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 540 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
w. Deposits from Other Banks
Deposits from other banks represent liabilities to local and overseas banks, in the form of demand deposits, saving deposits, inter-bank call money with original maturities of 90 days or less and time
deposits. Deposits from other banks are recorded as deposits from other banks.
Included in the deposits from other banks are sharia deposits in form of wadiah deposits, Syirkah temporer fund which comprise of unrestricted investment mudharabah saving deposit and
unrestricted investment mudharabah time deposit, and Certificates Mudharabah Investment Bank SIMA. SIMA is an investment certificate issued by the BSM which adopts profit sharing practice
and in form of placement among banks. SIMA financing period ranges from 1 – 6 months. Refer to Note 2v for the accounting policy for Syirkah temporer fund.
Deposits from other banks are classified as financial liabilities at amortised cost. Incremental costs directly attributable to acquistion of deposits from other banks are included in the amount of
deposits and amortised over the expected life of the deposits. Refer to Note 2b for the accounting policy for financial liabilities at amortised cost.
Prior to 1 January 2010, deposits from other banks are stated at the amount due to the other banks.
x. Liability for Future Policy Benefits and Liability to Unit-Linked Holders
Subsidiary’s liability for future policy benefits is stated in the consolidated balance sheet in accordance with the actuarial calculation. Increases or decreases in liability for future policy benefit
are recognised as an expense or income in the current year consolidated statement of income.
Liability to unit-linked policyholders is classified as financial liabilities at fair value through profit or loss. Refer to Note 2b for the accounting policy of financial liabilities at fair value through profit or
loss.
Funds received from customers for non-sharia unit-linked products are reported as gross premiums in the consolidated statement of income. Subsidiary’s liabilities to non-sharia unit-linked
policyholders are recognised in the consolidated balance sheet for the amount received net of the portion of premium representing the Subsidiary’s revenue, with a corresponding income statement
recognition for the increase in liabilities to non-sharia unit-linked policyholders.
Any gain or loss due to increases or decreases in market value of investments are recorded as incomeexpense, with a corresponding recognition of increasedecrease in liability to non-sharia
unit-linked policyholders in the consolidated statement of income and liability to non-sharia unit- linked policyholders in the consolidated balance sheet.
Funds received from customers for sharia unit-linked products is recognized as liabilities to sharia unit-linked policyholders in the consolidated balance sheet for the amount received net of the
Subsidiary’s fee ujrah portion for managing the revenue from unit-linked products.
y. Marketable Securities Issued
Marketable securities issued by the Bank and its Subsidiaries, include floating rate notes, medium- term notes and travelers’ cheques, are initially measured at fair value plus directly attributable
transaction costs. Subsequently transactions costs are amortised using the effective interest rate up to the maturity of marketable securities issued.
Marketable securities issued are classified as financial liabilities at amortised cost. Refer to Note 2b for the accounting policy for financial liabilities at amortised cost.
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 541 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
y. Marketable Securities Issued continued
Prior to 1 January 2010, marketable securities issued are stated at nominal value less unamortised discount. Costs incurred in connection with the issuance of marketable securities issued is
recognised as a discount and is deducted directly from the proceeds of issuance marketable securities issued and amortised on a straight-line method until the maturity date.
z. Fund Borrowings
Fund borrowings represent funds received from other banks, Bank Indonesia or other parties with the obligation of repayment in accordance with the requirements of the loan agreement.
Fund borrowings are initially measured at fair value plus directly attributable transaction costs. Fund borrowings are classified as financial liabilities at amortised cost. Refer to Note 2b for the
accounting policy for financial liabilities at amortised cost.
Prior to 1 January 2010, fund borrowings were stated at the amount payable to the lender.
aa. Subordinated Loans
Subordinated loans are initially measured at fair value plus directly attributable transaction costs. Subsequently transactions costs are amortised using the effective interest rate up to the maturity of
subordinated loans. Subordinated loans are classified as financial liabilities at amortised cost. Refer to Note 2b for the
accounting policy for financial liabilities at amortised cost. Prior to 1 January 2010, subordinated loans are stated at nominal value less unamortised discount.
Costs incurred in connection with the issuance of subordinated loans is recognised as a discount and is deducted directly from the proceeds of subordinated loans issuance and amortised on a
straight-line method until the maturity date.
ab. Income Tax
The balance sheet liability method is applied to determine income tax expense in Bank Mandiri and Subsidiaries. Under the balance sheet liability method, deferred tax assets and liabilities are
recognised for all temporary differences arising between the tax base of assets and liabilities and their carrying amount in the consolidated balance sheets at each reporting date. This method also
requires the recognition of future tax benefits, to the extent that realisation of such benefits is probable.
Currently enacted or substantially enacted tax rates at the time deferred tax assets has been realised or deferred tax liabilities has been settled are used in the determination of deferred income
tax. The changes to the carrying value of deferred tax assets and liabilities due to the changes of tax rates are charged in the current year, except for transactions which previously have been
directly charged or credited to shareholders’ equity.
Amendments to taxation obligations are recorded when an assessment is received or, if appealed against, when the result of the appeal is determined.
The estimated corporate income tax of Bank Mandiri and Subsidiaries is calculated for each company as a separate legal entity. Current tax assets and current tax liabilities for different legal
entities can not be set-off in the consolidated financial statements. Deferred tax assets are presented net of deferred tax liabilities in the consolidated balance sheets.
