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
c Held-to-maturity financial assets continued those that the Group upon initial recognition designates as at fair value through profit or
loss; those that the Group designates as available for sale; and
those that meet the definition of loans and receivables. Held-to-maturity financial assets are initially recognised at fair value including transaction
costs and subsequently measured at amortised cost, using the effective interest method. Interest income on held-to-maturity financial assets is included in the consolidated statement
of income and reported as “Interest income”. In the case of impairment, the impairment loss is reported as a deduction from the carrying value of the investment and recognised in the
consolidated financial statements as “Allowance for impairment losses”.
d Available-for-sale financial assets Available-for-sale are financial assets that are intended to be held for indefinite period of
time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or that are not classified as loans and receivables, held-to-maturity or
financial assets at fair value through profit or loss.
Available-for-sale financial assets are initial recognised at fair value, plus transaction costs, and measured subsequently at fair value with gains or losses arising from the changes in
fair value being recognised in the consolidated statement of comprehensive income, except for impairment losses and foreign exchange gains or losses for debt instrument, for equity
instrument, foreign exchange gains or losses is recognised as part of equity, until the financial assets is derecognised. If an available-for-sale financial asset is determined to be
impaired, the cumulative unrealised gain or loss arising from the changes in fair value previously recognised in the consolidated statement of comprehensive income is recognised
in the consolidated statement of income. Interest income is calculated using the effective interest method, and foreign currency gains or losses on monetary assets classified as
available for-sale are recognised in the consolidated statement of income.
Recognition The Bank uses trade date accounting for regular way contracts when recording marketable
securities and Government Bonds transactions whilst for other financial assets transaction use settlement date. Financial assets that are transferred to a third party but not qualify for
derecognition are presented in the consolidated statement of financial position balance sheets as “Pledged assets”, if the transferee has the right to sell or repledge them.
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 520 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued B. Financial liabilities
