PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2013 AND 2012
Expressed in millions of Rupiah, unless otherwise stated
Appendix 535 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
s. Investments in Shares continued
Temporary investment is written-off from the consolidated statement of financial position if it is held for more than 5 years in accordance with Bank Indonesia Regulation No. 72PBI2005 dated
20 January 2005 on “Asset Quality Ratings for Commercial Banks”, as amended by Bank Indonesia
Regulation No. 112PBI2009 dated 29 January 2009. Since 24 October 2012, Group follows Bank Indonesia Regulation No. 141
5PBI2012 dated 24 October 2012 Regarding “Asset Quality Rating for Commercial Banks”.
Investment in shares with ownership below 20 are classified as financial assets available for sale. Refer to Note 2c for the accounting policy of financial assets available for sale.
Goodwill is recognised, when there is a difference between the acquisition cost and the Bank’s portion of the fair value of identified assets and liabilities at the acquisition date. Goodwill is
presented as other assets. Starting 1 January 2011, with the effective implementation of SFAS No. 22
“Business Combination”, Goodwill arised from acquisition prior to 1 January 2011 is not amortised but subject to regular impairment assessment. Prior to 1 January 2011, Goodwill is amortised as
expense over the period using the straight-line method, unless there is other method considered more appropriate in certain conditions. The Goodwill amortisation period is 5 five years, but a
longer amortisation period may be applied with maximum 20 years period with appropriate basis.
t. Allowance for Possible Losses on Non-Earning Assets Non-
earning assets of Bank Mandiri and the Subsidiaries’ assets consist of repossessed assets, abandoned properties, inter-office accounts and suspense accounts.
The Bank provided an allowance for impairment of collateral confiscated and abandoned property to the value of the lower of carrying amount and fair value net of costs to sell. As for the inter-office
account and suspense account, the value of the lower of carrying value and the recovery value.
u. Acceptance Receivables and Payables
Acceptance receivables are classified as financial assets in loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
Acceptance payables are classified as financial liabilities at amortised cost. Refer to Note 2c for the accounting policy for financial liabilities at amortised cost.
v. Other Assets Other assets include accrued income for interest, provision and commissions, receivables,
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.
