PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 538 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
r. Allowance for Possible Losses on Non-Earning Assets continued
The classification for interbranch and suspense accounts are as follows: Period
Current Up to 180 days
Loss More than 180 days
s. Acceptance Receivables and Payables
Acceptance receivables are classified as financial assets in loans and receivables. Refer to Note 2b for the accounting policy of loans and receivables.
Acceptance payables are classified as financial liabilities at amortised cost. Refer to Note 2b for the accounting policy for financial liabilities at amortised cost.
Prior to 1 January 2010, acceptance receivables are stated at the outstanding balance less allowance for impairment losses.
t. Other Assets
Other assets include accrued income for interest, provision and commissions, receivables, prepaid taxes, prepaid expenses, repossessed assets, abandoned properties, inter-branch accounts and
others.
Repossessed assets represent assets acquired by Bank Mandiri and Subsidiaries, both from auction and non auction based on voluntary transfer by the debtor or based on debtor’s approval to
sell the collateral where the debtor could not fulfill their obligations to Bank Mandiri and Subsidiaries. Repossessed assets represent loan collateral acquired in settlement of loans and is
included in “Other Assets”.
Abandoned properties represent Bank and Subsidiaries’ fixed assets in form of property which were not used for Bank and Subsidiaries’ business operational activity.
Repossessed assets and abandoned properties are presented at their net realisable values. Net realisable value is the fair value of the repossessed assets less estimated costs of liquidating the
repossessed assets. Any excess of the loan balance over the value of the repossessed assets, which is not recoverable from the borrower, is charged to the allowance for impairment losses.
Differences between the estimated realisable value and the proceeds from sale of the repossessed assets are recognised as current year’s gain or loss at the time of sale.
Expenses for maintaining repossessed assets and abandoned properties are recognised in the current year’s consolidated statement of income. The carrying amount of the repossessed assets is
impaired to recognise a permanent decrease in value of the repossessed asset. Any impairment occurred will be charged to the current year’s consolidated statement of income.
u. Obligation due Immediately
Obligations due immediately are recorded at the time of the obligations occurred from customer or other banks. Obligation due immediately are classified as financial liabilities at amortised cost. Refer
to Note 2b for the accounting policy for financial liabilities at amortised cost.
Prior to 1 January 2010, obligations due immediately are stated at the Bank’s and Subsidiaries obligations amount.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 539 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
v. Deposits from Customers
Deposits from customers are the funds placed by customers excluding banks with the Bank based on a fund deposit agreements. Included in this account are demand deposits, saving deposits, time
deposits and other similar deposits.
Demand deposits represent deposits of customers that may be used as instruments of payment, and which may be withdrawn at any time by cheque, automated teller machine card ATM or other
orders of payment or transfers.
Saving deposits represent deposits of customers that may only be withdrawn over the counter and via ATMs or funds transfers by SMS Banking, Phone Banking and Internet Banking when certain
agreed conditions are met, but which may not be withdrawn by cheque or other equivalent instruments.
Time deposits represent customers deposits that may only be withdrawn after a certain time based on the agreement between the depositor and the Bank. These are stated at amortised cost in the
certificates between the Bank and the holders of time deposits.
Included in demand deposits are wadiah demand and saving deposits. Wadiah demand deposits can be used as payment instruments and can be withdrawn any time using cheque and bilyet giro.
Wadiah demand and saving deposits earn bonus based on Bank’s policy. Wadiah saving and demand deposits are stated at the Bank’s liability amount.
Deposits from customers are classified as financial liabilities at amortised cost. Incremental costs directly attributable to acquistion of deposits from customers are included in the amount of deposits
and amortised over the expected life of the deposits. Refer to Note 2b for the accounting policy for financial liabilities at amortised cost.
Syirkah Temporer Fund Syirkah temporer fund is the fund received by Subsidiary PT Bank Syariah Mandiri where the
Subsidiary has the right to manage the fund in accordance with the Subsidiary’s policy unrestricted investment or policy from the investors restricted investment, and the profit distribution based on
agreement of both parties.
Syirkah temporer fund is not classified as liability as the Subsidiary is not oblige, when loss incurred, to return the original fund received from the investors, except due to the default or negligent of the
Subsidiary. In addition, the Syirkah temporer fund is not classified as an equity as it has a maturity period and the investors do not have the equal ownership with shareholders, such as voting right
and the right on income distribution from current asset and other non investment accounts.
The investors of Syirkah temporer fund received return in accordance with the agreement and bear the loss incurred proportionately. The distribution of return from Syirkah temporer fund can be in
form of profit sharing or income sharing.
Prior to 1 January 2010 Current and saving accounts are stated at the payable amount. Included in the saving accounts is
Wadiah saving deposits. Time deposits are stated at their nominal value.
Certificates of deposits are stated at their nominal value less unamortised interest.
