PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
60
13. INVESTMENTS IN SHARES OF STOCK continued
a. The details of investments in shares of stock are as follows: continued The details of investments in shares of stock as of December 31, 2005 are as follows:
Accumulated Equity
Investee Nature
Percentage of in Retained Earnings
Companies of Business
Ownership Cost
Accumulated Losses Carrying Value
Equity Method of Accounting: PT AXA Mandiri Financial
Services Insurance
49.00 16,761
45,613 62,374
PT Sarana Bersama Pembiayaan
Indonesia Holding
company 34.00
2,278 2,278
- 62,374
Cost Method of Accounting: PT Semen Kupang
a
Manufacturing 59.70
45,023 45,023
PT Sri Thai
a
Manufacturing 21.60
23,055 23,055
Otherseach less than Rp3,889
Various 10,912
10,912 78,990
Total 141,364
Less: Allowance for possible losses 73,298
68,066
a These investments represent restructured loans through debt to equity participations Note 11B.g. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such
investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001.
The details of investments in shares of stock as of December 31, 2004 are as follows:
Accumulated Equity
Investee Nature of
Percentage of in Retained Earnings
Companies Business Ownership
Cost Accumulated Losses
Carrying Value Equity Method of Accounting:
PT AXA Mandiri Financial Services
Insurance 49.00
16,761 12,939
3,822 PT Sarana Bersama
Pembiayaan Indonesia
Holding company
34.00 2,278
2,881 5,159
8,981
Cost Method of Accounting: PT Semen Kupang
a
Manufacturing 59.73
45,023 45,023
PT Sri Thai
a
Manufacturing 21,60
23,055 23,055
Others each less than Rp3,889
Various 9,935
9,935 78,013
Total 86,994
Less: Allowance for possible losses 78,145
8,849
a These investments represent restructured loans through debt to equity participations Note 11B.g. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such
investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
61
13. INVESTMENTS IN SHARES OF STOCK continued
b. Investments in shares of stocks by Collectibility:
2005 2004
Current 68,739
4,922 Sub-standard
- 1,955
Loss 72,625
80,117 Total
141,364 86,994
Less: Allowance for possible losses 73,298
78,145 68,066
8,849
c. Movements of allowance for possible losses on investments in shares of stocks:
2005 2004
Balance at beginning of year 78,145
89,693 Reversal during the year Note 37
4,847 1,922
Write-offs -
9,530 Others
- 96
Balance at end of year 73,298
78,145
Management believes that the allowance for possible losses on investments in shares of stock is adequate.
14. PREMISES AND EQUIPMENT
2005 2004
CostValuation 8,142,270
7,825,578 Less: Accumulated depreciation and amortization
2,836,857 2,341,950
Net book value 5,305,413
5,483,628
Certain premises and equipment were revalued in 1979, 1987 and 2003.
