PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 522 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued E. Classes of financial instrument continued
Category as defined by SFAS 55 Class as determined by the
Bank and Subsidiaries Sub-classes
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading Derivative payables - non
hedging related
Financial liabilities at amortised cost
Deposits from customers Demand deposits
Saving deposits Time deposits
Deposits from other banks Demand and saving deposits
Inter-bank call money Time deposits
Financial liabilities
Securities sold under repurchase agreements Acceptance payables
Marketable securities issued Accrued expenses
Other liabilities Payable to customer
Guarantee deposits Payable from purchase of
marketable securities Claim payable
Liability related to ATM and credit card transaction
Other liabilities related with UPAS transactions
Fund Borrowings Subordinated loans
Off-balance sheet
financial instruments
Committed unused loan facilities granted Outstanding irrevocable letters of credit
Bank Guarantees issued Standby letters of credit
F. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position when there is a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 523 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets
a Financial assets carried at amortised cost The Group assesses at each reporting date whether there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective
evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset a “loss event” and that loss event or events has an impact on
the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
The criteria that the Group uses to determine that there is objective evidence of impairment loss include:
1. significant financial difficulty of the issuer or obligor;
2. a breach of contract, such as a default or delinquency in interest or principal
payments; 3.
the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider;
4. there is a probability that the borrower will enter bankruptcy or other financial
reorganisation; 5.
the disappearance of an active market for that financial asset because of financial difficulties; or
6. observable data indicating that there is a measurable decrease in the estimation.
The Group has determined specific objective evidence of an impairment loss for loans including:
1. Loans classified as Sub-standard, Doubtful and Loss non-performing loans in
accordance with Bank Indonesia Regulation No. 72PBI2005 dated 20 January 2005 regarding Asset Quality Rating for Commercial Banks, as amended by Bank
Indonesia Regulation No. 112PBI2009 dated 29 January 2009. Since 24 October 2012, Group follows Bank Indonesia Regulation No. 1415PBI2012 regarding Asset
Quality Rating for Commercial Banks.
2. All restructured loans.
The Group initially assesses whether objective evidence of impairment for financial asset exists as described above. The individual assessment is performed on the individually
significant impaired financial asset, using discounted cash flows method. The insignificant impaired financial assets and non-impaired financial assets are included in group of
financial asset with similar credit risk characteristics and collectively assessed.
If the Group assesses that there is no objective evidence of impairment for financial asset assessed individually, both for significant and insignificant amount, hence the account of
financial asset will be included in a group of financial asset with similar credit risk characteristics and collectively assesses them for impairment. Accounts that are
individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.
