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 518 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies in current year continued iii. Classes of financial instrument
The Group classifies the financial instruments into classes that reflects the nature of information and take into account the characteristic of those financial instruments. The
classification of financial instrument can be seen in the table below:
Class as determined by Category as defined by SFAS 55 Revised 2006
the Bank and Subsidiaries Sub-classes
Financial assets
Financial assets at fair value through profit or loss
Financial assets held for trading Marketable securities
Government Bonds Derivative receivables – Non
hedging related Policyholder’s investments in
unit-linked contracts
Loans and receivables Current accounts with Bank Indonesia
Current accounts with other banks Placements with Bank Indonesia and other banks
Other receivables Securities purchased under resale agreements
Loans Consumer financing receivables
Acceptance receivables Other assets
Accrued income Receivables from customer
transactions Receivables from sale of
marketable securities Held-to-maturity investments
Marketable securities Government Bonds
Available-for-sale financial assets Marketable securities
Government Bonds Investments in shares
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 519 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies in current year continued iii. 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 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
Subordinated loans Off-balance
sheet financial
instruments Committed unused loan facilities granted
Outstanding irrevocable letters of credit Bank Guarantees issued
Standby letters of credit
iv. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the consolidated 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
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 520 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies in current year continued v. 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 see Note 2b v.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 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 Small, Micro and
Consumer with outstanding balance is less or equal to Rp5,000; and 3.
Restructured loans.