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
95
29. TAXATION continued
e. Deferred tax assets The tax effects from significant temporary differences between commercial and tax bases are as
follows:
June 30, 2004 June 30, 2003
April 30, 2003
Bank Mandiri
Deferred tax assets: Allowance for estimated losses on
commitments and contingencies 174,812
465,109 446,489
Allowance for possible loan losses 821,384
1,215,356 1,267,171
Allowance for possible losses on earning assets other than loans
685,701 615,761
624,627 Allowance for possible losses arising
from legal cases 305,871
410,433 428,627
Provision for personnel expenses 206,682
401,658 380,316
2,194,450 3,108,317
3,147,230 Tax losses carried forward
- 9,422
3,339,207 Deferred tax assets
2,194,450 3,117,739
6,486,437 Valuation
allowance -
9,422 3,339,207
Net deferred tax assets 2,194,450
3,108,317 3,147,230
Deferred tax liabilities: Net book value of premises and equipment
33,288 23,066
24,164 Mark to market of securities
880 110,906
200,196 Net deferred tax assets-Bank Mandiri only
2,160,282 2,974,345
2,922,870 Net deferred tax assets - Subsidiaries
1,434 1,201
1,098
Total consolidated deferred tax assets - net 2,161,716
2,975,546 2,923,968
Management believes that the valuation allowances relating to deferred tax assets as of June 30, 2004 and 2003, and April 30, 2003 are adequate.
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
96
30. OTHER LIABILITIES
June 30, 2004 June 30, 2003
April 30, 2003
Rupiah: Provision for post-employment benefits Note 44
393,020 674,062
674,062 Accrued bonuses and employee incentives
161,858 504,344
489,963 Unearned income
148,514 167,933
247,143 Provision for possible losses on legal cases
203,889 147,062
147,062 Guarantee deposits
184,066 123,258
116,717 Provision arising from obligations from
investments in shares of stock 57,543
110,513 110,513
Inter-branch accounts - net 73,828
- 863,816
Accrued dividends, ‘PUKK’ fund, environmental fund, directors’ and commissioners’ bonuses
and incentive
bonuses -
- 1,929,841
Accrued expenses for Government premium
guarantees -
- 135,554
Others 1,453,478
1,665,410 2,811,604
2,676,196 3,392,582
7,526,275 Foreign Currency:
Provision for possible losses on legal cases 815,682
1,221,048 1,281,694
Guarantee deposits 645,235
583,445 638,822
Unearned income 208,481
124,764 34,930
Inter-branch accounts - net -
1,014,645 -
Others 1,696,179
878,888 424,325
3,365,577 3,822,790
2,379,771 6,041,773
7,215,372 9,906,046
As of June 30, 2004, Bank Mandiri has implemented an accounting policy to recognize provision for post- employment benefits in accordance with Labor Law No. 13 year 2003 UU No. 132003 amounting to
Rp393,020 based on an independent actuarial calculation. As of June 30, 2003 and April 30, 2003, the Bank recognized provisions for employee benefits and service entitlements in accordance with the
Decree of the Minister of Manpower No. Kep-150Men2000 KepMen 150 dated June 20, 2000 Note 44.
Movements of certain provisions for the six-month period ended June 30, 2004 were as follows:
Provision Arising
Provision for Provision for
from Obligations Possible Losses
Post-Employment from Investments on Legal Cases
Benefits in Shares of Stocks
_ Balance at beginning of period
936,473 361,453
57,543 Provision during the period
- 31,567
- Utilization during the period
339 -
- Others
83,437 -
- _
Balance at end of period 1,019,571
393,020 57,543
Includes foreign currency translation effect.
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
97
30. OTHER LIABILITIES continued
