PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 511 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued a.
Basis of Preparation of the Consolidated Financial Statements continued
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in Indonesia requires the use of estimates and assumptions that affects:
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the consolidated financial statements;
the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management’s best knowledge of current events and
activities, actual results may differ from those estimates. Figures in the consolidated financial statements are rounded to and stated in millions of Rupiah,
unless otherwise stated.
b. Principles of Consolidation
The consolidated financial statements include the financial statements of Bank Mandiri and its majority-owned or controlled Subsidiaries. Control is presumed to exist where more than 50.00 of
a Subsidiary’s voting power is controlled by Bank Mandiri, or Bank Mandiri is able to govern the financial and operating policies of a Subsidiary, or control the removal or appointment of the
majority of a Subsidiary’s Board of Directors. In the consolidated financial statements, all significant inter-company balances and transactions have been eliminated. Minority interest in net income of
subsidiaries is presented as a deduction of consolidated net income in order to present the Bank’s income. Minority interest in net assets are separately presented in the consolidated balance sheet
between equity and liabilities.
The consolidated financial statements are prepared based on a consistent accounting policy for transactions and events in similar circumstances. The accounting policies adopted in preparing the
consolidated financial statements have been consistently applied by the subsidiaries unless otherwise stated.
If the control on an entity is obtained or ends in the current year, the entity’s net income are included in the consolidated statement of income from the date of acquisition of the control or until
the date of the control is ceased.
c. Foreign Currency Transactions and Balances
Subsidiaries and overseas branches Bank Mandiri maintains its accounting records in Indonesian Rupiah. For consolidation purposes,
the financial statements of the overseas branches and overseas subsidiary of Bank Mandiri denominated in foreign currency are translated into Rupiah based on the following bases:
1 Assets, liabilities, commitments and contingencies - using the Reuters spot rates at the
balance sheet date. 2
Revenues, expenses, gains and losses - using the average middle rates during each month when the transaction occurs.
3 Shareholders’ equity accounts - using historical rates on the date of transaction.
4 Statements of cash flows - using the Reuters spot rates at the balance sheet date, except for
income and loss statement balances which are translated using the average midd le rates and shareholders’ equity balances which are translated using historical rates.
The resulting net translation adjustment is presented as “Differences Arising from Translation of Foreign Currency Financial Statements” under the Shareholders’ Equity section of the consolidated
balance sheets.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 512 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued c.
Foreign Currency Transactions and Balances continued
Transactions and balances in foreign currencies Transactions in currencies other than Rupiah are recorded at the prevailing exchange rates in effect
on the date of the transactions. At balance sheet date, all foreign currency monetary assets and liabilities are translated into Rupiah using the Reuters spot rates at 4.00 p.m. WIB Western
Indonesian Time on 31 December 2009, 2008 and 2007. The resulting gains or losses are credited or charged to the current year’s consolidated statements of income.
The exchange rates used against the Rupiah are as follows amounts in full Rupiah:
2009 2008
2007
1 Great Britain Poundsterling 15,164.94
15, 755.42 18, 760.64
1 Euro 13,542.43
15, 356.48 13, 821.80
1 United States Dollar 9,395.00
10, 900.00 9, 393.00
100 Japanese Yen 10,219.00
12, 065.00 8, 384.00
d. Transactions with Related Parties
