PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Foreign Currency Transactions and Balances continued The exchange rates used against the Rupiah were as follows amounts in full Rupiah:
December 31, 2005 December 31, 2004
US Dollar 1Rp 9,830
9,285 Great Britain Pound Sterling 1Rp
16,982 17,908
Japanese Yen 100Rp 8,383
9,059 Euro 1Rp
11,643 12,660
d. Transactions with Related Parties Bank Mandiri and Subsidiaries enter into transactions with related parties as defined in SFAS No. 7 -
“Related Party Disclosures”. All significant transactions with related parties, whether or not conducted under normal terms and
conditions as those with third parties, are disclosed in Note 48. Transactions of Bank Mandiri with state and regionally-ownedcontrolled entities including the Indonesian Bank Restructuring Agency “IBRA”,
Unit Pelaksanaan Penjaminan Pemerintah UP3 an institution that replaced IBRA, and a new institution that replaced UP3, the Indonesia Deposit Insurance Corporation LPS are not considered
as transactions with related parties.
e. Cash and Cash Equivalents Cash and cash equivalents consist of cash, current accounts with Bank Indonesia and current
accounts with other banks. f. Placements with Bank Indonesia and Other Banks
Placements with Bank Indonesia and other banks represent placements in the form of call money, “fixed-term” placements, time deposits and others.
Placements with Bank Indonesia are stated at the outstanding balances, net of the unamortized interest. Placements with other banks are stated at the outstanding balances, net of allowance for
possible losses.
g. Securities
Securities consist of securities traded in the money market such as, Certificates of Bank Indonesia, medium term notes, promissory notes, commercial papers, export bills, securities traded on the capital
market such as mutual fund units and securities traded on the stock exchanges such as shares of stocks and bonds.
Securities include bonds issued by the Government, that are not related to the recapitalization program such as treasury bonds and foreign currency bonds. These bonds or notes are issued by the
Government for the purpose of managing the Government’s funding requirements, and are obtained through both primary and secondary markets.
Investments in mutual fund units are stated at market value, which is the net value of assets of the mutual funds at the balance sheet date. Any unrealized gains or losses at the balance sheet date are
reflected in the current year’s profit or loss.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
