PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
17
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
a. Basis of Preparation of the Consolidated Financial Statements continued 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 and cash equivalents include cash on
hand, current accounts with Bank Indonesia and current accounts with other banks. The financial statements of a subsidiary company engaged in syariah banking have been prepared in
conformity with PSAK No.59 regarding the Accounting for Syariah Banking and Accounting Guidelines for Indonesian Syariah Banking PAPSI.
b. Principles of Consolidation The consolidated financial statements include the financial statements of Bank Mandiri and its majority-
owned or controlled Subsidiaries. Control is presumed to exist where more than 50 of a Subsidiary’s voting power is controlled by Bank Mandiri, or Bank Mandiri is able to govern the financial and
operating policies of a Subsidiary, or control the removal or appointment of the majority of a Subsidiary’s board of directors. Significant inter-company balances and transactions have been
eliminated. Subsidiaries included in the consolidated financial statements as of December 31, 2006 and 2005 are
as follows:
Name of Subsidiary Nature of Business
Domicile Percentage of Ownership Bank Mandiri Europe Limited BMEL
Commercial Banking London
100.00 PT Bank Syariah Mandiri BSM
Syariah Banking Jakarta
99.99 PT Usaha Gedung Bank Dagang Negara
Property Management Jakarta
99.00 PT Mandiri Sekuritas
Securities Jakarta
95.69 PT Bumi Daya Plaza
Property Management Jakarta
93.33
Bank Mandiri Europe Limited 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 Syariah Mandiri BSM was established in the Republic of Indonesia on August 10, 1973 under the name of PT Bank Susila Bhakti, a subsidiary of BDN, based on notarial deed No. 146 of R.
Soeratman. The Company’s name changed several times, the latest of these changes was based on notarial deed No. 23 of Sutjipto, S.H. dated September 8, 1999, whereby its name was changed to PT
Bank Syariah Mandiri. The Company is engaged in banking activities in accordance with “Syariah” banking principles.
PT Usaha Gedung Bank Dagang Negara was established in the Republic of Indonesia on October 29, 1971 based on notarial deed No. 104 of Abdul Latief, S.H. dated October 29, 1971. The Company is
engaged in property management and office rental activities, which involve the Company’s and its Subsidiaries’ offices, and other offices. It owns 25 of the share capital of PT Pengelola Investama
Mandiri PIM, a company primarily established to manage the investments in shares of stock of Bank Mandiri.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
18
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
