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
The Bank and Subsidiaries enter into transactions with parties which are defined as related parties in accordance with Statement of Financial Accounting Standards SFAS No. 7 regarding “Related
Party Disclosures”. Related parties are principally defined as:
I. entities under the control of the Bank and Subsidiaries;
II. associated companies; III. investors with an interest in the voting that gives them significant influence;
IV. entities controlled by investors under Note III above; V. key employees and family members; and
VI. entity that is controlled, jointly controlled on significantly influenced by Goverment.
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 532 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
f. Transactions with Related Parties continued
All significant transactions with related parties, are disclosed in Note 51. Transactions of Government Bonds and transactions between Bank Mandiri with state-owned
enterprises and other entities that ownedcontrolled by the Government, except for transactions with Directorate General of Taxation, are considered as transactions with related parties refer to Note
2b.b.v regarding changes in accounting policies.
g. Cash and Cash Equivalents
Cash and cash equivalents consist of cash, current accounts with Bank Indonesia and current accounts with other banks and other short term highly liquid investments with original maturities of 3
three months or less.
h. Current Accounts with Bank Indonesia and Other Banks
Current accounts with Bank Indonesia and Other Banks are classified as loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
Subsidiary that engages in sharia banking presents current accounts with Bank Indonesia and Other Banks at their outstanding balance net of allowance for impairment losses.
The Minimum Statutory Reserve Based on Bank Indonesia Regulation PBI No.1019PBI2008 dated 14 October 2008 concerning
Statutory Reserves of Commercial Banks in the Bank Indonesia in Rupiahs and Foreign Currency, as amended by PBI No. 1025PBI2008 dated 23 October 2008 as amended by PBI
No. 1219PBI2010 dated 4 October 2010 as amended by PBI No. 1310PBI2011 dated 9 February 2011, the Bank should comply with a minimum reserve requirement GWM in Bank
Indonesia in Rupiah and foreign currencies. Minimum reserve requirement in Rupiah consists of Primary GWM, Secondary GWM and Loan to Deposit Ratio GWM.
Primary GWM in Rupiah is set at 8.00 from the Rupiah third party funds, secondary GWM in Rupiah is set at minimum 2.50 from the Rupiah third party funds and GWM LDR in Rupiah is
calculated by multiplying the difference between lower disincentive parameter or higher disincentive parameter with the difference between Bank’s LDR and target LDR by taking into account the
difference between Bank’s Capital Adequacy Ratio CAR and incentive CAR. Primary GWM and secondary GWM are applied effectively since 1 November 2010 and GWM LDR is applied
effectively since 1 March 2011.
Starting from 1 March 2011 up to 31 May 2011, GWM in foreign currency is set at 5.00 of foreign currency third party fund and since 1 June 2011 GWM in foreign currency is set at 8.00 of foreign
currency third party fund.
Subsidiary company that engaged in business operation using Sharia principle, had implemented the Minimum Statutory Reserve in accordance with PBI No. 621PBI2004 dated 3 August 2004
regarding the Minimum Statutory Reserve in Rupiah and foreign currencies for Commercial Bank that engaged in business operation based on Sharia principle, which amended by PBI No.
823PBI2006 dated 5 October 2006 and the latest amendment using PBI No. 1023PBI2008 dated 16 October 2008, where every bank is obliged to maintain the Minimum Statutory Reserve in Rupiah
by 5.00 from TPF in Rupiah and in foreign currencies by 1.00 from TPF in foreign currencies
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 533 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
i. Placements with Bank Indonesia and Other Banks
