Furthermore, based on the decision letter of the Minister of Law and Human Rights of the Republic of Indonesia No.C-08091 HT.01.04.TH.2005 dated March 28, 2005, the name of PT Central Sari Finance was changed to PT BCA Finance. PT Bank Royal Indonesia, a company incorporated in Indonesia and located at Jalan Suryopranoto No. 52, Central Jakarta, Indonesia, is engaged in banking and has been in business since 1965.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements consist of financial statements of the Bank and Subsidiaries (PT BCA Finance, BCA Finance Limited, PT Bank BCA Syariah, PT BCA Sekuritas, PT Asuransi Umum BCA, PT BCA Multi Finance (formerly PT Central Santosa Finance), PT Asuransi Jiwa BCA, PT Central Capital Ventura and PT Bank Royal Indonesia) together "the Group". Derecognise the assets and liabilities of the former subsidiary from the consolidated statements of financial position.
The reversal amount is recognized in the consolidated income statements. The amount of the reduction is recognized as an individual impairment loss in the current year's consolidated profit or loss.
USE OF ESTIMATES AND JUDGMENT
When determining the fair value of financial assets and liabilities for which there is no observable market price, the Group must use valuation techniques as described in note 2g for financial instruments that are traded infrequently and have little price transparency, fair value is less objective and requires different degrees of judgment based on liquidity, concentration, uncertainty of market factors, price assumptions and other risks. The Group's accounting policies enable assets and liabilities to be classified into different accounting categories upon creation in accordance with applicable accounting standards and based on certain circumstances: (continued) x When classifying financial assets as "held until maturity", the Group determined that .
BUSINESS COMBINATIONS
The acquisition of PT Bank Royal Indonesia was carried out in accordance with Regulation no. Bapepam-LK. In addition to the acquisition of PT Bank Royal Indonesia, the Bank plans to acquire PT Bank Rabobank International Indonesia ("Rabobank Indonesia") which is located in Indonesia. Because the evaluation process for the acquisition of the business of Rabobank Indonesia has not been completed at the date of the financial statements, the initial recognition for this business combination has not yet been met.
CASH
CURRENT ACCOUNTS WITH BANK INDONESIA
Primary GWM is the minimum reserve that a bank should maintain in the form of current accounts with Bank Indonesia. GWM RIM is the minimum reserve that a bank should maintain in the form of current accounts with Bank Indonesia in a certain percentage of the third-party fund, which is calculated based on the difference between the RIM owned by the bank and the RIM Target. Information on the classification and fair value of the current account with Bank Indonesia is disclosed in Note 38.
CURRENT ACCOUNTS WITH OTHER BANKS
As of December 31, 2019 and 2018, the Bank did not have any balances on payment accounts with other banks of related parties. All current accounts with other banks as of December 31, 2019 and 2018 were classified as current and management believes that the impairment losses on current accounts with other banks as of December 31, 2019 and 2018 were not necessary. Information about the classification and fair value of current accounts with other banks can be found in Note 38.
PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS
At 31 December 2019 and 2018, the Group did not have balances of placements with other related party banks. Information on the classification and fair value of placements with Bank Indonesia and other banks is disclosed in Note 38. Information on the maturity date of placements with Bank Indonesia and other banks is disclosed in Note 44.
FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING
Management estimates that the provision for write-downs was sufficient to cover possible losses on irrecoverable takeover receivables. Per On 31 December 2019 and 2018, the bank had no balances of takeover receivables and debts from and to related parties. Information on the classification and fair value of takeover receivables and debts is provided in note 38.
BILLS RECEIVABLE
The management believes that the created value adjustment is sufficient to cover potential losses of uncollectible bills of exchange receivables. As of December 31, 2019 and 2018, the bank has no bills of exchange receivables from related parties.
SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL
Management believes that the created impairment allowance is adequate to cover potential losses of uncollectible securities purchased under resale agreements. The management believes that the formed value adjustment due to impairment is adequate to cover potential losses from uncollectible receivables. Management believes that the value adjustment is adequate to cover potential losses from uncollectible receivables from consumer financing.
INVESTMENT SECURITIES
The information on investment securities by type and currency per 31 December 2019 and 2018 were as follows: (continued). The details of investment in shares owned by the bank per 31 December 2019 and 2018 are as follows: (continued). PT Sarana Multi Infrastructure (Persero) AAA Pefindo AAA Pefindo PT Sarana Multigriya Financial (Persero) AAA Pefindo.
FIXED ASSETS
In 2019, the revaluation was carried out by Kantor Jasa Penilai Publik (“KJPP”) Antonius Setiady & Rekan based on the valuation report dated 30 October 2019. The fair value measurement of the land is categorized as level 2 fair value based on the input to the valuation technique used. Loss on sale of fixed assets recognized as part of other operating expenses for the years ended December 31, 2019 and 2018 of Rp. 13,552 and Rp. 4,432, respectively.
INTANGIBLE ASSETS
Receivables related to ATM and credit card transactions consist of receivables arising from ATM transactions within the Bersama, Prima and Link ATM network as well as receivables from Visa and Master Card for credit card transactions. Unaccepted invoices receivable represent export receivables not accepted by the customer due to import export transactions. Other mainly consists of interoffice accounts, various forms of receivables from transactions with third parties, including clearing transactions and others.
The reconciliation of the consolidated accounting income before tax and taxable income of the Bank was as follows: (continued). Significant items of deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows: (continued). Additionally, included in the Bank's total deferred tax asset was the deferred tax asset arising from the unrealized gain (loss) on the change in fair value of available-for-sale placements with Bank Indonesia and other banks (see note 8) in the amount of Rp (3,171) and Rp 774 on December 31, 2019 and 2018, respectively.
SUBORDINATED BONDS
Electronic money represents liabilities of the Bank from cash deposited electronically by customers and are not considered deposits as defined in banking laws. Pledge majority or all of the Bank's current or future income or assets outside the Bank's main business, except if the actions are carried out to meet regulatory requirements or relate to short-term liquidity loans or relate to the Bank's option for recovery plan;. As of 31 December 2019 and 2018, the Bank complied with the aforementioned covenants in relation to the issued subordinated debt agreements.
SHARE CAPITAL
Reduce the authorized capital and paid-up capital unless it is done on the order of the Indonesian government or authority (including but not limited to BI, OJK, the Indonesian Ministry of Finance and/or other authorities of the Indonesian Bank Restructuring Agency ("IBRA") in accordance with applicable law; and. In the composition of publicly owned shares, 2.49% of shares were owned by parties related to PT Dwimuria Investama Andalan. In the composition of publicly owned shares, 2.49% of shares were owned by parties related to PT Dwimuria Investama Andalan with PT Dwimuria Investama Andalan.
ADDITIONAL PAID-IN CAPITAL
As a result of the implementation of a quasi-reorganization, the Bank's accumulated losses as of October 31, 2000 Rp had been eliminated with the additional paid-up capital. The implementation of a quasi-reorganization was approved by Bank Indonesia through its letter No. 3/165/DPwB2/IDWB2 dated February 21, 2001 and by the shareholders at their Extraordinary General Meeting of Shareholders on April 12, 2001 (the minutes of the meeting prepared by Notary Hendra Karyadi, S.H., in notarial deed no.
COMMITMENTS AND CONTINGENCIES
The Bank is a party to various pending legal actions, administrative proceedings and claims in the ordinary course of its business. It is not possible to predict with certainty whether the Bank will be successful in any of these legal matters or, if not, what their impact may be. However, the Bank's management does not expect the results in any of these proceedings to have a material adverse effect on the Bank's results of operations, financial position or liquidity.
INTEREST AND SHARIA EXPENSES
Included in interest income from loans receivable and investment securities, interest from the effect of discounting (liquidation interest) of impaired financial assets for the year ended December 31, 2019 was Rp 72,189 and Rp Rp, respectively (2018: Rp (28,951) and Rp nil). Fee and commission income from loans receivable was fee and commission income related to the disbursement of loan facilities, which was not an integral part of the effective interest rate.
NET TRADING INCOME
IMPAIRMENT LOSSES ON ASSETS
GENERAL AND ADMINISTRATIVE EXPENSES
BASIC AND DILUTED EARNINGS PER SHARE
The following table provides an overview of the carrying values and fair values of the Group's financial instruments, measured at fair values, and their analysis according to the level in the fair value hierarchy. The following table shows the carrying values and fair values of the Group's financial instruments, which are not measured at fair values, and their analysis based on the level in the fair value hierarchy. The majority of financial instruments that are not valued at fair value are valued at amortized cost.
POST-EMPLOYMENT BENEFITS OBLIGATION
During the year ended 31 December 2019 and 2018, the accumulated contribution from the bank amounts to 2% (two percent) and 3% (three percent) respectively, which is considered a deduction from the daily allowance obligation in accordance with the Labor Act. The bank's obligation for pension benefits for the years ended 31 December 2019 and 2018 was in accordance with the independent actuarial reports dated 8 January 2020 and 3 January 2019 respectively. The subsidiaries' obligation for pension benefits per December 31, 2019 and 2018, which were recognized in the consolidated statement of financial position of Rp. 98,638 and Rp. 109,527, respectively.
CUSTODIAL SERVICES
The bank's business segment is classified into 5 (five) main geographical areas which are Sumatera, Java, Kalimantan, East Indonesia and overseas business.
FINANCIAL RISK MANAGEMENT
For mortgage facilities (“CPR”), the Bank requires all facilities to be supported by collateral properties (land/building). The Bank's policy is to realize securities that are repossessed as part of the settlement of credit. The Bank's primary reserve consists of the Minimum Statutory Reserve and cash held at branches.
CAPITAL MANAGEMENT
The calculation of the minimum CAR on a consolidated basis is performed by calculating capital and risk-weighted assets (“RWA”) based on risks from consolidated accounts as specified in the applicable regulations of Bank Indonesia. The bank is obliged to make minimum capital available in accordance with the risk profile per 31 December 2019 and 2018 based on Financial Services Authority Regulation No. CAR per 31 December 2019 and 2018, calculated in accordance with the applicable rules, taking into account credit risk, market risk and operational risk were as follows: (continued).
NON-CONTROLLING INTEREST
TRANSACTIONS AND BALANCES WITH RELATED PARTIES
NET PAYABLE RECONCILIATION
The rent payment for the 33rd floor started on September 1, 2015, for which in accordance with the agreement between the Bank and PT Grand Indonesia, starting from the first rent payment date (September 1, 2015), the Bank will make the rent payments every quarter. basis until the lease expires. 24 regarding the Indonesia Deposit Insurance Corporation (Lembaga Penjaminan Simpanan or "LPS") dated September 22, 2004, effective September 22, 2005, LPS was established to provide guarantees for certain obligations of commercial banks based on prevailing schemes of guarantee, in which the guarantee amount can be changed if certain prevailing criteria are met.
ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE
This additional paid-up capital payment was made by the Bank on December 5, 2019 and as Other Assets as of December 31, 2019. The Bank signed the credit agreement with PT Bank Rabobank International Indonesia for a total facility of Rp 1,100,000. or equivalent to USD in full amount) on January 14, 2020, with an interest rate of JIBOR plus margin. PT Bank Rabobank International Indonesia withdrew its credit facility worth Rp 210,000 on January 30, 2020.
ADDITIONAL INFORMATION
This act was approved by the Minister of Justice and Human Rights with his Decision Letter No. BANK CENTRAL ASIA Tbk KOSOVAR INFORMATION UTILIZATIONS OF CHANGES IN EQUITY (MENTAL SUBJECT ONLY) LAST YEARS ON DECEMBER 31, 2019 AND 20 million rubles, except for 20 million rubles. declared) 2019 Issued and fully paid-up capital Additional paid-in capital Fixed asset revaluation surplus Unrealized gains (losses) on available-for-sale financial assets. PT BANK CENTRAL ASIA Tbk ADDITIONAL INFORMATION STATEMENT OF CHANGES IN EQUITY (ENTITY ONLY) FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018 (Expressed in million rupiah 201 paid-up and paid-up capital, unless fully paid) Revaluation surplus of fixed assets Unrealized gains (losses) on available-for-sale financial assets.
NAVIGATING CHANGENAVIGATING CHANGE
