PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2013 AND 2012
Expressed in millions of Rupiah, unless otherwise stated
Appendix 529 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
j. Marketable Securities continued
Reclassification of marketable securities to held to maturity classification from available for sale are recorded at fair value. Unrealised gains or losses are recorded in the equity section and will be
amortised up to the remaining live of the marketable securities using the effective interest rate method to consolidated statement of comprehensive income.
k. Government Bonds Government Bonds represent bonds issued by the Government of the Republic of Indonesia.
Government Bonds consists of Government Bonds from the recapitalisation program and Government Bonds purchased from the market.
Government Bonds are classified as financial assets at fair value through profit or loss, available for sale and held to maturity. Refer to Note 2c for the accounting policy of financial assets at fair value
through profit or loss, available for sale and held to maturity.
l. Other Receivables - Trade Transactions
Other receivables - Trade Transactions represent receivables resulting from contracts for trade- related facilities given to customers, which will be reimbursed on maturity.
Other receivables - Trade Transactions are classified as financial assets in loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
m. Securities PurchasedSold under ResaleRepurchase Agreements
Securities purchased under resale agreements are presented as assets in the consolidated statement of financial position at the agreed resale price less unamortised interest income and
allowance for impairment losses. The difference between the purchase price and the agreed selling price is treated as deferred unamortised interest income and amortised as income over the period,
commencing from the acquisition date to the resale date using the effective interest rate method.
Securities purchased under resale agreements are classified as financial assets in loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.
Securities sold under repurchase agreements are presented as liabilities in the consolidated statement of financial position at the agreed repurchase price net of the unamortised prepaid
interest. The difference between the selling price and the agreed repurchase price is treated as prepaid interest and recognised as interest expense over the period, commencing from the selling
date to the repurchase date using effective interest rate method. Securities sold under repurchase agreements are classified as financial liabilities at amortised cost.
Refer to Note 2c for the accounting policy for financial liabilties at amortised cost.
n. Derivative Receivables and Derivative Payables
All derivative instruments including foreign currency transactions for funding and trading purposes are recognised in the consolidated statement of financial position at their fair values. Fair value is
determined based on market value using Reuters rate at reporting date or discounted cash flow method.