PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
61
13. INVESTMENTS IN SHARES OF STOCK continued
a. The details of investments in shares of stock are as follows continued: The details of investments in shares of stock as of December 31, 2005 are as follows continued:
Accumulated Equity
Investee Nature of
Percentage of in Retained Earnings
Companies Business
Ownership Cost
Accumulated Losses Carrying Value
Cost Method of Accounting: PT Semen Kupang
a
Manufacturing 59.70
45,023 45,023
PT Sri Thai
a
Manufacturing 21.60
23,055 23,055
Others each less than Rp3,889
Various 10,912
10,912 78,990
Total 141,364
Less: Allowance for possible losses 73,298
68,066
a These investments represent restructured loans through debt to equity participations Note 11B.g. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such
investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001.
b. Investments in shares of stocks by collectibility:
2006 2005
Current 85,815 68,739
Loss 72,680 72,625
Total 158,495 141,364
Less: Allowance for possible losses 73,625
73,298 84,870 68,066
c. Movements of allowance for possible losses on investments in shares of stocks:
2006 2005
Balance at beginning of year 73,298
78,145 Provision during the year Note 36
327 4,847
Balance at end of year 73,625 73,298
Management believes that the allowance for possible losses on investments in shares of stock is adequate.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
62
14. PREMISES AND EQUIPMENT
2006 2005
CostValuation 8,101,913 8,142,270
Less: Accumulated depreciation and amortization 3,392,670
2,836,857
Net book value 4,709,243 5,305,413
Certain premises and equipment were revalued in 1979, 1987 and 2003. Movements from January 1, 2006
Beginning Ending
to December 31, 2006 Balance
Additions Deductions
Reclassifications Balance
Cost Valuation
Direct ownership Land
2,824,925 6,725
- 227,547
2,604,103 Buildings
1,463,485 11,233
1,226 67,060
1,540,552 Furnitures, fixtures, office
equipment and computer equipmentsoftware
3,510,938 107,065
29,418 128,925
3,717,510 Vehicles
70,737 4,267
1,617 209
73,178 Construction in progress
272,185 134,557
47,322 192,850
166,570 8,142,270
263,847 79,583
224,621 8,101,913
Accumulated Depreciation and
Amortization Direct ownership
Buildings 737,114
84,805 348
21,328 800,243
Furnitures, fixtures, office equipment and computer
equipmentsoftware 2,065,724
513,860 29,110
- 2,550,474
Vehicles 34,019
9,693 1,550
209 41,953
2,836,857 608,358
31,008 21,537
3,392,670 Net book value
Direct ownership Land
2,604,103 Buildings
740,309 Furniture, fixtures, office equipment and computer equipmentsoftware
1,167,036 Vehicles
31,225 4,542,673
Construction in progress 166,570
4,709,243
Reclassified to abandoned property.
Construction in progress as of December 31, 2006 is comprised of:
Product and license - Core Banking System 79,562
Buildings 30,851
Others 56,157
166,570
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
63
14. PREMISES AND EQUIPMENT continued
