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
36
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued C. Derecognition continued
Collateral that is submitted by the Group under the agreement of securities sold under repurchase agreements and securities lending and borrowing transactions is not derecognized
because the Group substantially has all the risks and benefits of the collateral, based on the requirement that the repurchase price has been determined at the beginning, so that the
criteria for derecognition are not met.
Write-Offs In the case of financial assets’ write-off is a continuation of the financial assets’ settlement by
taking over collaterals, the amount written off is approximately equal to the difference between the fair value of repossessed assets after taking into account the financial assets’ cost of sales
and carrying amount.
Financial assets can be written off when the allowance for impairment losses have been established 100.
Write-off done overall to the financial assets’ carrying amount by debiting the allowance for impairment losses.
D. Reclassification of financial assets
The Group shall not reclassify any financial instrument out of or into the fair value through profit or loss category while it is held or issued.
The Group shall not classify any financial assets as held-to-maturity if Group has, during the current financial year or during the two preceding financial years, sold or reclassified more
than an insignificant amount of held-to-maturity financial assets before maturity more than insignificant in relation to the total amount of held-to-maturity financial assets other than sales
or reclassifications that:
a are so close to maturity or the financial assets call date that changes in the market rate of interest would not have a significant effect on the financial assets fair value;
b occur after the Group has collected substantially all of the financial asset s original
principal through scheduled payments or prepayments; or c are attributable to an isolated event that is beyond the Groups control, is non-recurring
and could not have been reasonably anticipated by the Group. Reclassification of financial assets from held to maturity classification to available for sale are
recorded at fair value. Unrealised gains or losses are recorded in other comprehensive income component and shall be recognised in the consolidated statement of profit or loss and other
comprehensive income until the financial assets is derecognised, at which time the cumulative gain or loss previously recognised in other comprehensive income shall be recognised in
consolidated statement of profit or loss and other income under gainloss from sale of financial assets.
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
37
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
c. Financial instruments continued E. Classes of financial instruments
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:
Category Class
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
Loans and receivables Current accounts with Bank Indonesia
Current accounts with other banks Placements with Bank Indonesia and other banks
Marketable securities Other receivables - trade transaction
Securities purchased under resale agreements Loans and sharia financingreceivables
Consumer financing receivables Investment in lease financing
Acceptance receivables
Other assets Accrued income
Receivables from customer transactions
Receivables from sale of marketable securities
Receivables to policyholders Receivables related to ATM
and credit card transaction Receivables on
collateralized government bonds
Held-to-maturity investments Marketable securities
Government bonds Available-for-sale financial
assets Marketable securities
Government bonds Investments in shares - less than 20
