These consolidated financial statements are originally issued in Bahasa.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued A. Financial assets continued
b Loans and receivables continued 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 profit or loss and other comprehensive 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 profit or loss and other comprehensive 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:
- those that the Group upon initial recognition designates as of 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 profit or loss and other comprehensive 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 financial assets 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 initially 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 other 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 in the consolidated statement of profit or loss and other comprehensive income, 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 as other comprehensive
income is recognised in the profit or loss. Interest income is calculated using the effective interest method.
Recognition The Bank uses trade date accounting for regular way contracts when recording marketable
securities and government bonds transactions. Financial assets that are transferred to a third party but not qualify for derecognition are presented in the consolidated statement of financial
position as “receivables from assets pledged as collateral”, if the transferee has the right to sell or repledge them.
