PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 529 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
h. Placements with Bank Indonesia and Other Banks
Placements with Bank Indonesia and other banks represent placements in the form of Bank Indonesia deposit facility FASBI, sharia FASBI, call money, “fixed-term” placements, time deposits
and others.
Placements with Bank Indonesia and other banks are stated at amortised cost using effective interest rate less any allowance for impairment losses.
Placement with Bank Indonesia and other banks are classified as loans and receivables. Refer to Note 2b for the accounting policy of loans and receivables.
Prior to 1 January 2010, placements with Bank Indonesia are stated at the outstanding balance less unearned interest income and placements with other banks are stated at the outstanding balance
less any allowance for impairment losses.
i. Marketable Securities
Marketable securities consist of securities traded in the money market such as Certificates of Bank Indonesia SBI, Sharia Certificates of Bank Indonesia SBIS, Surat Perbendaharaan Negara
SPN, Negotiable Cerfiticates of Deposits, medium-term notes, floating rate notes, promissory notes, Treasury Bills issued by other country government and Republic of Indonesia’s Government,
mandatory convertible bond, export bills, securities traded on the capital market such as mutual fund units and securities traded on the stock exchanges such as shares of stocks and bonds
including Sharia Corporate bonds.
Marketable securities are classified as financial assets at fair value through profit or loss, available for sale and held to maturity. Refer to Note 2b for the accounting policy of financial assets at fair
value through profit or loss, available for sale and held to maturity.
Prior to 1 January 2010, the value of marketable securities is stated based on its classification, as follows:
1 Marketable securities classified as trading are stated at fair value. Unrealised gains or losses resulting from changes in fair value are recognised in the current year’s consolidated statement
of income. Upon the sale of marketable securities in a trading portfolio, the difference between selling price and fair value is recognised as a realised gain or losses on sale.
2 Marketable securities classified as available for sale securities are stated at fair value. Unrealised gains or losses from changes in fair value are not recognised in the current year’s
consolidated statement of income but are presented as a separate component in equity section. Gains or losses are recognised in consolidated statement of income upon realisation.
3 Marketable securities classified as held to maturity securities are stated at cost adjusted for unamortised discounts or premiums using straight-line method and allowance for impairment
losses. Investments in mutual fund units are stated at market value, in accordance with the net value of
assets of the mutual funds at the balance sheet date. Any unrealised gains or losses at the balance sheet date are reflected in the current year’s consolidated statement of income.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 530 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
i. Marketable Securities continued
For marketable securities which are traded in organised financial markets, fair value is generally determined by reference to quoted market prices by the stock exchanges at the close of business
on the balance sheet date. For marketable securities with no quoted market price, a reasonable estimate of the fair value is determined by reference to the current market value of another
instrument which substantially have the same characteristic or calculated based on the expected cash flows of the underlying net asset base of the marketable securities. Any permanent decline in
the fair value of marketable securities classified as held to maturity and available for sale is charged to current year’s consolidated statement of income.
Reclassification of marketable securities to held to maturity classification from available for sale are recorded at fair value. Unrealised gains or losses are recorded in the equity section and will be
amortised up to the remaining live of the marketable securities using the effective interest rate method.
Reclassification of marketable securities to held to maturity classification from trading are recorded at fair value. Unrealised gains or losses are charged to the consolidated statements of income on
the date of reclassification.
j. Government Bonds
Government Bonds represent bonds issued by the Government of the Republic of Indonesia. Government Bonds consists of Government Bonds from the recapitalisation program and
Government Bonds purchased from the market.
Government Bonds are classified as financial assets at fair value through profit or loss, available for sale and held to maturity. Refer to Note 2b for the accounting policy of financial assets at fair value
through profit or loss, available for sale and held to maturity.
Prior to 1 January 2010, accounting policy for Government Bonds are similar with marketable securities as described in Note 2i.
k. Other Receivables - Trade Transactions
Other receivables - Trade Transactions represent receivables resulting from contracts for trade- related facilities given to customers, which will be reimbursed on maturity.
Other receivables - Trade Transactions are classified as financial assets in loans and receivables. Refer to Note 2b for the accounting policy of loans and receivables.
Prior to 1 January 2010, Other receivables - Trade Transactions are presented at their outstanding balances, net of allowance for impairment losses.
l. Securities PurchasedSold under ResaleRepurchase Agreements
Securities purchased under resale agreements are presented as assets in the consolidated balance sheet at the agreed resale price less unamortised interest income and allowance for impairment
losses. The difference between the purchase price and the agreed selling price is treated as deferred unamortised interest income and amortised as income over the period, commencing from
the acquisition date to the resale date using the effective interest rate method.
Securities purchased under resale agreements are classified as financial assets in loans and receivables. Refer to Note 2b for the accounting policy of loans and receivables.
