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 517 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies in current year continued
b.iv. SFAS 25 Revised 2009 – “Accounting Policies, Changes in Accounting Estimates and Errors” continued
Allowance for impairment losses on non-earning assets continued Prior 1 January 2011, the Bank determined allowance for impairment losses on inter-office
accounts and suspense accounts as follows: Period
Current Up to 180 days
Loss More than 180 days
The above changes on the determination of allowance for impairment losses represent changes in accounting policy which should generally be applied retrospectively and requiring
restatements of prior years’ results. However, as the impacts of the change in respect of prior years’ results are not material, no restatements were made and the impacts of the change are
charged to the current year consolidated statement of comprehensive income.
b.v. SFAS 7 Revised 2010 – “Related Party Disclosures” Starting from 1 January 2011, a government related entity-entity that is controlled, jointly
controlled or significantly influenced by the Government of Republic Indonesia is considered as a related party. The comparative information has been represented to conform with the revised
standard refer to Note 51.
Prior to 1 January 2011, all government – related entities were not considered as related parties.
Refer to Note 2f for definition and accounting policy for transaction with related party. b.vi. SFAS 4 Revised 2009 – “Consolidated and Separate Financial Statements”
Starting from 1 January 2011, the Bank implemented SFAS 4 Revised 2009 on the parent company only financial statements, which presents the Bank’s investments in subsidiaries
under the cost method. Previously, the Bank’s investments in subsidiaries was presented under the equity method. The comparative information has been restated refer to page 611.
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.
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.
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 518 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued A. Financial assets continued
a Financial assets at fair value through profit or loss continued 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.
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 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 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 income as “Allowance for impairment losses”.
c Held-to-maturity financial assets Held-to-maturity financial assets are non-derivative financial assets with fixed or
determinable payments and fixed maturities that the Group has the positive intention and ability to hold to maturity, other than:
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 519 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued A. Financial assets continued
