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 537 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
y. Deposits from Other Banks continued
Included in the deposits from other banks are sharia deposits in form of wadiah deposits, and Certificates Mudharabah Investment Bank SIMA. SIMA is an investment certificate issued by the
BSM which adopts profit sharing practice and in form of placement among banks. SIMA financing period ranges from 1 - 6 months.
Deposits from other banks are classified as financial liabilities at amortised cost. Incremental costs directly attributable to acquistion of deposits from other banks are included in the amount of deposits
and amortised over the expected life of the deposits. Refer to Note 2c for the accounting policy for financial liabilities at amortised cost.
z. Insurance Contract Insurance contracts is a contract under which the insurer accepts significant insurance risk from the
policyholders. Significant insurance risk is defined as the possibility of paying significantly more benefit to the policyholder upon the occurrence of insured event compared to the minimum benefit
payable in a scenario where the insured event does not occur. Scenarios considered are those with commercial substance.
The Subsidiary issues insurance contracts that accepted siginificant insurance risk from the policyholders. The Subsidiary defines significant insurance risk as the possibility of having to pay
benefits on the occurence of an insured event of at least 10 more than the benefits payable if the insured event did not occur.
Investment contracts are those contracts without significant insurance risk. Once a contract has been classified as an insurance contract, no reclassification is subsequently
performed unless the terms of the agreement are later amended.
The Subsidiary unbundles the deposit component of unit-linked contract when required by SFAS 62 when both the following conditions are met:
- The Subsidiary can measure separately the “deposit” component including any embedded
surrender option, i.e. w ithout taking into account the “insurance” component;
- The Subsidiary’s accounting policies do not otherwise require to recognise all obligations and
rights arising from the “deposit” component. No such condition currently exists within the Subsidiary. In accordance with SFAS 62, the Subsidiary
continues to use the accounting principles previously applied by the Subsidiary related to unit-linked contracts.
Liability adequacy tests Liability adequacy testing is performed at reporting date for contract individually or group of products
determined in accordance with the Subsidiary’s manner of acquiring, servicing and measuring the profitability of its insurance contracts.
For life insurance, the liabilities to policyholder in particular the liabilities for future claim is tested to determine whether they are sufficient to cover all related future cash out flow include all benefit
guaranteed and guaranteed embedded additional benefit, non guaranteed participation benefit feature if any, all the expense for policies issuance and maintaining the policies, as well as
reflecting the future cash inflow, i.e. premium receipt in the future. The liabilities are calculated based on discounted cash flow basis for all related cash flow i.e. both of cash outflow and cash
inflow as mentioned above using a set of most recent best estimate actuarial assumptions which is
set by the Subsidiary’s appointed actuary, include discount rate assumptions, mortalitymorbidity assumptions, lapse assumptions, expense assumptions and inflation assumptions as well as margin
for adverse deviation assumptions.
