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 523 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued E. Classes of financial instrument continued
Class as determined by Category as defined by SFAS 55 Revised 2006
the Bank and Subsidiaries Sub-classes
Financial liabilities
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading
Derivative payables – non hedging related
Liability to unit-linked holders
Financial liabilities at amortised cost
Obligation due immediately Accrued interest payable
Deposits from customers Demand deposits
Saving deposits Time deposits
Deposits from other banks Demand and saving deposits
Inter-bank call money Time deposits
Securities sold under repurchase agreements Acceptance payables
Marketable securities issued Fund Borrowings
Other liabilities Payable to customer
Guarantee deposits Payable from purchase of
marketable securities Accrued employee bonus and
incentives, leave and yearly allowance THR
Accrued expenses operational IT
Liability to policyholder Liability related to ATM and
credit card transaction Subordinated loans
Off-balance sheet
financial instruments
Committed unused loan facilities granted Outstanding irrevocable letters of credit
Bank Guarantees issued Standby letters of credit
F. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position balance sheet when there is a legally enforceable right to offset
the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
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 524 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued G. Allowance for impairment losses of financial assets
a Financial assets carried at amortised cost The Group assesses at each reporting date whether there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective
evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset a “loss event” and that loss event or events has an impact on the
estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
The criteria that the Group uses to determine that there is objective evidence of impairment loss include:
1. significant financial difficulty of the issuer or obligor; 2. a breach of contract, such as a default or delinquency in interest or principal payments;
3. the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider;
4. probability that the borrower will enter bankruptcy or other financial reorganisation; 5. the disappearance of an active market for that financial asset because of financial
difficulties; or 6. observable data indicating that there is a measurable decrease in the estimation.
The Group has determined specific objective evidence of an impairment loss for loans including:
1. Loans classified as Sub-standard, Doubtful and Loss non performing loans in accordance with Bank Indonesia regulation refer to Note 2c.G. d.
2. All restructured loans. The Group initially assesses whether objective evidence of impairment for financial asset
exists as described above. The individual assessment is performed on the individually significant impaired financial asset, using discounted cash flows method. The insignificant
impaired financial assets and non-impaired financial assets are included in group of financial asset with similar credit risk characteristics and collectively assessed.
If the Group assesses that there is no objective evidence of impairment for financial asset assessed individually, both for significant and insignificant amount, hence the account of
financial asset will be included in a group of financial asset with similar credit risk characteristics and collectively assesses them for impairment. Accounts that are individually
assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.
In evaluating impairment for loans, the Bank determines loan portfolio into these three categories:
1. Loans which individually have significant value and if impairment occurred will have material impact to the consolidated financial statements, i.e. loans with Gross Annual
Sales GAS Corporate and Commercial, as well as loans with GAS outside Corporate and Commercial with outstanding balance more than Rp5,000;
2. Loans which individually have no significant value, i.e. loans with GAS Business, Micro and Consumer with outstanding balance is less or equal to Rp5,000; and
3. Restructured loans.
