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
52
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
o. Loans and syariah receivablesfinancing continued
Murabahah receivables are the financing of goods by confirming purchase price to a buyer and the buyer pays it with a higher price as an agreed profit. Murabahah receivables are stated at the
balance of the receivable less deferred margin and allowance for possible losses.
Istishna receivables are the financing of goods in the form of manufacturing the ordered goods with the agreed criteria and specification by both of orderer or buyer Mustashni and manufacturer
or seller Shani. Istishna receivables are presented based on the outstanding billings less allowance for possible losses.
Qardh receivables are a borrowing at the condition that the borrower should repay the loan at specified period of time. The Subsidiary will obtain a fee ujrah from this transaction, which is
recognised upon receipt. Qardh receivables included Hawalah and Rahn financing agreement. Hawalah is transfer of debts from debtors to other party Subsidiary which obligate to bear or paid.
Rahn represents the mortgage of goods or assets owned by the customer for an equivalent amount of money. Assets or goods mortgaged are appraised based on market value, less a
certain deduction percentage. The Subsidiary will obtain a fee ujrah, which is recognised upon receipt. Qardh receivables are stated at its outstanding balance less allowance for possible losses.
Loans are classified as financial assets in loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
Loan restructuring Loan restructuring may involve a modification of the terms of the loans, conversion of loans into
equity or other financial instruments andor a combination of both. Losses on loan restructurings due to modification the terms of the loans are recognised as part of
allowance for impairment losses only if the present value of total future cash receipts specified by the new terms of the loans including receipts designated as interest and loan principal, are less
than the carrying amount of loans before restructuring.
For loan restructurings which involve a conversion of loans into equity or other financial instruments, a loss on loan restructuring is recognised as part of allowance for impairment losses
only if the fair value of the equity or financial instruments received, deducted by estimated expenses to sell the equity or other financial instruments, is less than the carrying amount of loans.
Overdue interest, which is capitalised to loans under new restructuring agreements, is recorded as deferred interest income and is amortised into income proportionately based on the amount of
capitalised interest to the loan principal upon credit collection.
p. Consumer financing receivables
Subsidiary’s consumer financing receivables are recognised initially at fair value, added with directly attributable transaction costs and deducted by yield enhancing income, and subsequently
measured at amortised cost using the effective interest rate method.
Subsidiary’s consumer financing receivables are classified as loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
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
53
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
p. Consumer financing receivables continued
Early termination is treated as a cancellation of an existing contract and the resulting gain or loss is credited or charged to the current year’s consolidated statement of profit or loss and other
comprehensive income at the transaction date.
Credit restructuring can be done by over contract, asset replacement, repay back, change the due date, change the tenor andor increase the down payment.
Subsidiary’s unearned consumer financing income is the difference between total installments to be received from customers and the total financing which is recognised as income over the term of
the contract using effective interest rate.
Consumer financing receivables are stated net of joint financing receivables where joint financing providers bear credit risk in accordance with its portion without recourse, unearned consumer
financing income and allowance for impairment losses.
Joint financing receivables where jointly financed with other parties, bear credit risk in accordance with their financing portion without recourse and presented on a net basis in the consolidated
statement of financial position. Consumer financing income and interest expense related to joint financing without recourse are also presented on a net basis in the consolidated statement of profit
or loss and other comprehensive income.
For joint financing without recourse, Subsidiary has the right to set higher interest rates to customers than those as stated in the joint financing agreements with joint financing providers.
The difference is recognised as revenue and disclosed as “Consumer financing income”.
q. Net investment in lease financing
Net investment in lease financing represent lease receivable plus the residual value which is earned at the end of the lease period and net of unearned lease income, security deposits and the
allowance for impairment losses. The difference between the gross lease receivable and the present value of the lease receivable is recognised as unearned lease income. Unearned lease
income is allocated to current year consolidated statement profit or loss and other comprehensive income based on a constant rate of return on net investment using the effective interest rate.
The lessee has the option to purchase the leased asset at the end of the lease period at a price mutually agreed upon at the commencement of the agreement.
Early termination is treated as a cancellation of an existing contracts and the resulting gain or loss is recognized in the current year consolidated statement of profit or loss and other comprehensive
income.
Net investment in lease financing are classified as loans and receivables. Refer to Note 2c to the accounting policy for loans and receivables.
