Value Added Tax VAT on Bank Syariah Mandiri BSM Murabahah Financing Transactions

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012 Expressed in millions of Rupiah, unless otherwise stated Appendix 5199 64. ACCOUNTS RECLASSIFICATION continued 1 January 2012 Before Reclassification Reclassification After Reclassification Consolidated statement of financial position Cash 11,357,523 214,906 11,572,429 Marketable securities 12,002,918 8,516,764 20,519,682 Government Bonds 78,459,449 202,070 78,661,519 Other assets - net 5,665,238 110,526 5,775,764 Policyholders’ investment in unit-linked contracts 9,044,266 9,044,266 - 65. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standard Board of Indonesian Institute of Accountants DSAK-IAI has issued several new or revision of SFAS and IFAS below, that are relevant to Group consolidated financial statement, but not yet effective for the financial year beginning 1 January 2013 are: - SFAS 102 Revised 2013 Accounting for Murabahah, Technical Bulletin 9: Implementation of Annuity Method in Murabahah and Accounting Guidelines for Indonesian Sharia Banking PAPSI 2013. Bank Indonesia as the banking regulator in Indonesia has issued the revision of Accounting Guidelines for Indonesian Sharia Banking PAPSI and BI regulation No 1526DPbS “Guidance on implementation of PAPSI 2 013” which should be effectively implemented on 1 August 2013. In September 2013, the Association of Bank Syariah Indonesia ABISINDO as the representative from syariah banking industry has submitted a letter to Bank Indonesia to request postponement of the implementation PAPSI 2013 above until 1 January 2016. Currently the Subsidiary is still in the process of preparing action plan in relation with implementation of PAPSI 2013. In December 2013, the Islamic Accounting Standards Boards of Indonesian Istitute of Accountants has issued PSAK 102 Revision which will be effectively implemented on 1 January 2014 on a prospective catch-up basis. Major change in the PSAK 102 Revision is related to the accounting treatment for murabahah transaction which in substance categorised as financing transaction. Under PSAK 102 Revision, murabahah transaction which in substance is a murabahah financing should follow the accounting treatment of SFAS 55: Financial Instrument: Recognition and Measurement, SFAS 50: Financial Instrument: Presentation and PSAK 60: Financial Instruments: Disclosures and other relevant PSAK. With the issuance of PSAK 102 Revision, starting from 1 January 2014 the Subsidiary will implement the previously issued Technical Bulletin 9 Implementation of Annuaity Method in Murabahah as indicated in the Basis for Conclusion in SFAS 102 Revision. Currently, the Subsidiary is still in the process of evaluating the impact this PSAK 102 Revision. - IFAS 27 “Transfer assets from customer” - IFAS 28 “Extinguishing financial liabilities with equity instrument” - SFAS 65 “Consolidated financial statements” - SFAS 66 “Joint arrangements” - SFAS 67 “Disclosure of interests in other entities” - SFAS 68 “Fair value measurement” - SFAS 1 revised 2013 “Presentation of financial statements” - SFAS 4 revised 2013 “Separate financial statements” - SFAS 15 revised 2013 “Investment in associates and joint ventures” - SFAS 24 revised 2013 “Employee benefits” Early adoption of these new and revised standards prior to 1 January 2015 is not permitted.