PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Principles of Consolidation continued 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 middle rates as published by Bank Indonesia at the balance sheet date.
2 Revenues, expenses, gains and losses - using the average middle rates during each month in
the financial reporting period. 3
Shareholders’ equity accounts - using historical rates. 4
Statements of cash flows - using the middle rates as published by Bank Indonesia at the balance sheet date, except for income and loss statement balances which are translated using
the average middle 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.
c. Foreign Currency Transactions and Balances Bank Mandiri maintains its accounting records in Indonesian Rupiah. Transactions in currencies other
than Rupiah are recorded at the prevailing rates of exchange 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 December 31, 2007 and 2006. The resulting gains or losses are credited or charged to the current year’s consolidated
statement of income. The exchange rates used against the Rupiah were as follows in full amount of Rupiah:
December 31, 2007 December 31, 2006
Great Britain Pound Sterling 1Rp 18,760.64
17,616.19 Euro 1Rp
13,821.80 11,846.25
US Dollar 1Rp 9,393.00
9,003.00 Japanese Yen 100Rp
8,384.00 7,563.00
d. Transactions with Related Parties Bank Mandiri and Subsidiaries enter into transactions with related parties as defined in SFAS No. 7 -
“Related Party Disclosures”. All significant transactions with related parties, whether or not conducted under normal terms and
conditions as those with third parties, are disclosed in Note 47. 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.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
