PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
14
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Preparation of the Consolidated Financial Statements The consolidated financial statements of Bank Mandiri and Subsidiaries have been prepared in
conformity with the Statement of Financial Accounting Standards SFAS No. 31 Revised 2000, “Accounting for the Banking Industry” and other generally accepted accounting principles
established by the Indonesian Institute of Accountants and, where applicable, with prevailing banking industry practices and accounting and reporting guidelines prescribed by the Indonesian
banking regulatory authority.
The consolidated financial statements have been prepared on the historical cost and accrual basis of accounting, except for trading and available for sale securities and Government recapitalization
bonds and derivative receivables and payables which are stated at fair value, hedge bonds which are stated at indexed value, certain investments in shares of stock which are accounted for under
the equity method, and certain premises and equipment which have been revalued.
The consolidated statements of cash flows are presented under the direct method which classifies cash receipts and payments on the basis of operating, investing and financing activities. For the
purpose of the consolidated statements of cash flows, cash equivalents include cash on hand, current accounts with Bank Indonesia and current accounts with other banks.
b. Principles of Consolidation The consolidated financial statements include the financial statements of Bank Mandiri and its
majority-owned or controlled Subsidiaries. Significant inter-company balances and transactions have been eliminated.
Subsidiaries included in the consolidated financial statements are as follows:
Percentage of Ownership Name of subsidiary
Nature of Business Domicile
June 30, 2004 June 30, 2003 April 30, 2003
Bank Mandiri Europe Limited BMEL Commercial Banking
London 100.00
100.00 100.00
PT AXA Mandiri Financial Services formerly PT Asuransi Jiwa Mandiri
Insurance Jakarta
49.00 100.00
100.00 PT Bank Syariah Mandiri BSM
Syariah Banking Jakarta
99.99 99.99
99.99 PT Usaha Gedung Bank Dagang Negara
Property Management Jakarta
99.00 99.00
99.00 PT Bumi Daya Plaza
Property Management Jakarta
93.33 93.33
93.33 PT Mandiri Sekuritas
Investment Banking Jakarta
95.68 95.68
95.68 51 ownership interest was sold to National Mutual Fund International Pty. Ltd., a member of the AXA Group effective November 5, 2003,
therefore, the financial statements of PT AXA Mandiri Financial Services as of June 30, 2004 were not consolidated.
BMEL was incorporated on June 22, 1999 under the Companies Act 1985 of the United Kingdom. It was established from the conversion of Bank Exim London Branch to a subsidiary effective
July 31, 1999. BMEL was mandated to act as a commercial bank to represent the interests of Bank Mandiri. The registered office of BMEL is in London, United Kingdom.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
15
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
