ECONOMIC CONDITIONS Continued 2002 12 Full Audited Financial Statements w Notes
62. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING PRINCIPLES
FOLLOWED BY THE BANK “INDONESIAN GAAP” AND INTERNATIONAL ACCOUNTING STANDARDS “IAS” Continued b. Allowance for Possible Losses on Earning Assets Under Indonesian GAAP, the Bank records allowances for possible losses on earning assets using a general and specific allowance based on management’s estimates and using the guidelines prescribed by Bank Indonesia. Under IAS, the Bank records allowances for possible losses on earning assets that are not considered impaired using general and specific allowances in accordance with the provisions of IAS No. 37 – “Estimated Liabilities, Contingent Liabilities and Contingent Assets” from January 1, 2000. Under IAS No. 39 – “Financial Instruments: Recognition and Measurement”, from January 1, 2001, the Bank calculates allowances for possible losses on earning assets based on the net present value of earning assets that are impaired and based on the expected collection of other earning assets. An earning asset is considered impaired when it becomes probable that the Bank will be unable to collect all amounts due according to contractual terms. c. Derivative instruments Under Indonesian GAAP, the Bank adopted SFAS No. 55 – “Accounting for Derivative Instruments and Hedging Activities” that is effective from January 1, 2001 which requires that derivative instruments be measured and recognized at their fair values. Such values for Indonesian Banks are further defined under the reporting guidelines prescribed by Bank Indonesia and are based on the value of derivative instruments determined based on the Reuters spot rate at reporting date. Under IAS No. 39 – “Financial Instruments: Recognition and Measurement”, from January 1, 2001 the Bank calculates the fair values of derivative instruments based on forward rates of exchange. The Bank classifies Government bonds Note 8 as originated loans under IAS and therefore no separate measurement and recognition is required for indexation derivatives that are embedded in the hedge bonds. Originated loans are characterized by assets for which the Bank provided the original funding and are not determined by the form of the instrument that results from the loan origination. d. Employee Benefits In accordance with the Decree of the Minister of Manpower No.Kep-150Men2000 “KEPMEN 150” dated June 20, 2000, regarding the “Settlement of Labour Dismissal and the Stipulation of Severance Pay, Gratuity and Compensation in Companies”, the Bank recognizes a provision for employee entitlements based on actuarial reports. In accordance with SFAS No. 57 – “Provisions, Contingent Liabilities and Contingent Assets”, no specific actuarial method is mandated. The Bank however applies the projected unit credit valuation method and the simplified actuarial valuation method as of December 31, 2002 and 2001, respectively. Under IAS, KEPMEN 150 is accounted for as a defined benefit plan and as such it requires the actuary to use the projected unit credit method of actuarial valuation as mandated by IAS 19 – “Employee Benefits”. Further, changes in the amount of the actuarially determined provision for KEPMEN 150 does not require recognition, unless the change is more than a 10 corridor range of variation.Parts
» 2002 12 Full Audited Financial Statements w Notes
» GENERAL 2002 12 Full Audited Financial Statements w Notes
» GENERAL Continued 2002 12 Full Audited Financial Statements w Notes
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued
» BANK MANDIRI MERGER AND RECAPITALIZATION
» BANK MANDIRI MERGER AND RECAPITALIZATION Continued
» BANK MANDIRI MERGER AND RECAPITALIZATION Continued CURRENT ACCOUNTS WITH BANK INDONESIA
» CURRENT ACCOUNTS WITH OTHER BANKS
» CURRENT ACCOUNTS WITH OTHER BANKS Continued PLACEMENTS WITH OTHER BANKS
» PLACEMENTS WITH OTHER BANKS Continued
» PLACEMENTS WITH OTHER BANKS Continued SECURITIES
» SECURITIES Continued SECURITIES Continued
» SECURITIES Continued 2002 12 Full Audited Financial Statements w Notes
» GOVERNMENT BONDS Continued 2002 12 Full Audited Financial Statements w Notes
» TRADE DOCUMENTS AND OTHER FACILITIES
» TRADE DOCUMENTS AND OTHER FACILITIES Continued
» SECURITIES PURCHASED WITH AGREEMENTS TO RESELL
» DERIVATIVE RECEIVABLES AND PAYABLES DERIVATIVE RECEIVABLES AND PAYABLES Continued
» DERIVATIVE RECEIVABLES AND PAYABLES Continued LOANS LOANS Continued
» LOANS Continued 2002 12 Full Audited Financial Statements w Notes
» LOANS Continued LOANS Continued
» LOANS Continued ACCEPTANCES RECEIVABLE
» ACCEPTANCES RECEIVABLE Continued INVESTMENTS IN SHARES OF STOCK
» INVESTMENTS IN SHARES OF STOCK Continued
» INVESTMENTS IN SHARES OF STOCK Continued PREMISES AND EQUIPMENT PREMISES AND EQUIPMENT Continued
» PREMISES AND EQUIPMENT Continued
» OTHER ASSETS 2002 12 Full Audited Financial Statements w Notes
» OTHER ASSETS Continued 2002 12 Full Audited Financial Statements w Notes
» DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS DEPOSITS FROM CUSTOMERS - SAVINGS DEPOSITS
» DEPOSITS FROM OTHER BANKS - DEMAND DEPOSITS
» DEPOSITS FROM OTHER BANKS - INTER-BANK CALL MONEY
» DEPOSITS FROM OTHER BANKS - TIME DEPOSITS AND CERTIFICATES OF DEPOSIT Continued
» SECURITIES SOLD WITH AGREEMENT TO REPURCHASE
» ACCEPTANCES PAYABLE 2002 12 Full Audited Financial Statements w Notes
» SECURITIES ISSUED 2002 12 Full Audited Financial Statements w Notes
» SECURITIES ISSUED Continued FUND BORROWINGS
» FUND BORROWINGS Continued 2002 12 Full Audited Financial Statements w Notes
» ALLOWANCE FOR POSSIBLE LOSSES ON COMMITMENTS AND CONTINGENCIES
» ALLOWANCE FOR POSSIBLE ON COMMITMENTS AND CONTINGENCIES Continued
» Corporate income tax expense
» TAXATION Continued c. Corporate income tax expense - current
» TAXATION Continued c. Corporate income tax expense - current continued
» Corporate income tax expense - deferred
» TAXATION CONTINUED e. Deferred tax assets
» OTHER LIABILITIES 2002 12 Full Audited Financial Statements w Notes
» OTHER LIABILITIES Continued SUBORDINATED LOANS
» SUBORDINATED LOANS Continued 2002 12 Full Audited Financial Statements w Notes
» SUBORDINATED LOANS Continued SUBORDINATED LOANS Continued
» LOAN CAPITAL 2002 12 Full Audited Financial Statements w Notes
» LOAN CAPITAL Continued 2002 12 Full Audited Financial Statements w Notes
» MINORITY INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES SHAREHOLDER’S EQUITY
» SHAREHOLDER’S EQUITY Continued
» INTEREST INCOME 2002 12 Full Audited Financial Statements w Notes
» INTEREST EXPENSE 2002 12 Full Audited Financial Statements w Notes
» OTHER FINANCING EXPENSES 2002 12 Full Audited Financial Statements w Notes
» PROVISIONREVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES ON EARNING ASSETS
» GAINLOSS FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERNMENT BONDS
» GAIN FROM SALE OF SECURITIES AND GOVERNMENT BONDS
» GENERAL AND ADMINISTRATIVE EXPENSES SALARIES AND EMPLOYEE BENEFITS
» SALARIES AND EMPLOYEE BENEFITS Continued PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS
» PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS Continued
» OTHER OPERATING INCOME - OTHERS
» OTHER OPERATING EXPENSES - OTHERS
» NON-OPERATING INCOMEEXPENSES - NET
» COMMITMENTS AND CONTINGENCIES 2002 12 Full Audited Financial Statements w Notes
» COMMITMENTS AND CONTINGENCIES Continued
» FOREIGN CURRENCY TRANSACTIONS 2002 12 Full Audited Financial Statements w Notes
» BANK GUARANTEES RECEIVED AND ISSUED AND STANDBY LETTERS OF CREDIT Continued
» RISK MANAGEMENT 2002 12 Full Audited Financial Statements w Notes
» RISK MANAGEMENT Continued 2002 12 Full Audited Financial Statements w Notes
» MATURITY PROFILE 2002 12 Full Audited Financial Statements w Notes
» NET OPEN POSITION 2002 12 Full Audited Financial Statements w Notes
» CAPITAL ADEQUACY RATIO 2002 12 Full Audited Financial Statements w Notes
» NON-PERFORMING EARNINGS 2002 12 Full Audited Financial Statements w Notes
» SEGMENT INFORMATION 2002 12 Full Audited Financial Statements w Notes
» SEGMENT INFORMATION Continued 2002 12 Full Audited Financial Statements w Notes
» CUSTODIAL AND TRUST OPERATIONS
» CUSTODIAL AND TRUST OPERATIONS Continued
» CHANNELING LOANS 2002 12 Full Audited Financial Statements w Notes
» RELATED PARTY 2002 12 Full Audited Financial Statements w Notes
» RELATED PARTY TRANSACTIONS Continued SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
» SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued
» SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued ECONOMIC CONDITIONS
» ECONOMIC CONDITIONS 2002 12 Full Audited Financial Statements w Notes
» ECONOMIC CONDITIONS Continued 2002 12 Full Audited Financial Statements w Notes
» GOVERNMENT GUARANTEE OF OBLIGATIONS OF LOCALLY INCORPORATED BANKS
» SUBSEQUENT EVENTS SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING PRINCIPLES
» SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING PRINCIPLES
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