PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 530 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
f. Transactions with Related Parties
The Bank and Subsidiaries enter into transactions with parties which are defined as related parties in accordance with Statement of Financial Accounting Standards SFAS No. 7 regarding
“Related Party Disclosures” and Regulation of Financial Services Authority formerly Bapepam and LK No. KEP-347BL2012, dated 25 June 2012 regarding “Financial Statements
Presentation and Disclosure of Issuers or Public Companies”, which are defined, among others, as:
I. entities under the control of the Bank and Subsidiaries;
II. associated companies;
III. investors with an interest in the voting that gives them significant influence; IV. entities controlled by investors under Note III above;
V. key employees and family members; and VI. entity that is controlled, jointly controlled or significantly influenced by Government, which is
defined as the Minister of Finance or Provincial Government who has share ownership in the entity.
All significant transactions with related parties have been disclosed in Note 55.
g. Cash and Cash Equivalents
Cash and cash equivalents consist of cash, current accounts with Bank Indonesia and current accounts with other banks and other short term highly liquid investments with original maturities
of 3 three months or less.
h. Current Accounts with Bank Indonesia and Other Banks
Current accounts with Bank Indonesia and Other Banks are classified as loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
The Minimum Statutory Reserve Based on Bank Indonesia Regulation No.1019PBI2008 dated 14 October 2008 concerning
Statutory Reserves of Commercial Banks in the Bank Indonesia in Rupiah and Foreign Currency, as amended by Bank Indonesia Regulation No. 1025PBI2008 dated 23 October 2008 as
amended by Bank Indonesia Regulation No. 1219PBI2010 dated 4 October 2010 as amended by Bank Indonesia Regulation No. 1310PBI2011 dated 9 February 2011 which has been
amended with PBI No. 1515PBI2013 dated 24 December 2013, the Bank should comply with a minimum reserve requirement GWM in Bank Indonesia in Rupiah and foreign currencies.
Minimum reserve requirement in Rupiah consists of Primary GWM, Secondary GWM and Loan to Deposit Ratio GWM.
Primary GWM in Rupiah is set at 8.00 from the Rupiah third party funds, secondary GWM in Rupiah is set at minimum 4.00 from the Rupiah third party funds and GWM LDR in Rupiah is
calculated by the difference between lower disincentive parameter or higher disincentive parameter with the difference between Bank’s LDR and target LDR by taking into account the
difference between Bank’s Capital Adequacy Ratio CAR and incentive CAR. Primary GWM and secondary GWM are applied effectively starting 1 November 2010 and GWM LDR is applied
effectively starting 1 March 2011.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 531 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
h. Current Accounts with Bank Indonesia and Other Banks continued
The Minimum Statutory Reserve continued GWM in foreign currency is set at 8.00 of foreign currency third party fund.
Subsidiary company that engaged in business operation using Sharia principle, had implemented the Minimum Statutory Reserve in accordance with Bank Indonesia Regulation No.
621PBI2004 dated 3 August 2004 regarding the Minimum Statutory Reserve in Rupiah and foreign currencies for Commercial Bank that engaged in business operation based on Sharia
principle, which amended by Bank Indonesia Regulation No. 823PBI2006 dated 5 October 2006 and the latest amendment using Bank Indonesia Regulation No. 1023PBI2008 dated 16
October 2008 and subsequently replace by PBI No.1516PBI2013 dated 24 December 2013, where every bank is obliged to maintain the Minimum Statutory Reserve in Rupiah by 5.00 from
TPF in Rupiah and in foreign currencies by 1.00 from TPF in foreign currencies
i. Placements with Bank Indonesia and Other Banks
Placements with Bank Indonesia and other banks represent placements in the form of Bank Indonesia deposit facility FASBI, sharia FASBI FASBIS, call money, “fixed-term” placements,
time deposits and others.
Placements with Bank Indonesia and other banks are stated at amortised cost using effective interest rate less any allowance for impairment losses.
Placement with Bank Indonesia and other banks are classified as loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
j. Marketable Securities
Marketable securities consist of securities traded in the money market such as Certificates of Bank Indonesia SBI, Sharia Certificates of Bank Indonesia SBIS, Surat Perbendaharaan
Negara SPN, Negotiable Cerfiticates of Deposits, Medium Term Notes, Treasury Bills issued by government of other country and Government of Republic of Indonesia, 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 including Sharia Corporate bonds.
Marketable securities are classified as financial assets at fair value through profit or loss, available for sale, held to maturity and loan and receivables. Refer to Note 2c for the accounting
policy of financial assets at fair value through profit or loss, available for sale, held to maturity, and loan and receivables.
Investments in mutual fund units are stated at market value, in accordance with the net value of assets of the mutual funds at the consolidated statement of financial position date.
For marketable securities which are traded in organised financial markets, fair value is generally determined by reference to quoted market prices by the stock exchanges at the close of business
on the consolidated statement of financial position date. For marketable securities with no quoted market price, a reasonable estimate of the fair value is determined by reference to the current
market value of another instrument which substantially have the same characteristic or calculated based on the expected cash flows of the underlying net asset base of the marketable securities.
Any permanent decline in the fair value of marketable securities classified as held to maturity and available for sale is charged to current year’s consolidated statement of comprehensive income.
