NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 533 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
o. Loans continued
Brief explanation for each type of sharia financing is as follows: Mudharabah financing is a co-operation for certain project between first party malik, shahibul mal or
Subsidiary as owner of fund and second party amil, mudharib or debtors as fund manager whereas the profit sharing will be shared in accordance with percentage as stated in the agreement,
meanwhile losses will be borne by the Subsidiary except if the second party does negligence, error or violate the agreement. Mudharabah financing is stated at the outstanding financing balance less
allowance for possible losses.
Musyarakah financing is a co-operation between two or more parties in a certain business wherein each party provides a portion of fund on condition that the profit shall be shared in the agreement,
whereas losses shall be borne in accordance with the portion of the fund of each party. Musyarakah financing is stated at the outstanding financing balance less allowance for possible losses.
Ijarah receivables are the financing on the availability of fund in relation to transferring the right to use and benefit of a good and service based on rental transaction which was not followed by
transfer of the goods ownership to the lessee. Ijarah muntahiyah bittamlik is an agreement on the availability of fund in relation to transferring the use right and benefit of a good or service based on
rental transaction with an option to transfer the ownership title of goods to the lessee. Ijarah receivables are recognized at due date at the amount of it lease income not yet received and
presented at its net realizable value, which is the outstanding balance of the receivables.
Murabahah receivables are the financing such goods by confirming purchase price to a buyer and the buyer pays it with a higher price as an agreed profit. Murabahah receivables are stated at the
balance of the receivable less deferred margin and allowance for possible losses.
Istishna receivables are the financing such goods in the form of manufacturing the ordered goods with the agreed criteria and specification by both of orderer or buyer Mustashni and manufacturer
or seller Shani. Istishna receivables are presented based on the outstanding billings less allowance for possible losses.
Qardh receivables are a borrowing at the condition that the borrower should repay the loan at specified period of time. The Subsidiary will obtain a free ujrah from this transaction, which is
recognized upon receipt. Qardh receivables is stated at its outstanding balance less allowance for possible losses.
Rahn represent the mortgage of goods or assets owned by the customer for an equivalent amount of money. Assets or goods mortgaged are appraised based on market value, less a certain
deduction percentage. The Subsidiary will obtain a fee ujrah, which is recognized upon receipt.
On 16 January 2013, Islamic Accounting Standards Boards of Indonesian Institute of Accountants DSAS-IAI has issued Technical Bulletin No. 9 to standardize the implementation of annuity method
in murabahah. Based on Technical Bulletin No. 9 murabahah financing are fund distribution from syariah financial institution to debtors through trading mechanism. In accounting, this transactions
substantially classified as financing. Accounting treatment for financing are refer to SFAS 50 Revised 2010, SFAS 55 Revised 2011, SFAS 60 and other relevant SFAS. Currently the
Subsidiary is evaluating and has not determined the impacts of this Technical Bulletin on its financial statements.
Loans are classified as financial assets in loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
