PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
59
12. ACCEPTANCES RECEIVABLE continued
d Movements of Allowance for Possible Losses on Acceptances Receivable:
2006 2005
Balance at beginning of period 429,092
147,286 Provisionreversal during the period Note 37
269,897 414,024
Others 31,156
10,839
Balance at end of period 128,039
572,149
Includes effect of foreign currency translation.
The minimum allowance for possible losses on acceptances receivable under the guidelines prescribed by Bank Indonesia, as of June 30, 2006 and 2005 is Rp128,039 and Rp572,149,
respectively. Management believes that the allowance for possible losses on acceptances receivable is adequate.
13. INVESTMENTS IN SHARES OF STOCK
a. The details of investments in shares of stock are as follows:
2006 2005
Equity method of accounting 70,895
56,438 Cost method of accounting
78,989 78,013
Total 149,884
134,451 Less: Allowance for possible losses
73,384 78,599
76,500 55,852
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
60
13. INVESTMENTS IN SHARES OF STOCK continued
a. The details of investments in shares of stock are as follows: continued The details of investments in shares of stock as of June 30, 2006 are as follows:
Accumulated Equity
Investee Nature
Percentage of in Retained Earnings
Companies of Business
Ownership Cost
Accumulated Losses Carrying Value
Equity Method of Accounting: PT AXA Mandiri Financial
Services Insurance
49.00 16,761
54,133 70,894
PT Sarana Bersama Pembiayaan
Indonesia Holding
company 34.00
2,278 2,277
1 70,895
Cost Method of Accounting: PT Semen Kupang
a
Manufacturing 59.70
45,023 45,023
PT Sri Thai
a
Manufacturing 21.60
23,055 23,055
Others each less than Rp3,889
Various 10,911
10,911 78,989
Total 149,884
Less: Allowance for possible losses 73,384
76,500
a These investments represent restructured loans through debt to equity participations Note 11B.g. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such
investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001.
The details of investments in shares of stock as of June 30, 2005 are as follows:
Accumulated Equity
Investee Nature of
Percentage of in Retained Earnings
Companies Business Ownership
Cost Accumulated Losses
Carrying Value Equity Method of Accounting:
PT AXA Mandiri Financial Services
Insurance 49.00
16,761 34,518
51,279 PT Sarana Bersama
Pembiayaan Indonesia
Holding company
34.00 2,278
2,881 5,159
56,438
Cost Method of Accounting: PT Semen Kupang
a
Manufacturing 59.70
45,023 45,023
PT Sri Thai
a
Manufacturing 21.60
23,055 23,055
Others each less than Rp3,889
Various 9,935
9,935 78,013
Total 134,451
Less: Allowance for possible losses 78,599
55,852
a These investments represent restructured loans through debt to equity participations Note 11B.g. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such
investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
61
13. INVESTMENTS IN SHARES OF STOCK continued
