CONSUMER FINANCING RECEIVABLES FS Bank Mandiri Tbk 311210 Eng
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 583 14. INVESTMENTS IN SHARES
a. The details of investments in shares are as follows:
2010 2009
2008
Equity method -
182,665 153,540
Cost method 7,533
6,289 6,289
Total 7,533
188,954 159,829
Less: Allowance for impairment losses 1,285
2,106 1,656
6,248 186,848
158,173
The details of investments in shares as at 31 December 2010 were as follows:
Investee Nature
Percentage of Carrying
Companies of Business
Ownership Amount
Cost Method: Westech Electronics
Trading and retail 5.50
1,244 Others each less than
Rp3,000 Various
3.99 - 10.00 6,289
Total 7,533
Less: Allowance for impairment losses 1,285
6,248
The investments are resulted from loan restructuring through debt to equity conversion Debt Equity Swap on 2 June 2010. In accordance with Bank Indonesia Regulation, the investments in shares are temporary investments, for maximum period 5 years. Therefore, the
investments are recorded using cost method without considering percentage of ownership started on 2 June 2010.
In August 2010, the Bank acquired additional 2 shares in PT AXA Mandiri Financial Services’. As a result, the Bank’s ownership in PT AXA Mandiri Financial Services increased to 51 and since
then it was consolidated into the Bank’s consolidated financial statements Note 1g.
The details of investments in shares as at 31 December 2009 were as follows:
Investee Nature
Percentage of Accumulated Equity
Carrying Companies
of Business Ownership
Cost on Net Income
Amount
Equity Method: PT AXA Mandiri Financial
Services Insurance
49.00 16,761
165,904 182,665
Cost Method: Others each less than
Rp3,000 Various
3.99 -10.00 6,289
- 6,289
Total 188,954
Less: Allowance for impairment losses 2,106
186,848
The details of investments in shares as at 31 December 2008 were as follows:
Investee Nature
Percentage of Accumulated Equity
Carrying Companies
of Business Ownership
Cost on Net Income
Amount
Equity Method: PT AXA Mandiri Financial
Services Insurance
49.00 16,761
136,779 153,540
Cost Method: Others each less than
Rp3,000 Various
3.99 - 10.00 6,289
- 6,289
Total 159,829
Less: Allowance for impairment losses 1,656
158,173
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 584 14. INVESTMENTS IN SHARES continued
a. The details of investments in shares are as follows: continued In 2008, temporary investments resulted from loan restructuring through Debt Equity Swap had
been written-off because the Bank has owned the investments for more than 5 five years. This is to comply with Bank Indonesia Regulations - PBI No. 72PBI2005 dated 20 January 2005
regarding Asset Quality Rating for Commercial Banks which has been amended by Bank Indonesia Regulation - PBI No. 112PBI2009 dated 29 January 2009.
b. Investments in shares by Bank Indonesia’s collectibility:
2010 2009
2008
Current 6,233
188,898 159,773
Doubtful 1,244
- -
Loss 56
56 56
Total 7,533
188,954 159,829
Less: Allowance for impairment losses 1,285
2,106 1,656
6,248 186,848
158,173
c. Movements of allowance for impairment losses on investments in shares:
2010 2009
2008
Balance at beginning of year 2,106
1,656 73,943
Allowance during the year Note 38 614
450 339
Write-offs -
- 72,626
Others 1,435
- -
Balance at end of year 1,285
2,106 1,656
Includes effect of foreign currency translation
Management believes that the allowance for impairment losses on investments in shares is adequate.