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
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 Bank Indonesia regulation No. 813PBI2006 dated 5 October 2006 regarding “Changes in Bank Indonesia Regulation No. 73PBI2005 dated 20 January 2005
regarding Legal Lending Limit for Commercial Bank”. Related parties are principally defined 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; and
V. key employees and family members.
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
the Indonesia Deposit Insurance Corporation LPS a new institution that replaced UP3 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.
Current accounts with other banks are stated at the outstanding balance less allowance for possible losses while current account with Bank Indonesia are stated at the balance of current accounts.
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 513 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued f.
The Minimum Statutory Reserve
On 23 October 2008, Bank Indonesia issued a regulation PBI No. 1025PBI2008 concerning amendment of PBI No. 1019PBI2008 dated 15 October 2008 regarding the Minimum Statutory
Reserves at Bank Indonesia for Commercial Banks in Rupiah and foreign currencies. In accordance with such regulation, the minimum ratio of Statutory Reserves which Bank shall
maintain is 7.50 from Third Party Funds TPF in Rupiah which consist of Primary Minimum Statutory Reserves and Secondary Minimum Statutory Reserves. The Minimum Statutory Reserves
in foreign currencies is 1.00 from TPF in foreign currencies. Primary Minimum Statutory Reserves is 5.00 of TPF in Rupiah which was effective on 24 October 2008 and Secondary Minimum
Statutory Reserves is 2.50 of TPF in Rupiah, effective 24 October 2009.
On 6 September 2005, Bank Indonesia issued a regulation No. 729PBI2005 concerning changes of Bank Indonesia Regulation No. 615PBI2004 on Statutory Reserves of Commercial Banks with
Bank Indonesia in Rupiah and foreign currency. This regulation was effective on 8 September 2005. In accordance with the regulation, regulated additional Statutory Reserves of Commercial Banks in
Rupiah for Banks with Loan to Deposits Ratio 50.00 to 60.00 were previously required to maintain an additional Rupiah statutory reserves of 3.00 of the third party funds in Rupiah and
commercial banks with third party funds more than Rp50,000,000 shall maintain additional Statutory Reserves of 3.00 of third party funds in Rupiah, therefore the minimum ratio of Statutory Reserves
which the Bank shall maintain is 11.00 for Rupiah and 3.00 for foreign currency
.
g. Placements with Bank Indonesia and Other Banks
