NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 513 1. GENERAL continued
h. Structure and Management continued
As at 31 December 2012 and 2011, the Risk Monitoring and Good Corporate Governance Committee Bank Mandiri are as follows:
2012 2011
Chairman, concurrently as member : Pradjoto Pradjoto
Member : Edwin Gerungan
Edwin Gerungan Member
: Muchayat Muchayat
Member : Cahyana Ahmadjayadi
Cahyana Ahmadjayadi Member
: Krisna Wijaya Krisna Wijaya
Member : Tama Widjaja
Tama Widjaja Secretary ex-officio
: Lisana Irianiwati Lisana Irianiwati
As at 31 December 2012 and 2011 Bank Mandiri has a total of 30,762 and 27,907 employees unaudited, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements of the Bank and Subsidiaries “Group” were authorised to be issued by the Board of Directors on 25 February 2013.
The principal accounting policies adopted in preparing the consolidated financial statements of the Bank and Subsidiaries are set out below:
The consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards, and the Capital Market Supervisory Agency and Financial Institution Bapepam
and LK regulation No. VIII.G.7 Attachment of the Chairman of Bapepam and LK’s decree No. KEP- 347BL2012 dated 25 June 2012, “Financial Statements Presentation and Disclosure for Issuer or
Public Companies”.
a. Basis of Preparation of the Consolidated Financial Statements
The consolidated financial statements have been prepared under the historical cost, except for financial assets classified as available for sale, financial assets and liabilities held at fair value
through profit or loss and all derivative instruments which have been measured at fair value. The consolidated financial statements are prepared under the accrual basis of accounting, except for the
consolidated statements of cash flows.
Consolidated statements of cash flows are prepared using the direct method by classifying cash flows in operating activities, investing and financing activities.
The financial statements of a Subsidiary company engaged in sharia banking have been prepared in conformity with the Statement of Financial Accounting Standards SFAS 101 Revised 2011,
“Presentation of Financial Statement for Sharia Banking”, SFAS 102 “Accounting for Murabahah”, SFAS 104 “Accounting for Istishna”, SFAS 105 ”Accounting for Mudharabah”, SFAS 106
“Accounting for Musyarakah”, SFAS 107 “Accounting for Ijarah”, SFAS 110 “Accounting for Sukuk” Accounting Guidelines for Indonesian Sharia Banking PAPSI 2003 and other Statements of
Financial Accounting Standards established by the Indonesian Institute of Accountants and also accounting and reporting guidelines prescribed by the Indonesian banking regulatory authority and
Bapepam and LK.
The preparation of financial statements in accordance with Indonesian Financial Accounting Standards requires the use of estimates and assumptions. It also requires management to make
judgments in the process of applying the accounting policies the Group. The area that is complex or requires a higher level of consideration or areas where assumptions and estimates could have a
significant impact on the consolidated financial statements as disclosed in Note 3.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 514 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
a. Basis of Preparation of the Consolidated Financial Statements continued
All figures in the consolidated financial statements, are rounded and presented in million rupiah Rp unless otherwise stated.
b. Changes in accounting policies
On 1 January 2012, the Group applied new and revised statements of financial accounting standards SFAS and interpretations ISAK effective starting on that date. Changes to the
Group’s accounting policies, in accordance with the transitional provisions in the respective standards and interpretations.
The adaption of the following new or revised standards and interpretations, which are relevant to the Groups operations and resulted in an effect on the consolidated financial statements, are as follows:
b.i. SFAS 60 - Financial Instruments: Disclosures The new standard consolidated and expands a number of existing disclosure requirements and
adds some new disclosures. The over riding principle of the standard is to disclose sufficient information that enables users
of financial statements evaluating the performance and financial position of significant financial instruments owned by an entity. SFAS 60 requires more extensive disclosures on risks and risk
management, and requires reporting entities to report the sensitivity of its financial instruments to movement of such risks. Some additional new disclosures are as follows:
1 Qualitative and quantitative disclosure on the impact of certain risks, including market risk, credit risk and liquidity risk;
2 Additional disclosure for those items that affect the amount of comprehensive income, in which gains and losses are separated by category of financial instruments, and
3 Disclosure of fair value for each class of financial assets and financial liabilities, and disclosure of the fair value hierarchy of financial instruments measured at fair value at the
reporting date. The Group has incorporated disclosures requirements of SFAS No. 60 for the consolidated
financial statements as at and for the year ended 31 December 2012. The Group has decided to early adopt improvements on SFAS 60 refer to Note 65.
b.ii. SFAS 62 - Insurance Contract Several revisions which have impact to the Subsidiary are as follows:
a. The Subsidiary is required to comply with the requirement on unbundling deposit component from insurance component subject to the following:
- Unbundling is required if both the following conditions are met i the Subsidiary can
measure the deposit component including any embedded surrender options separately i.e. without considering the insurance component and ii the Subsidiary’s accounting
policies do not otherwise require it to recognise all obligations and rights arising from the deposit component;
- Unbundling is permitted, but not required, if the Subsidiary can measure the deposit
component separately but its accounting policies require it to recognise all obligations and rights arising from the deposit component, regardless of the basis used to measure
those rights and obligations; and
- Unbundling is prohibited if the Subsidiary cannot measure the deposit component
separately.
