PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5109 28. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued
c. Movements of allowance for impairment losses on commitments and contingencies:
2011 2010
Balance at beginning of year 371,665
329,362 Reversalallowance during the year
127,257 53,358
Others 10, 044
11, 055
Balance at end of year 234,364
371,665
Includes effect of foreign currencies translation
Please refer to Note 2b.b.iv relating to the changes in accounting policies of allowance for impairment losses over financial guarantee contracts and commitments.
Management believes that the allowance for impairment losses on commitments and contingencies is adequate.
d. Information in respect of classification of “non-impaired” and“impaired” is disclosed in Note 57A. e. Deposits from customers pledged as collateral for bank guarantee and irrevocable letters of credit
as at 31 December 2011 and 2010 amounting to Rp738,609 and Rp415,568, respectively Note 19c.
29. TAXATION a. Current Tax Payable
2011 2010
Corporate tax payable - article 29: Bank Mandiri
636,654 629,379
Subsidiaries 125, 083
121,053 761,737
750,432
b. Tax Expense
2011 2010
Tax expense - current: Bank Mandiri
2,619,107 2,656,204
Subsidiaries 553,433
370,262 3,172,540
3,026,466 Tax expensebenefit - deferred:
Bank Mandiri 643,581
1,637,191 Subsidiaries
29 60,721
643,610 1,576, 470
3,816,150 4,602,936
As explained in Note 2ad, income tax for Bank Mandiri and its subsidiaries is calculated as a separate legal entity.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5110 29. TAXATION continued
c. Tax Expense - Current
The reconciliation between income before tax benefitexpense as shown in the consolidated statements of income and income tax calculations and the related current tax expense for Bank
Mandiri and its Subsidiaries are as follows:
2011 2010
Consolidated income before tax expense and non-controlling interests
16,512, 035 13,972, 162
Less: Income before tax expense of Subsidiaries -
after elimination 1,003, 303
460, 469 Impact of changes in presenting investment in Subsidiaries
by using cost method previously equity method refer to Note 2b.vi 869,011
- Income before tax expense and non-controlling interests –
Bank Mandiri only 14,639, 721
13,511,693 Adddeduct permanent differences:
Non-deductible expenses non-taxable income 1,675, 490
557,440 Losses from overseas branches
632 52,049
Others 2, 404
6,157 Adddeduct temporary differences:
Allowance for impairment losses on loans and write-offs
1,926, 444 2,085 ,428
Allowance for impairment losses on financial assets other than loans
1,170, 835 410,440
Provision for post-employment benefit expense, provisions for bonuses, leave and Holiday THR entitlements
194,806 573,254
Allowance for estimated losses arising from legal cases
251 154,457
Allowance for possible losses on other assets 161, 460
238,540 Provision for estimated losses on
commitments and contingencies 136, 401
41,498 Allowance for possible losses of
abandoned properties 6, 049
12,635 Allowance for possible losses of
repossessed assets 108, 451
3,085 Depreciation of fixed assets
1,097 8,990
Unrealised lossessgains on decrease increase in fair value of marketable securities and
Government Bonds - fair value through profit or loss 96,341
93,345 Difference in net realisable value of
abandoned properties -
2 ,877 Difference in net realisable value of
repossessed assets 258
33 Estimated taxable income
13,095, 534 10,624,817
Estimated tax expense-current Bank Mandiri only
2,619, 107 2,656,204
Subsidiaries 553, 433
370,262
Estimated tax expense- current 3,172,540
3,0 26,466
In calculating estimated tax expense for the year ended 31 December 2010, the Bank still applied equity method to record investment in Subsidiaries refer to Note 2b.vi.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5111 29. TAXATION continued
c. Tax expense - Current continued