PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5113 29. TAXATION continued
e. Deferred tax assets - net
Deferred tax arises from temporary differences between book value based on commercial and tax calculation are as follows:
2011 Beginning
balance Credited
charged to consolidated
statement of income
Charged to equity
Realisation of provision
for decrease in value
Ending balance
Bank Mandiri Deferred tax assets:
Loans write- off until 2008 2,536,635
145,969 -
507,327 1,883,339
Allowance for impairment loan losses 1,061,120
239,319 -
212,224 609,577
Allowance for impairment losses on financial assets other than loans
672,978 234,167
- 134,596
304,215 Provision for post-employment benefit expense, provision
for bonuses, leave and holiday THR entitlements 626,272
38,961 -
125,254 539,979
Allowance for estimated losses arising from legal cases 143,670
50 -
28,734 114,886
Allowance for possible losses on other assets 40,365
32,292 -
8,073 -
Estimated losses on commitments and contingencies 92,016
27,280 -
18,403 46,333
Allowance for possible losses on abandoned properties 43,937
1,210 -
8,787 33,940
Allowance for possible losses on repossessed assets 29,977
21,690 -
5,995 2,292
Accumulated losses arising from difference in net realisable value of abandoned properties
2,587 -
- 518
2,069 Accumulated losses arising from difference in
net realisable value of repossessed assets 2,532
53 -
506 1,973
Unrealised losses on increasedecrease in fair value of marketable securities and
Government Bonds available for sale 126,624
- 29,786
25,326 131,084
Deferred tax assets 5,378,713
663,069 29,786
1,075,743 3,669,687
Deferred tax liabilities: Unrealised gainlosses on increasedecrease in
fair value of marketable securities and government bonds fair value through profit or loss
27,235 19,268
- 5,447
2,520 Net book value of fixed assets
23,450 220
- 4,690
18,540
Deferred tax assets - Bank Mandiri only 5,328,028
643,581 29,786
1,065,606 3,648,627
Provision for decrease in deferred tax assets 1,065,606
-
Net deferred tax assets - Bank Mandiri only 4,262,422
3,648,627
Net deferred tax assets - Subsidiaries 138,666
151,785 Total consolidated deferred tax assets - net
4,401,088 3,800,412
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5114 29. TAXATION continued
e. Deferred tax assets - net continued
2010 Beginning
balance Credited
charged to consolidated
statement of income
Charged to equity
Adjustment on the initial
implementation of SFAS 50 55
Revised 2006 Ending
balance Deferred tax assets:
Loans write- off until 2008 2,894,873
358,238 -
- 2,536,635
Allowance for impairment loan losses 1,239,895
163,120 -
15,655 1,061,120
Allowance for impairment losses on financial assets other than loans
609,493 102,610
- 39,125
672,978 Provision for post-employment benefit expense, provision
for bonuses, leave and holiday THR entitlements 769,586
143,314 -
- 626,272
Allowance for estimated losses arising from legal cases 105,056
38,614 -
- 143,670
Allowance for possible losses on other assets 100,000
59,635 -
- 40,365
Estimated losses on commitments and contingencies 81,641
10,375 -
- 92,016
Allowance for possible losses on abandoned properties 47,095
3,158 -
- 43,937
Allowance for possible losses on repossessed assets 29,205
772 -
- 29,977
Accumulated losses arising from difference in net realisable value of abandoned properties
3,306 719
- -
2,587 Accumulated losses arising from difference in
net realisable value of repossessed assets 2,541
9 -
- 2,532
Unrealised losses on increasedecrease in fair value of marketable securities and
Government Bonds available for sale 86,947
- 61,387
101,064 126,624
Deferred tax assets 5,969,638
575,822 61,387
46,284 5,378,713
Deferred tax liabilities: Unrealised gainlosses on increasedecrease in
fair value of marketable securities and government bonds fair value through profit or loss
3,899 23,336
- -
27,235 Net book value of fixed assets
25,697 2,247
- -
23,450
Deferred tax assets - Bank Mandiri only 5,940,042
596,911 61,387
46,284 5,328,028
Provision for decrease in deferred tax assets -
1,065,606 Net deferred tax assets - Bank Mandiri only
5,940,042 4,262,422
Net deferred tax assets - Subsidiaries 74,043
138,666
Total consolidated deferred tax assets – net 6,014,085
4,401,088
Deferred tax assets are calculated using applicable tax rate or substantially enacted tax rate at consolidated statement of financial position balance sheet dates.
After completion of the Limited Public Offering with Pre-emptive Right Issue in December 2010, the shareholding composition of Bank Mandiri are 60 owned by the Republic of Indonesia and 40
owned by the public. Fulfilment of the 40 public ownership criteria makes it highly probable the Bank will obtain the 5 reduction in income tax rates starting fiscal year 2011 to become 20.
Therefore, as at 31 December 2011, the Bank has booked a provision for impairment in deferred tax assets in amount of Rp1,065,606 as all of the deferred tax assets will be realised in 2011 or onwards
with income tax rates of 20.
As at 31 December 2011, Bank Mandiri has fullfiled three requirements above refer to Note 29c. Therefore the provision for decrease in deferred tax assets had been set-off with the related balance
of deferred tax assets. Management believes that it is possible that future taxable income will be available against the
temporary difference, which results in deferred tax assets, can be utilised.
