PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2013 AND 2012
Expressed in millions of Rupiah, unless otherwise stated
Appendix 518 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued B. Financial liabilities continued
b Financial liabilities at amortised cost Financial liabilities at amortised cost are initially recognised at fair value minus transaction
costs. After initial recognition, Group measures all financial liabilities at amortised cost using
effective interest rates method. Effective interest rate am
ortisation is recognised as “Interest expense”.
C. Derecognition Financial assets are derecognised when the contractual rights to receive the cash flows from
these assets have ceased to exist or the assets have been transferred and substantially all the risks and rewards of ownership of the assets are also transferred that is, if substantially all the
risks and rewards have not been transferred, the Group tests control to ensure that continuing involvement on the basis of any retained powers of control does not prevent derecognition.
Financial liabilities are derecognised when they have been redeemed or otherwise extinguished. Collateral furnished by the Group under standard repurchase agreements and securities lending
and borrowing transactions is not derecognised because the Group retains substantially all the risks and rewards on the basis of the predetermined repurchase price, and the criteria for
derecognition are therefore not met.
D. Reclassification of financial assets
The Group shall not reclassify any financial instrument out of or into the fair value through profit or loss category while it is held or issued.
The Group shall not classify any financial assets as held-to-maturity if Group has, during the current financial year or during the two preceding financial years, sold or reclassified more than
an insignificant amount of held-to-maturity financial assets before maturity more than insignificant in relation to the total amount of held-to-maturity financial assets other than sales
or reclassifications that:
a are so close to maturity or the financial assets call date that changes in the market rate of interest would not have a significant effect on the financial assets fair value;
b occur after the Group has collected substantially all of the financial asset s original principal
through scheduled payments or prepayments; or c are attributable to an isolated event that is beyond the Groups control, is non-recurring and
could not have been reasonably anticipated by the Group. Reclassification of financial assets from held to maturity classification to available for sale are
recorded at fair value. Unrealised gains or losses are recorded in other comprehensive income component and shall be recognised in the consolidated statement of comprehensive income
until the financial assets is derecognised, at which time the cumulative gain or loss previously recognised in other comprehensive income shall be recognised in consolidated statement of
income under gainloss from sale of financial assets .
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2013 AND 2012
Expressed in millions of Rupiah, unless otherwise stated
Appendix 519 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued E. Classes of financial instrument
The Group classifies the financial instruments into classes that reflects the nature of information and take into account the characteristic of those financial instruments. The classification of
financial instrument can be seen in the table below:
Class as determined by Category as defined by SFAS 55 the Bank and Subsidiaries
Sub-classes
Financial assets
Financial assets at fair value through profit or loss
Financial assets held for trading Marketable securities
Government Bonds Derivative receivables - Non
hedging related Cash
Loans and receivables Current accounts with Bank Indonesia
Current accounts with other banks Placements with Bank Indonesia and other banks
Marketable securities Other receivables- trade transactions
Securities purchased under resale agreements Loans
Consumer financing receivables Net investment in lease financing
Acceptance receivables
Other assets Accrued income
Receivables from customer transactions
Receivables from sale of marketable securities
Receivables from transactions related to ATM and credit card
Receivables to policyholder Held-to-maturity investments
Marketable securities Government Bonds
Available-for-sale financial assets Marketable securities
Government Bonds Investments in shares
