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
41
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets continued
a Financial assets carried at amortised cost continued Collective impairment calculation
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit risk characteristics such by considering credit segmentation and
past-due status. Those characteristics are relevant to the estimation of future cash flows for groups of such assets which indicate debtors or counterparties’ ability to pay all
amounts due according to the contractual terms of the assets being evaluated.
Future cash flows in a group of financial assets that are collectively evaluated for impairment are estimated on the basis of historical loss experience for assets with credit
risk characteristics similar to those in the Bank. Historical loss experience is adjusted on the basis of current observable data to reflect the effects of current conditions that did not
affect the period on which the historical loss experience is based and to remove the effects of conditions in the historical period that do not currently exist.
The Group uses statistical model analysis methods, consists of roll rates analysis method and migration analysis method for financial assets impairment which are collectively
assessed, using at the minimum of 3 three years historical data.
In migration analysis method, management determines 12 months as the estimated and identification period between a loss occuring for each identified portfolio, except for Micro
banking segment in which the loss identification period used is 9 months.
When a loan is uncollectible, it is written off against the related allowance for loan impairment losses. Such loans are written off after all the necessary procedures have
been completed and the amount of the loss has been determined. Impairment charges relating to loans and marketable securities in held-to-maturity and loans and receivables
categories are classified into “allowance for impairment losses”.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised such
as an improvement in the debtor’s credit rating, the previously recognised impairment loss is reversed by adjusting the allowance account. The amount of the impairment reversal is
recognised in the consolidated statement of profit or loss and other
comprehensive income.
Subsequent recoveries of loans written off in the current year are credited to the allowance for impairment losses account.
Subsequent recoveries of loans written off in previous year, are recognised as other operating income.
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
42
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets continued
