Regulation of the Financial Services Authority ("POJK") no. 32/POJK.04/2014 on the planning and organization of the shareholders' meeting of joint stock companies and POJK no. 33/POJK.04/2014 on the board of directors and the board of commissioners of issuers or public companies, as stated in the decision on the declaration of the meeting no. Irawan Soerodjo, S.H., M.Si., Notary Public in Jakarta, notice of amendment of such statute has been received and recorded in the Administrative System of Legal Entities, Minister of Law and Human Rights of the Republic of Indonesia, as stated in letter no.
GENERAL (continued)
Changes in the Bank's Statute regarding the distribution of shares as stated in the notarial deed of Hendra Karyadi, S.H., Notary in Jakarta, No. Changes in the Bank's Statute regarding the distribution of shares as stated in the Declaration of the Meeting Resolutions No.
GENERAL (continued) d. The Subsidiaries
PT Bank Digital BCA, a company domiciled in Indonesia and located at Jalan Suryopranoto No.52, Central Jakarta, Indonesia, is engaged in banking business and has been operating since 1965. Based on the minutes of the extraordinary general meeting of PT Bank Royal Indonesia None.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The key management in the bank consists of members of the board of directors and the board of directors. For the purpose of the presentation of the consolidated cash flow statements, cash and cash equivalents consist of cash, current accounts with Bank Indonesia, current accounts with other banks, placements with Bank Indonesia and other banks that mature within 3 (three) months or less from the date of acquisition, so as long as they are not pledged as collateral for loans or restricted.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Press Release “Employee Benefits”
However, the increase is recognized in the income statement up to the amount of the same asset impairment resulting from the revaluation previously recognized in the consolidated income statement and other comprehensive income. Changes in the present value of the defined benefit obligation resulting from plan changes or curtailment programs are immediately recognized in the consolidated statement of income and other comprehensive income as past service costs.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ag. Post-employment benefits obligation (continued)
A contract is or contains a lease if the contract conveys the right to control the use of an identified asset f or a period of time in return f or compensation. The Group is entitled to receive substantially all of the economic benefit from the use of the identified asset; and.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ai. Lease Transaction (continued)
The nature of transactions and balances of accounts with related parties are disclosed in Note 48.
USE OF ESTIMATES AND JUDGMENT
USE OF ESTIMATES AND JUDGMENT (continued)
In classifying financial assets as "measured at fair value through profit or loss", the Group has determined that the financial assets meet the description of assets measured at fair value through profit or loss as set out in Note 2g;. In classifying financial assets as "measured at amortized cost", the Group determined that the financial assets meet the description of assets measured at amortized cost as set out in Note 2g;.
CASH
The Group's accounting policy provides scope for assets and liabilities to be designated in different accounting categories at the outset in accordance with the prevailing accounting standards and based on certain circumstances. In classifying investment in sukuk as “measured at cost” and “measured at fair value through other comprehensive income”, the Group determined that the investment meets the classification requirements set out in Note 2r.
CURRENT ACCOUNTS WITH BANK INDONESIA
As of December 31, 2022 and 2021, the Group had no current account balances with other related party banks. Information on the maturity of current accounts with other banks is provided in note 44.
PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS
In 2022 and 2021, all investments with other banks were categorized as level 1, had not experienced a significant increase in credit risk since initial recognition and had no objective evidence of impairment.
PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS (continued)
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets and liabilities at f air value through prof it or loss consist of
Data on the classification and fair value of financial assets and liabilities measured by fair value through profit or loss are disclosed in Note 38. Data on the maturity of financial assets and liabilities measured by fair value through profit or loss is disclosed in note 44.
ACCEPTANCE RECEIVABLES AND PAYABLES
ACCEPTANCE RECEIVABLES AND PAYABLES (continued)
At 31 December 2022 and 2021, the Bank did not have balances of acceptance debtors and creditors of and to related party. Information on the classification and fair value of acceptance receivables and payables is disclosed in Note 38.
BILLS RECEIVABLE
Management believes that the provision for impairment losses was sufficient to cover potential losses on uncollectible underwriting receivables.
BILLS RECEIVABLE (continued)
SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL
All the securities purchased under the resale contracts as of December 31, 2022 and 2021 were denominated in rupee currency. Information on the maturity of securities purchased under resale agreements is disclosed in Note 44.
LOANS RECEIVABLE
LOANS RECEIVABLE (continued)
As of December 31, 2022 and 2021, the Bank had no receivables pledged as collateral. Information on the details of loans receivable by geographic region is provided in note 42.
CONSUMER FINANCING RECEIVABLES
Affiliates offer consumer financing contracts for 4-wheeled motor vehicles with terms ranging from 3 (three) months to 6 (six) years, while consumer financing contracts for 2 (two) wheeled motor vehicles ranging f from 1 (one) year to 4 (f) years. Customer written receivables are receivables overdue f or more than 150 (one hundred and f if ty) days f or 4 (f our) wheeled vehicles and more than 180 (one hundred and eighty) days f or 2 (with two wheelers) motor vehicles.
CONSUMER FINANCING RECEIVABLES (continued)
INVESTMENT SECURITIES
The total liabilities at book value (“securities sold under repurchase agreements”) in the consolidated balance sheet amounted to Rp 255,962 as of December 31, 2022. The total liabilities at book value (“securities sold under repurchase agreements”) in the consolidated balance sheet statements of financial position amounted to Rp 77,021 as of December 31, 2021.
INVESTMENT SECURITIES (continued)
Pergerakan cadangan kerugian penurunan nilai efek-efek untuk tujuan investasi untuk atau tahun yang berakhir pada tanggal 31 Desember 2022 dan 2021 adalah sebagai berikut: (lanjutan). PT Sarana Multi Infrastruktur (Persero) AAA Pefindo AAA Pefindo PT Sarana Multigriya Keuangan (Persero) AAA Pefindo AAA Pefindo.
FIXED ASSETS
FIXED ASSETS (continued)
The management estimates that the sum insured is adequate to cover potential damages to the insured fixed assets. As of December 31, 2022 and 2021, the bank has no fixed assets that are not being used temporarily, nor fixed assets that have been removed from active use and are not classified as available for sale.
INTANGIBLE ASSETS
OTHER ASSETS
Management believes that the created impairment loss allowance is adequate to cover potential losses on other irrecoverable assets.
DEPOSITS FROM CUSTOMERS AND OTHER BANKS (continued)
Information on the classification and fair value of deposits from customers and other banks is disclosed in Note 38. Information on the maturity of deposits from customers and other banks is disclosed in Note 44.
INCOME TAX a. Prepaid tax
INCOME TAX (continued)
The bank has filed a complaint about the tax objections that the General Directorate of Taxes did not approve on December 7, 2020, amounting to Rp. 735,407. The bank has filed a complaint about the tax objections that the General Directorate of Taxes did not approve on February 25, 2022, in the amount of Rp. 709,060.
DEBT SECURITIES ISSUED
As of the date of these consolidated financial statements, the outcome of the appeal is not yet known. At the date of the consolidated financial statements, the outcome of the appeal is not yet known.
DEBT SECURITIES ISSUED (continued)
BORROWINGS (continued)
All of the above loan agreements include certain covenants normally required for such loans, such as restrictions on initiating mergers or consolidations with other parties, obtaining loans from other parties other than loans obtained in the ordinary course of business, or changes in the capital structure and/ or articles of association without notice/prior written approval of creditors and maintenance of certain agreed financial relationships. Information on the classification and nominal value of loans is disclosed in note 38.
ESTIMATED LOSSES FROM COMMITMENTS AND CONTINGENCIES Estimated losses from commitments and contingencies consist of
ESTIMATED LOSSES FROM COMMITMENTS AND CONTINGENCIES (continued)
ACCRUALS AND OTHER LIABILITIES
Liabilities to policyholders represent obligations from subsidiary or long-term insurance contracts, liability for future insurance benefits, unearned premium reserves and estimated claims. Liabilities from insurance transactions were subsidiary liabilities for reinsurance debt, coinsurance payable and claims.
SUBORDINATED BONDS
Obligations relating to ATM and credit card transactions consist of obligations under ATM transactions within ATM Bersama, Prima and Link, and obligations under Visa and Master Card for credit card transactions. Others consist mainly of short-term debts to employees, interoffice accounts, deposits and unsettled transactions.
SUBORDINATED BONDS (continued)
The Trusteeship Agreement provides several negative covenants which, among other things, must be fulfilled by the Bank, before the repayment of the bonds payable, without the written consent of the Trustee, the Bank is not allowed to: (continued). As of December 31, 2022 and 2021, the Bank has complied with all material covenants in relation to the subordinated debt agreements issued.
SHARE CAPITAL
Reduce the authorized capital and paid-up capital, unless the reduction is based on a request from the Indonesian government or the order of the authority (including but not limited to BI, OJK, the Minister of Finance in the Republic of Indonesia and/or the authorities monetary as well as restructuring authorities in the banking sector in accordance with the laws in force in Indonesia);
SHARE CAPITAL (continued)
ADDITIONAL PAID-IN CAPITAL
COMMITMENTS AND CONTINGENCIES (continued)
INTEREST AND SHARIA INCOME
Interest and Shariah charges on or customer deposits with related parties are disclosed in Note 48.
FEE AND COMMISSION INCOME - NET
NET INCOME FROM TRANSACTION AT FAIR VALUE THROUGH PROFIT OR LOSS Net income from transaction at fair value through profit or loss consists of.
NET INCOME FROM TRANSACTION AT FAIR VALUE THROUGH PROFIT OR LOSS Net income f rom transaction at f air value through prof it or loss consists of
ADDITION (REVERSAL) OF IMPAIRMENT LOSSES ON ASSETS
PERSONNEL EXPENSES
BASIC AND DILUTED EARNINGS PER SHARE
APPROPRIATION OF NET INCOME
APPROPRIATION OF NET INCOME (continued)
FINANCIAL INSTRUMENTS
SKMR periodically conducts an assessment of the feasibility of the market data sources used for the valuation. To determine the quality of market data input, factors such as independence, relevance, reliability, availability of multiple data sources and the methodology used by the price providers are taken into account.
FINANCIAL INSTRUMENTS (continued)
During the year ended December 31, 2022 and 2021, the accumulated contributions of the bank are 2% (two percent) respectively, which is considered as a deduction in the severance pay its obligation under the Labor Law. The post-retirement benefit, its obligation per 31 December 2022 and 2021, was calculated by Kantor Konsultan Aktuaria Steven & Mourits as the bank's independent actuary using the projected unit credit method.
POST-EMPLOYMENT BENEFITS OBLIGATION (continued)
Expenditures for post-employment benefits of subsidiaries for the years ended December 31, 2022 and 2021 are shown in the profit and loss in the amount of Rp. 3,260 and Rp. 15,354, respectively. In the years ended 31 December 2022 and 2021, payments for or post-employment benefits in subsidiaries amounted to Rp 7,884 and Rp 4,304, respectively, with the subsidiaries setting aside funds that will be used to support the fulfillment of their post-employment liability for each employee in the amount of Rp 15,793 and Rp 10,100 by placing them with several insurance companies that meet the criteria for being recorded as program assets.
MONETARY ASSETS AND LIABILITIES IN FOREIGN CURRENCIES
The services offered by the Bank's Custodial Services Bureau include custody, settlement and transaction management, income collection, power of attorney, corporate action, cash management, investment registration/reporting and tax recovery. Per On 31 December 2022 and 2021, assets managed by the bank's custodian office consist of shares, bonds, time deposits, certificates of deposit, commercial papers and other money market instruments.
MONETARY ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (continued)
OPERATING SEGMENTS
OPERATING SEGMENTS (continued)
FINANCIAL RISK MANAGEMENT
ALCO is led by the president and director (also a member), while the other members consist of 10 (ten) directors and the executive vice president responsible for treasury and international banking, the executive vice president responsible for corporate banking and transactions. , Executive Vice President responsible for Accounting, Tax, Industry and Economic Research, Environmental Sustainability Management and Investor Relations, Head of International Banking, Head of Treasury, Head of Corporate Strategy &. Planning, Head of Corporate Banking, Transactions and Finance, Head of SME and Commercial Operations, Head of Development of Transaction Banking Products, Head of Business Development of Transaction Banking, Head of Development of Partner Solutions of Transaction Banking, Head of Consumer Finance and Head of Risk Management.
FINANCIAL RISK MANAGEMENT (continued) c. Credit risk management (continued)
For financial assets recognized in the consolidated statements of financial position, the maximum exposure to credit risk is usually equal to their carrying amount. The following table shows the Group's maximum exposure to credit risk from financial instruments in the consolidated statements of financial position (on-balance sheet) and consolidated administrative accounts (off-balance sheet).
FINANCIAL RISK MANAGEMENT (continued)
For the mortgage facility (“KPR”), the Bank requires that all facilities be supported by collateral properties (land/building). The bank has applied the prepayment rule, in accordance with the regulation established by the regulator.
FINANCIAL RISK MANAGEMENT (continued) e. Market risk management (continued)
The data is then used by the bank as a database to calculate capital reserves for operational risk using a standard method. The Bank always conducts an independent review of loss data for operational risks to maintain the validity of data provided by work units.
FINANCIAL RISK MANAGEMENT (continued) f. Operational risk management (continued)
With reference to the implementation of integrated risk management concept, implementation of tasks and responsibilities of Integrated Risk Management Work Unit is one of the functions of the existing Risk Management Work Unit. In order to effectively implement integrated risk management, the Bank also has an Accounting Information System and Risk Management System that can identify, measure and monitor the business risks of the financial conglomerate.
MATURITY GAP OF FINANCIAL ASSETS AND LIABILITIES
NET OPEN POSITION
NET OPEN POSITION (continued)
CAPITAL MANAGEMENT
The Bank is required to provide minimum capital according to the risk profile as at 31 December 2022 in accordance with Financial Services Authority Regulation No. The Bank is required to provide minimum capital according to the risk profile as of December 31, 2021 in accordance with Financial Services Authority Regulation No.
CAPITAL MANAGEMENT (continued)
NON-CONTROLLING INTEREST
Related Parties Nature of Relationship Nature of Transaction PT Dwimuria Investama Andalan Shareholder Deposits from Customers Dana Pensiun BCA Employer Pension Fund Pension Fund Contribution,.
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
NET PAYABLE RECONCILIATION
GUARANTEES ON THE OBLIGATIONS OF DOMESTIC BANKS
At the date of adoption of these consolidated financial statements, the Group is still evaluating the potential impact of the implementation of these new standards and the effect on the Group's consolidated financial statements.
NEW REGULATIONS ISSUED BY REGULATORS RELATED TO CORONAVIRUS DISEASE 2019 (COVID-19)
ADDITIONAL INFORMATION
Demand accounts in other banks - with deduction for write-downs of Rp 595 per December 31, 2022. Positions in Bank Indonesia and other banks - less write-downs of Rp 5,463.
