
inception of the lease. Lease payment is apportioned between the finance charge and the reduction of the outstanding liability. The finance expense is allocated to each period during the
lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Finance expenses recorded in the consolidated statement of income. Leased assets
presented under fixed assets are depreciated over the shorter of the estimated useful life of the assets and the lease term, if there is no reasonable certainty that Bank Mandiri will obtain
ownership by the end of the lease term.
Under an operating lease, the Group recognise lease payments as an expense on a straight-line basis over the lease term.
If a rental agreement contains elements of land and buildings, the Group assessed the classification of each element as a finance lease or an operating lease separately.
iii.Intangible assets
Intangible assets are recognized if, and if only when its cost can be measured reliably and it is probable that expected future benefits that are attributable to it will flow to the Bank and
Subsidiaries. Intangible assets consist of goodwill and computer software that are purchased by the Bank and Subsidiaries.
Software purchased by the Bank and subsidiaries is recorded at cost less accumulated amortization and accumulation of possible losses. Amortization method, estimated useful life
and residual value is reviewed at end of reporting period and adjusted if necessary.
Refer to Note 2s for the accounting treatment of goodwill.
