These consolidated financial statements are originally issued in Bahasa.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
p. Consumer financing receivables continued
Early termination is treated as a cancellation of an existing contract and the resulting gain or loss is credited or charged to the current year’s consolidated statement of profit or loss and other
comprehensive income at the transaction date.
Credit restructuring can be done by over contract, asset replacement, repay back, change the due date, change the tenor andor increase the down payment.
Subsidiary’s unearned consumer financing income is the difference between total installments to be received from customers and the total financing which is recognised as income over the term of
the contract using effective interest rate.
Consumer financing receivables are stated net of joint financing receivables where joint financing providers bear credit risk in accordance with its portion without recourse, unearned consumer
financing income and allowance for impairment losses.
Joint financing receivables where jointly financed with other parties, bear credit risk in accordance with their financing portion without recourse and presented on a net basis in the consolidated
statement of financial position. Consumer financing income and interest expense related to joint financing without recourse are also presented on a net basis in the consolidated statement of profit
or loss and other comprehensive income.
For joint financing without recourse, Subsidiary has the right to set higher interest rates to customers than those as stated in the joint financing agreements with joint financing providers.
The difference is recognised as revenue and disclosed as “Consumer financing income”.
q. Net investment in lease financing
Net investment in lease financing represent lease receivable plus the residual value which is earned at the end of the lease period and net of unearned lease income, security deposits and the
allowance for impairment losses. The difference between the gross lease receivable and the present value of the lease receivable is recognised as unearned lease income. Unearned lease
income is allocated to current year consolidated statement profit or loss and other comprehensive income based on a constant rate of return on net investment using the effective interest rate.
The lessee has the option to purchase the leased asset at the end of the lease period at a price mutually agreed upon at the commencement of the agreement.
Early termination is treated as a cancellation of an existing contracts and the resulting gain or loss is recognized in the current year consolidated statement of profit or loss and other comprehensive
income.
Net investment in lease financing are classified as loans and receivables. Refer to Note 2c to the accounting policy for loans and receivables.
These consolidated financial statements are originally issued in Bahasa.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
54
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
r. Fixed Assets, leased assets and intangible assets
i. Fixed assets and software
Fixed assets except for land is stated at cost less accumulated depreciation and impairment losses. Such cost includes the cost of replacing part of the fixed assets when that cost is
incurred, if the recognition criteria are met. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the fixed assets as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs that do not have future economics benefit are recognised in the consolidated statement of profit or loss and other comprehensive
income as incurred. Software is recognised as intangible assets.
Depreciation and amortisation is calculated using the straight-line method over the estimated useful lives of fixed assets and intangible assets as follows:
Years
Buildings 20
Furniture, fixtures, office equipment and computer and vehicles 4-5
Software 5
Fixed assets are derecognised upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising from derecognition of the asset calculated as
the difference between the net disposal proceeds and the carrying amount of the asset is included in consolidated statement of profit or loss and other comprehensive income in the year
the asset is derecognised.
The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted prospectively if appropriate, at each financial year end.
Construction in progress is stated at cost and presented as part of fixed assets. Accumulated costs are reclassified to the appropriate fixed assets account when the assets are substantially
complete and ready for their intended use.
In accordance with SFAS 16 revised 2011 Fixed Assets and ISAK 25 Land Rights. The cost of land rights in the form of right to cultivate, right to build and use rights are recognised as fixed
assets. The acquisition cost is the cost that are directly attributable to obtain land rights, including the cost of legal rights to the land when the land was first acquired.
Land rights in the form of right to cultivate, right to build and use rights are not depreciated, unless there is evidence to indicate that the extension or renewal of land rights is likely to or
definitely not obtained.
SFAS No. 48 Revised 2014, “Impairment of Assets” states that the carrying amounts of fixed assets are reviewed at each consolidated statement of financial position date to assess whether
they are recorded in excess of their recoverable amounts. When carrying value exceeds this estimated recoverable amount, assets are written down to their recoverable amount.
