PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 530 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued I.
Transition rules of implementation SFAS 50 Revised 2006 and SFAS 55 Revised 2006
Transitional Provisions Upon First Time Implementation of SFAS 50 Revised 2006 and SFAS 55 Revised 2006 is performed based on “Buletin Teknis” No. 4 issued by the Indonesian
Institute of Accountant, provides additional guidances below:
Effective Interest Rate The effective interest rate for financial instruments measured at amortised cost that were
acquired prior to and still have a balance remaining as at 1 January 2010 is calculated by referring to the future cash flows that will be generated from the time SFAS 55 Revised 2006
is first implemented up to the maturity of the financial instruments.
Derecognition Financial instruments that have been derecognised prior to 1 January 2010 should not be
reassessed subsequently to determine whether they would meet the derecognition criteria under SFAS 55 Revised 2006.
Compound Financial Instruments Compound financial instruments that have existed as at 1 January 2010 should be bifurcated
into debt and equity components in accordance with paragraph 11 of SFAS 50 Revised 2006 requirements. The bifurcation should be based on the nature, condition and requirements
relating to those financial instruments as at 1 January 2010.
Classification of Financial Instruments as Debt or Equity As at 1 January 2010, Bank Mandiri classified its financial instruments as a debt or equity
instrument in accordance with the requirements in paragraph 11 of SFAS 50 Revised 2006.
Impairment of Financial Instruments As at 1 January 2010, the Group determined any possible impairment of financial instruments
based on conditions existing at that date. Any difference between this impairment and the impairment calculated based on previous applicable accounting principles is recognised in
retained earnings as at 1 January 2010.
The impact of the initial implementation of SFAS 50 Revised 2006 and SFAS 55 Revised 2006 is disclosed in Note 50.
d. Principles of Consolidation
The consolidated financial statements include the financial statements of Bank Mandiri and its majority-owned or controlled Subsidiaries. Control is presumed to exist where more than 50.00 of
a Subsidiary’s voting power is controlled by Bank Mandiri, or Bank Mandiri is able to govern the financial and operating policies of a Subsidiary, or control the removal or appointment of the majority
of a Subsidiary’s Board of Directors. In the consolidated financial statements, all significant inter- company balances and transactions have been eliminated. Non-controlling interest in net income of
subsidiaries is presented as a deduction of consolidated net income in order to present the Bank’s income. Non-controlling interest in net assets are presented as part of equity in the consolidated
statement of financial position balance sheet. Refer to Note 2b.b.i in relation to changes in accounting policy for presentation of non-controlling interest starting 1 January 2011.
The consolidated financial statements are prepared based on a consistent accounting policy for transactions and events in similar circumstances. The accounting policies adopted in preparing the
consolidated financial statements have been consistently applied by the Subsidiaries, unless otherwise stated.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 531 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
d. Principles of Consolidation continued
If the control on an entity is obtained or ends in the current year, the entity’s net income are included in the consolidated statement of income from the date of acquisition of the control or until the date of
the control is ceased.
e. Foreign Currency Transactions and Balances
Subsidiaries and overseas branches Bank Mandiri maintains its accounting records in Indonesian Rupiah. For consolidation purposes,
the financial statements of the overseas branches and overseas subsidiary of Bank Mandiri denominated in foreign currency are translated into Rupiah based on the following bases:
1 Assets and liabilities, commitments and contingencies - using the Reuters spot rates at the
consolidated statement of financial position balance sheet date. 2
Revenues, expenses, gains and losses - using the average middle rates during each month when the transaction occurs.
3 Shareholders’ equity accounts - using historical rates on the date of transaction.
4 Statements of cash flows - using the Reuters spot rates at the balance sheet date, except for
income and loss statement balances which are translated using the average middle rates and shareholders’ equity balances which are translated using historical rates .
The resulting net translation adjustment is presented as “Differences Arising from Translation of Foreign Currency Financial Statements” under the Shareholders’ Equity section of the consolidated
statement of financial position balance sheet.
Transactions and balances in foreign currencies Transactions in currencies other than Rupiah are recorded into Rupiah by using rates on the date of
the transactions. At consolidated statement of financial position balance sheet date, all foreign currency monetary assets and liabilities are translated into Rupiah using the Reuters spot rates at
4.00 p.m. WIB Western Indonesian Time on 31 December 2011 and 2010 . The resulting gains or losses are credited or charged to the current year’s consolidated statements of income.
The exchange rates used against the Rupiah at the dates of the consolidated balance sheets are as follows amounts in full Rupiah:
2011 2010
Great Britain Pound Sterling 1Rp 13,975.29
13,941.18 Euro 1Rp
11,714.76 12,017.99
United Stated Dollar 1Rp 9,067.50
9,010.00 Japanese Yen 100Rp
11,682.00 11,075.00
f. Transactions with Related Parties
