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 530 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued I.
Transition rules of implementation SFAS 50 Revised 2006 and SFAS 55 Revised 2006
Transitional Provisions Upon First Time Implementation of SFAS 50 Revised 2006 and SFAS 55 Revised 2006 is performed based on “Buletin Teknis” No. 4 issued by the Indonesian
Institute of Accountant, provides additional guidances below:
Effective Interest Rate The effective interest rate for financial instruments measured at amortised cost that were
acquired prior to and still have a balance remaining as at 1 January 2010 is calculated by referring to the future cash flows that will be generated from the time SFAS 55 Revised 2006
is first implemented up to the maturity of the financial instruments.
Derecognition Financial instruments that have been derecognised prior to 1 January 2010 should not be
reassessed subsequently to determine whether they would meet the derecognition criteria under SFAS 55 Revised 2006.
Compound Financial Instruments Compound financial instruments that have existed as at 1 January 2010 should be bifurcated
into debt and equity components in accordance with paragraph 11 of SFAS 50 Revised 2006 requirements. The bifurcation should be based on the nature, condition and requirements
relating to those financial instruments as at 1 January 2010.
Classification of Financial Instruments as Debt or Equity As at 1 January 2010, Bank Mandiri classified its financial instruments as a debt or equity
instrument in accordance with the requirements in paragraph 11 of SFAS 50 Revised 2006.
Impairment of Financial Instruments As at 1 January 2010, the Group determined any possible impairment of financial instruments
based on conditions existing at that date. Any difference between this impairment and the impairment calculated based on previous applicable accounting principles is recognised in
retained earnings as at 1 January 2010.
The impact of the initial implementation of SFAS 50 Revised 2006 and SFAS 55 Revised 2006 is disclosed in Note 50.
d. Principles of Consolidation
