PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 516 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES lanjutan
a. Basis of Preparation of the Consolidated Financial Statements lanjutan
The financial statements of a Subsidiary company engaged in sharia banking have been prepared in conformity with the Statement of Financial Accounting Standards SFAS 101
Revised 2011, “Presentation of Financial Statement for Sharia Banking”, SFAS 102 Revised 2013 “Accounting for Murabahah”, SFAS 104 “Accounting for Istishna”, SFAS 105 ”Accounting
for Mudharabah”, SFAS 106 “Accounting for Musyarakah”, SFAS 107 “Accounting for Ijarah”, SFAS 110 “Accounting for Sukuk” and other Statements of Financial Accounting Standards of
Accountants, as long as not contradict with Sharia principle also Accounting Guidelines for Indonesian Sharia Banking PAPSI Revised 2013.
The preparation of financial statements in accordance with Indonesian Financial Accounting Standards requires the use of estimates and assumptions. It also requires management to make
judgments in the process of applying the accounting policies the Group. The area that is complex or requires a higher level of consideration or areas where assumptions and estimates could have
a significant impact on the consolidated financial statements are disclosed in Note 3.
All figures in the consolidated financial statements, are rounded and presented in million rupiah Rp unless otherwise stated.
b. Changes in accounting policies
On 1 January 2014, Subsidiary operates in Sharia changed its accounting policies in accordance with SFAS 102 Revised 2013 and PAPSI 2013, The changes were as follows:
1. For Murabahah, Subsidiary evaluate whether there is an objective evidence that the individually significant financial assets or group of financial assets are impaired at each
statement of financial position date as a result of an event occurred after initial recognition which impact the estimated future cash flows that can be reliably estimated. Impairment is
recognised as allowance and charged to the statement of consolidated comprehensive income for the current year. The individual assessment is performed on the individually significant
impaired financial assets, using discounted cash flow method.
For the collective impairment, as allowed under SFAS 102 Revised 2013, Bank Indonesia’s circular letter No, 1526Dpbs dated 10 July 2013 and Otoritas Jasa Keuangan OJK No. S-
129PB.132014 dated 6 November 2014, for the first adoption, the Subsidiary could apply transition rule for collective impairment in accordance with prevailing Bank Indonesia’s
regulation. The transition rule can be applied at the latest until 31 December 2014.
2. Directly attributable income and expenses relating to financing receivables which are recognised as part of financing assets and will be recognised as income or expense by
amortising the carrying value of financing receivable using the effective interest rate. Before 1 January 2014, directly attributable income and expenses are recognised into consolidated
statement of comprehensive income as incurred.
c. Financial instruments A. Financial assets
The Group classifies its financial assets in the following categories of a financial assets at fair value through profit and loss, b loans and receivables, c held-to-maturity financial
assets, and d available-for-sale financial assets. The classification depends on the purpose for which the financials assets were acquired. Management determines the classification of
its financial assets at initial recognition.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 517 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES lanjutan
c. Financial instruments continued A. Financial assets continued
a Financial assets at fair value through profit or loss This category comprises two sub-categories: financial assets classified as held for
trading, and financial assets designated by the Group as at fair value through profit or loss upon initial recognition.
A financial asset is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term or if it is part of a portfolio of
identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short term profit-taking. Derivatives are also categorised as
held for trading unless they are designated and effective as hedging instruments.
A financial asset designated as fair value through profit or loss at inception are held to back the insurance liabilities of Subsidiary measured at fair value of the underlying
assets.
Financial instruments included in this category are recognised initially at fair value; transaction costs are taken directly to the consolidated statement of income. Gains and
losses arising from changes in fair value and sales of these financial instruments are included directly in the consolidated statement of comprehensive income and are
reported respectively as “Unrealised gainslosses from increasedecrease in fair value of financial instruments” and “Gainslosses from sale of financial instruments”. Interest
income on financial instruments held for trading are included in “Interest income”.
b Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market, other than: -
those that the Group intends to sell immediately or in the short term, which are classified as held for trading, and those that the Group upon initial recognition
designates as at fair value through profit or loss; -
those that the Group upon initial recognition designates as available for sale; or -
those for which the Group may not recover substantially all of its initial investment, other than because of loans and receivables deterioration.
Loans and receivables are initially recognised at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest rate method.
Income on financial assets classified as loans and receivables is included in the consolidated statement of comprehensive income and is reported as “Interest income”. In
the case of impairment, the impairment loss is reported as a deduction from the carrying value of the financial assets classified as loan and receivables and recognised in the
consolidated statement of comprehensive income as “Allowance for impairment losses”.
