PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 513 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued f.
The Minimum Statutory Reserve
On 23 October 2008, Bank Indonesia issued a regulation PBI No. 1025PBI2008 concerning amendment of PBI No. 1019PBI2008 dated 15 October 2008 regarding the Minimum Statutory
Reserves at Bank Indonesia for Commercial Banks in Rupiah and foreign currencies. In accordance with such regulation, the minimum ratio of Statutory Reserves which Bank shall
maintain is 7.50 from Third Party Funds TPF in Rupiah which consist of Primary Minimum Statutory Reserves and Secondary Minimum Statutory Reserves. The Minimum Statutory Reserves
in foreign currencies is 1.00 from TPF in foreign currencies. Primary Minimum Statutory Reserves is 5.00 of TPF in Rupiah which was effective on 24 October 2008 and Secondary Minimum
Statutory Reserves is 2.50 of TPF in Rupiah, effective 24 October 2009.
On 6 September 2005, Bank Indonesia issued a regulation No. 729PBI2005 concerning changes of Bank Indonesia Regulation No. 615PBI2004 on Statutory Reserves of Commercial Banks with
Bank Indonesia in Rupiah and foreign currency. This regulation was effective on 8 September 2005. In accordance with the regulation, regulated additional Statutory Reserves of Commercial Banks in
Rupiah for Banks with Loan to Deposits Ratio 50.00 to 60.00 were previously required to maintain an additional Rupiah statutory reserves of 3.00 of the third party funds in Rupiah and
commercial banks with third party funds more than Rp50,000,000 shall maintain additional Statutory Reserves of 3.00 of third party funds in Rupiah, therefore the minimum ratio of Statutory Reserves
which the Bank shall maintain is 11.00 for Rupiah and 3.00 for foreign currency
.
g. Placements with Bank Indonesia and Other Banks
Placements with Bank Indonesia and other banks represent placements in the form of Bank Indonesia deposit facility FASBI, sharia FASBI, call money, “fixed-term” placements, time deposits
and others.
Placements with Bank Indonesia are stated at the outstanding balances less unearned interest income. Placements with other banks are stated at the outstanding balances less any allowance for
possible losses.
h. Marketable Securities
Marketable securities consist of securities traded in the money market such as Certificates of Bank Indonesia SBI, Sharia Certificates of Bank Indonesia SBIS, Surat Perbendaharaan Negara
SPN, Negotiable Cerfiticates of Deposits, medium-term notes, floating rate notes, promissory notes, Treasury Bills issued by other country government and Republic of Indonesia’s Government,
mandatory convertible bond, export bills, securities traded on the capital market such as mutual fund units and securities traded on the stock exchanges such as shares of stocks and bonds
including Sharia Corporate bonds.
Investments in mutual fund units are stated at market value, in accordance with the net value of assets of the mutual funds at the balance sheet date. Any unrealised gains or losses at the balance
sheet date are reflected in the current year’s consolidated statement of income.
The value of marketable securities is stated based on its classification, as follows: 1 Marketable securities classified as trading are stated at fair value. Unrealised gains or losses
resulting from changes in fair value are recognised in the current year’s consolidated statement of income. Upon the sale of marketable securities in a trading portfolio, the difference between
selling price and fair value is recognised as a realised gain or losses on sale.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 514 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued h. Marketable Securities continued
2 Marketable securities classified as available for sale securities are stated at fair value. Unrealised gains or losses from changes in fair value are not recognised in the current year’s
consolidated statement of income but are presented as a separate component in equity section. Gains or losses are recognised in consolidated statement of income upon realisation.
3 Marketable securities classified as held to maturity securities are stated at cost adjusted for unamortised discounts or premiums.
For marketable securities which are actively traded in organised financial markets, fair value is generally determined by reference to quoted market prices by the stock exchanges at the close of
business on the balance sheet date. For marketable securities with no quoted market price, a reasonable estimate of the fair value is determined by reference to the current market value of
another instrument which substantially have the same characteristic or calculated based on the expected cash flows of the underlying net asset base of the marketable securities. Any permanent
decline in the fair value of marketable securities classified as held to maturity and available for sale is charged to current year’s consolidated statement of income.
Purchase and sale of marketable securities transactions both for the customer and for the Bank are recognised in the consolidated financial statements at the transaction date trade date.
Reclassification of marketable securities to held to maturity classification from available for sale are recorded at fair value. Unrealised gains or losses are recorded in the equity section and will be
amortised up to the remaining live of the marketable securities using the effective interest rate method.
Reclassification of marketable securities to held to maturity classification from trading are recorded at fair value. Unrealised gains or losses are charged to the consolidated statements of income on
the date of reclassification.
Marketable securities are stated net of allowance for possible losses and any unamortised premiums or discount. Premiums and discounts are amortised using the effective interest rate
method.
Marketable securities are derecognised from the consolidated balance sheet after the Bank has fully transferred all significant risk and rewards of the related marketable securities.
i. Government Bonds
Government Bonds represent bonds issued by the Government of the Republic of Indonesia. Government Bonds consist of Government Bonds from the recapitalisation program and
Government Bonds purchased from the market. Government Bonds are stated based on the classification of the bonds, in accordance with accounting treatment of marketable securities as
described in Note 2h above.
For Government Bonds, which are actively traded in financial markets, the fair value is generally determined by reference to Bloomberg’s quoted market prices or broker’s quoted price on the
balance sheet date. For Government Bonds with no quoted market prices, a reasonable estimate of the fair value is calculated using next re-pricing method approach with deflator adjustment.
Government Bonds are derecognised from the consolidated balance sheet at the time the Bank has fully transferred all significant risk and rewards of the related Government Bonds.
