PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
33
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
y. Share Options The Bank has granted stock options to the Directors and Senior Management at certain levels and
based on certain criteria under the Management Stock Option Plan MSOP. Stock compensation cost is calculated at the grant date using the fair value of the stock options and is recognized as part of
salaries and employee benefits expense, over the vesting period of the stock options based on graded vesting. The accumulated stock compensation costs are recognized as ‘Share Options’ in the
shareholders’ equity section. The fair value of the stock options granted is based on an independent actuary’s valuation report
calculated using the Black-Scholes option pricing model.
z. Earning Per Share
Earnings per share is calculated by dividing the consolidated net profit at end of year with the weighted average number of shares issued and fully paid-up during the year.
Net income used in calculating the basic earnings per share was Rp5,312,821 and Rp4,346,224 for the years ended December 31, 2008 and 2007, respectively. The weighted-average number of
outstanding shares used in computing the basic earnings per share as of December 31, 2008 and 2007 totaled 20,874,991,622 shares and 20,717,958,049 shares, respectively. The weighted-average
number of outstanding shares used in computing the basic earnings per share as of December 31, 2008 has been adjusted to reflect the changes in issued shares as a result of the conversion of share
option Note 32. The weighted-average number of outstanding shares used in computing diluted earnings per share
has been adjusted to reflect the changes in issued shares as a result of the conversion of share options Notes 31a and 32.
The weighted-average number of outstanding shares used in computing the diluted earnings per share as of December 31, 2008 and 2007 totaled 20,929,439,763 shares and 20,863,423,441 shares,
respectively.
2008 2007
The weighted-average shares - Basic 20,874,991,622
20,717,958,049 Adjustment on dilutive common shares:
MSOP Stage I 4,225,205
17,423,024 MSOP Stage II
784,387 1,428,752
MSOP Stage III 49,438,549
126,613,616
The weighted-average number of outstanding shares - Dilutive 20,929,439,763
20,863,423,441
aa. Segment Information Bank Mandiri and its Subsidiaries have presented financial information by nature of business primary
segment and by geographical area secondary segment. The primary segment is divided into banking, syariah banking, securities, insurance and others, while the secondary segment is divided
into Indonesia domestic, Asia, West Europe, Pacific Cayman andor others Note 49.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
34
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
ab. Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted
accounting principles requires management to make estimations and assumptions that affect the amounts reported therein. Due to the inherent uncertainty in making estimates, actual results reported
in future periods may be based on amounts which differ from those estimates.
ac. Revised Statements of Financial Accounting Standards
The following is a summary of the revised Statements of Financial Accounting Standards PSAK issued by the Indonesian Institute of Accountants but not yet effective in 2008:
a. PSAK No. 50 Revised 2006, “Financial Instruments: Presentation and Disclosures” contains the requirements for the presentation of financial instruments and identifies the information that
should be disclosed. The presentation requirements apply to the classification of financial instruments, from the perspective of the issuer, into financial assets, financial liabilities and equity
instruments; the classification of related interests, dividends, losses and gains; and the circumstances in which financial assets and financial liabilities should be offset. This standard
requires the disclosure, among others, of information about factors that affect the amount, timing and certainty of an entity’s future cash flows relating to financial instruments and the accounting
policies applied to those instruments. PSAK No. 50 Revised 2006 supersedes PSAK No. 50, “Accounting for Certain Investment Securities” and applied prospectively for period starting on or
after Januari 1, 2009. The Financial Accounting Standards Board of the Indonesian Institute of Accountants DSAK IAI changed the effective implementation date of PSAK No. 50 Revised
2006, which initially starting on January 1, 2009 to become effective on January 1, 2010 [per letter of DSAK IAI dated December 30, 2008 No. 1705DSAKIAIXII2008 Re: Announcement of
the Effective Date of PSAK No. 50 Revised 2006 and PSAK No. 55 Revised 2006]. Earlier application is permitted and should be disclosed.
b. PSAK No. 55 Revised 2006, “Financial Instruments: Recognition and Measurement”, establishes the principles for recognising and measuring financial assets, financial liabilities, and
some contracts to buy or sell non-financial items. This standard provides for the definitions and characteristics of a derivative, the categories of financial instruments, recognition and
measurement, hedge accounting and determination of hedging relationships, among others. PSAK No. 55 Revised 2006 this replaced PSAK No. 55: Derivative Instruments Accounting and
Hedging Relationship Activity and is applied prospectively for period starting on or after January 1, 2009. The Financial Accounting Standards Board of the Indonesian Institute of
Accountants DSAK IAI changed the effective implementation date of PSAK No. 55 Revised 2006, which initially starting on January 1, 2009 to become effective on January 1, 2010 [per
letter of DSAK IAI dated December 30, 2008 No. 1705DSAKIAIXII2008 Re: Announcement of the Effective Date of PSAK No. 50 Revised 2006 and PSAK No. 55 Revised 2006]. Earlier
application is permitted and should be disclosed.
The Bank Mandiri and Subsidiaries is still evaluating the effects of PSAK No. 50 Revised 2006 and PSAK No. 55 Revised 2006 of these revised PSAK and has not yet determined the related effects
on its consolidated financial statements.
3. CURRENT ACCOUNTS WITH BANK INDONESIA
2008 2007
Rupiah 12,770,724
26,829,332 United States Dollar
583,565 1,331,727
13,354,289 28,161,059
