PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 522 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s.
Fixed Assets and Leased Assets continued
i. Fixed Assets continued Depreciation is calculated using the straight-line method over the estimated useful lives of the
assets as follows: Years
Buildings 20
Furniture, fixtures, office equipment and computer equipmentsoftware and vehicles 4-5
Fixed assets are derecognised upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising from derecognition of the asset calculated as
the difference between the net disposal proceeds and the carrying amount of the asset is included in consolidated statement of income in the year the asset is derecognised.
The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted prospectively if appropriate, at each financial year end.
Construction in progress is stated at cost and is presented as part of fixed assets. Accumulated costs are reclassified to the appropriate fixed assets account when the assets are substantially
complete and are ready for their intended use.
In accordance with SFAS No. 47, “Accounting for Land”, all cost and expense incurred in relation with the acquisition of the landright, such as license fee, survey and measurement cost, notary
fee and taxes, are deferred and presented separately from the cost of the landright. The deferred cost related to the acquisition of the landright was presented as part of Other Asset in the
consolidated balance sheet, and amortised over the period of the related landright using straight- line method.
In addition, SFAS No. 47 also states that landright is not amortised unless it meet certain required conditions.
SFAS No. 48, “Impairment of Assets” states that the carrying amounts of fixed assets are reviewed at each balance sheets date to assess whether they are recorded in excess of their
recoverable amounts and, when carrying value exceeds this estimated recoverable amount, assets are written down to their recoverable amount.
ii. Leased assets Effective 1 January 2008, the Statement of Financial Accounting Standard SFAS No. 30
revised 2007, “Leases” supersedes SFAS No. 30 1990 “Accounting for Leases”. Based on SFAS No. 30 revised 2007, the determination of whether an arrangement is, or contains a lease
is based on the substance of the arrangement at inception date and whether the fulfillment of the arrangement is dependent on the use of a specific asset and the arrangement conveys a right to
use the asset. Under this revised SFAS a lease that transfers substantially all the risk and rewards incidental to ownership of an assets is classified as finance lease. Moreover, leases
which do not transfer substantially the risks and reward incidental to ownership of the leased item are classified as operating leases.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 523 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued s.
Fixed Assets and Leased Assets continued
ii. Leased assets continued Based on SFAS No. 30 revised 2007, under a finance leases, Bank and Subsidiaries recognise
assets and liabilities in its consolidated balance sheet at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments, each determined
at the inception of the lease. Lease payment is apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the
lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Finance charges are reflected in the consolidated statement of income. Capitalised
leased assets presented under fixed assets are depreciated over the shorter of the estimated useful life of the assets and the lease term, if there is no reasonable certainty that the Bank will
obtain ownership by the end of the lease term.
Under an operating lease, the Bank recognise lease payments as an expense on a straight-line basis over the lease term.
t. Other Assets
Other assets include accrued income for interest, provision and commissions, receivables, prepaid taxes, prepaid expenses, repossessed assets, abandoned properties, inter-branch accounts and
others.
Repossessed assets represent assets acquired by Bank Mandiri and Subsidiaries, both from auction and non auction based on voluntary transfer by the debtor or based on debtor’s approval to
sell the collateral where the debtor could not fulfill their obligations to Bank Mandiri and Subsidiaries. Repossessed assets represent loan collateral acquired in settlement of loans and is
included in “Other Assets”.
Abandoned properties represent Bank and Subsidiaries’ fixed assets in form of property which was not used for Bank and Subsidiaries’ business operational activity.
Repossessed assets and abandoned properties are presented at their net realis able value. Net realisable value is the fair value of the repossessed assets less estimated costs of liquidating the
repossessed assets. Any excess of the loan balance over the value of the repossessed assets, which is not recoverable from the borrower, is charged to the allowance for possible losses.
Differences between the estimated realisable value and the proceeds from sale of the repossessed assets are recognised as current year’s gain or loss at the time of sale.
Expenses for maintaining repossessed assets and abandoned properties are recognised in the current year’s consolidated statement of income. The carrying amount of the repossessed assets is
impaired to recognise a permanent decrease in value of the repossessed asset. Any impairment occurred will be charged to the current year’s consolidated statement of income.
u. Obligation due Immediately
Obligations due immediately are recorded at the time of the obligations occurred from customer or other banks. Obligations due immediately are stated at the Bank’s and Subsidiaries obligations
amount.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 524 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued v. Deposits from Customers
Deposits from customers are the funds placed by customers excluding banks with the Bank based on a fund deposit agreements. Included in this account are demand deposits, savings deposits,
time deposits and other similar.
Demand deposits represent deposits of customers that may be used as instruments of payment, and which may be withdrawn at any time by cheque, automated teller machine card ATM or other
orders of payment or transfers. These are stated at nominal value.
Savings deposits represent deposits of customers that may only be withdrawn over the counter and via ATMs or funds transfers by SMS Banking, Phone Banking and Internet Banking when certain
agreed conditions are met, but which may not be withdrawn by cheque or other equivalent instruments. These are stated at nominal value.
Time deposits represent customers deposits that may only be withdrawn after a certain time based on the agreement between the depositor and the Bank. These are stated at the nominal amount set
forth in the certificates between the Bank and the holders of time deposits.
Included in demand deposits are wadiah demand and saving deposits. Wadiah demand deposits can be used as payment instruments and can be withdrawn any time using cheque and bilyet giro.
Wadiah demand and savind deposits earn bonus based on Bank’s policy. Wadiah saving and demand deposits are stated at the Bank’s liability amount.
w. Deposits from Other Banks
Deposits from other banks represent liabilities to local and overseas banks, in the form of demand deposits, savings deposits, inter-bank call money with original maturities of 90 days or less and time
deposits. Deposits from other banks are stated at the amount due to the other banks.
Included in the deposits from other banks are sharia deposits in form of wadiah deposits, unrestricted investment which comprise mudharabah savings and mudharabah time deposits, and
Certificates Mudharabah Investment Bank SIMA. SIMA is an investment certificate issued by the BSM which adopts profit sharing practice and only traded among banks. SIMA financing period
ranges from 1 – 6 months.
x. Marketable Securities Issued
Marketable securities issued by the Bank and its subsidiaries, include floating rate notes, medium- term notes and travelers’ cheques, are recorded at their nominal value. Under Bank Indonesia
requirements, deposits from other banks with periods of more than 90 days are also presented as marketable securities issued. Premiumdiscount from the issuance of floating rate notes and
medium term notes are recognised as deferred incomeexpense and amortised using the straight line method until the maturity date.
y. Fund Borrowings
Fund borrowings represent funds received from other banks, Bank Indonesia or other parties with the obligation of repayment in accordance with the requirements of the loan agreement.
