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
42
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets continued
a Financial assets carried at amortised cost continued Allowance for possible losses on earning assets of Subsidiary based on sharia
1. For Murabahah, Subsidiary evaluates whether there is an objective evidence the financial assets or group of financial assets are impaired at each statement of financial
position date as a result of an event occurred after initial recognition which impact the estimated future cash flows that can be reliably estimated. Impairment is recognised as
allowance and charged to the current statement of consolidated profit or loss and other comprehensive income current year.
For the collective impairment, as allowed under SFAS 102 Revised 2013, Bank Indonesia’s circular letter No. 1526DPbs dated July 10, 2013 and OJK’s letter No. S-
129PB.132014 dated November 6, 2014, for the first adoption, the Subsidiary may apply transition rule for collective impairment in accordance with prevailing Bank
Indonesia’s regulation. The transition rule can be applied at the latest December 31, 2014.
Since January 1, 2015, allowance for impairment on Murabahah receivables calculated using collective according to SFAS No.55, “Financial Instruments: Recognition and
Measurement”. According to the transition rule, the addition revesal of allowance for collective impairment as the implementation date of January 1, 2015 is charged to
retained earnings as of January 1, 2015. Refer to Note 64 on the impact of the deduction to the financial statements.
2. Directly attributable income and expenses are recognised using the initial effective interest rate used to discount the future cash flow of the assets.
b Financial assets classified as available for sale The Group assesses at each date of the consolidated statement of financial position
whether there is objective evidence that a financial asset or a group of financial assets is impaired. Refer to Note 2c.G.a for the criteria of objective evidence of impairment.
In the case of debt instruments classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is objective evidence of impairment
resulting in the recognition of an impairment loss. If any such evidence exists for available for sale financial assets, the cumulative loss - measured as the difference between the
acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in consolidated statement of profit or loss and other comprehensive
income - is removed from equity and recognised in the consolidated statement of profit or loss and other comprehensive income.
If, in a subsequent period, the fair value of a financial asset classified as available for sale increases and the increase can be objectively related to an event occurring after the
impairment loss was recognised in consolidated statement of profit or loss and other comprehensive income, the impairment loss is reversed through the consolidated
statement of profit or loss and other comprehensive income.
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
43
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets continued
