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 512 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
a. Basis of Preparation of the Consolidated Financial Statements continued
The consolidated financial statements have been prepared under the historical cost, except for financial assets classified as available for sale, financial assets and liabilities held at fair value
through profit and loss and all derivative instruments which have been measured at fair value. The consolidated financial statements are prepared under the accrual basis of accounting.
The consolidated statements of cash flows are prepared based on the modified direct method by classifying cash flows on the basis of operating, investing and financing activities. For the purpose
of the consolidated statements of cash flows, prior to 1 January 2010, cash and cash equivalents include cash, current accounts with Bank Indonesia and current accounts with other banks. Since
1 January 2010, for the purpose of the consolidated statement of cash flows, cash and cash equivalents include cash, current accounts with Bank Indonesia, current accounts with other banks
and other short term highly liquid investments with original maturities of three months or less. This change is due to the withdrawal of SFAS No. 31 “Accounting for Banks “, which is applied
prospectively. Therefore there is no restatement of prior years consolidated statements of cash flows.
The financial statements of a Subsidiary company engaged in sharia banking have been prepared in conformity with the Statement of Financial Accounting Standards SFAS No. 101, “Presentation
of Financial Statement for Sharia Banking”, SFAS No. 102, “Accounting for Murabahah”, SFAS No. 104, “Accounting for Istishna”, SFAS No. 105, ”Accounting for Mudharabah”, SFAS No. 106,
“Accounting for Musyarakah”, SFAS No. 107, “Accounting for Ijarah”, SFAS No. 59, “Accounting for Sharia Banking”, Accounting Guidelines for Indonesian Sharia Banking PAPSI and other
accounting principles generally accepted established by the Indonesian Institute of Accountants and also accounting and reporting guidelines prescribed by the Indonesian banking regulatory authority
and Bapepam-LK.
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in Indonesia requires the use of estimates and assumptions that affects:
• the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the consolidated financial statements; •
the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management’s best knowledge of current events and
activities, actual results may differ from those estimates. Figures in the consolidated financial statements are rounded to and stated in millions of Rupiah,
unless otherwise stated.
b. Changes in accounting policies in current year
Since 1 January 2010, there are some changes in accounting policies due to the implementation of new SFAS and the withdrawal of SFAS No. 31, “Accounting for Banks”. The primary changes are
the implementation SFAS 50 Revised 2006 “Financial instruments: Presentation and Disclosure” and SFAS 55 Revised 2006 “Financial instruments: Recognition and Measurement”.
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 513 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies in current year continued
The accounting policies adopted for this year are consistent with those used in the previous financial years except in respect of the policies affected by implementation of SFAS 50 Revised
2006 “Financial Instruments: Presentation and Disclosures” and SFAS 55 Revised 2006 “Financial Instruments: Recognition and Measurement”, which are implemented since 1 January
2010. In accordance with the transitional provisions of the standards, these SFAS are applied prospectively and therefore there is no restatement to the comparative information. In relation to
impact on the implementation of SFAS 50 Revised 2006 and SFAS 55 Revised 2006, please see Note 49.
The allowance for impairment losses on financial assets in the consolidated financial statement as at and for year ended 31 December 2010 are prepared based on SFAS 50 Revised 2006 and
SFAS 55 Revised 2006. The previous allowance for possible losses for the financial assets in consolidated financial statements as at the and for the years ended 31 December 2009 and 2008 is
prepared based on SFAS 31.
Subsidiary that engaged in Sharia Banking, implements SFAS 50 Revised 2006 and SFAS 55 Revised 2006 limited to accounting principles that are not conflicting with Sharia Principles and not
specifically regulated by Sharia SFAS, in accordance with the letter from BI No. 101260DPbS 2008 dated 15 October 2008. For financial instruments that are already regulated by Sharia SFAS,
the Subsidiary Company complies with the related Sharia SFAS.
Withdrawal of SFAS 31 “Accounting for Banks” In 2010, cash and cash equivalents in the consolidated statements of cash flows was changed due
to the withdrawal of SFAS 31, and for the accounting treatment and presentation, please see Note 2a.
Primary changes in accounting policies in relation to implementation of SFAS 50 Revised 2006 “Financial Instruments: Presentation and Disclosures” and SFAS 55 Revised 2006 “Financial
Instruments: Recognition and Measurement” since 1 January 2010, are as follows:
i. Financial assets and liabilities 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.
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.
