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
40
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets continued
a Financial assets carried at amortised cost continued In evaluating impairment for loans, the Bank determines loan portfolio into these three
categories: 1.
Loans which individually have significant value and if impairment occurred will have material impact to the consolidated financial statements, i.e. loans with Gross Annual
Sales GAS Corporate and Commercial, as well as loans with GAS outside Corporate and Commercial with outstanding balance more than Rp5,000;
2. Loans which individually have no significant value, i.e. loans with GAS Business,
Micro and Consumer with outstanding balance is less or equal to Rp5,000; and 3.
Restructured loans. Bank determines loans to be evaluated for impairment through individual evaluation if one
of the following condition is met: 1.
Loans which individually have significant value and objective evidence of impairment; or
2. Restructured loans which individually have significant value.
Bank determines loans to be evaluated for impairment through collective evaluation if one of the following condition is met:
1. Loans which individually have significant value and there are no objective evidence of
impairment; or 2.
Loans which individually have insignificant value; or 3.
Restructured loan which individually have insignificant value. Individual impairment calculation
The amount of the impairment is measured as the difference between the financial asset’s carrying amount and the present value of estimated future cash flows excluding future
impairment losses that have not been incurred discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the allowance
for impairment losses account and the amount of the loss is recognised in the consolidated statement of profit or loss and other comprehensive income. If a loan or held-
to-maturity financial assets has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
The calculation of the present value of the estimated future cash flows of a collateralised financial asset reflects the cash flows that may result from foreclosure less costs for
obtaining and selling the collateral, whether or not foreclosure is probable.
The Bank uses a fair value of collateral method as a basis for future cash flow if, one of the following conditions is met:
1. Loans are collateral dependent, i.e. if source of loans repayment comes only from the
collateral; or 2.
Foreclosure of collateral is most likely to occur and supported with legal binding aspect.
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
41
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets continued
