PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
33
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Management is responsible for the preparation of the accompanying consolidated financial statements which were completed and authorised for issuance by the Board of Directors on January 30,
2017.
The consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards, and the Capital Market Supervisory Agency and Financial Institution Bapepam
and LK regulation No. VIII.G.7 Attachment of the Chairman of Bapepam and LK’s decree No. KEP-347BL2012 dated June 25, 2012, regarding “Financial Statements Presentation and
Disclosure for Issuer or Public Companies”. The principal accounting policies adopted in preparing the consolidated financial statements of the Bank
and Subsidiaries are set out below:
a. Basis of Preparation of the Consolidated Financial Statements
The consolidated financial statements have been prepared under the historical cost, except for financial assets classified as available for sale, financial assets and liabilities held at fair value
through profit or loss and all derivative instruments which have been measured at fair value since April 1, 2016. The consolidated financial statement are prepared under the accrual basis of
accounting, except for the consolidated statement of cash flows. Consolidated statements of cash flows are prepared using the direct method by classifying cash
flows in operating, investing and financing activities. Items within Other Comprehensive Income are classified separately, separating between accounts
which will be reclassified to Profit or Loss and accounts which will not be reclassified to Profit or Loss.
The financial statements of a Subsidiary company engaged in sharia banking have been prepared in conformity with the Statement of Financial Accounting Standards SFAS No. 101 Revised 2014,
“Presentation of Financial Statement for Sharia Banking”, SFAS No. 102 Revised 2013 “Accounting for Murabahah”, SFAS No. 104 “Accounting for Istishna”, SFAS No. 105 ”Accounting for
Mudharabah”, SFAS No. 106 “Accounting for Musyarakah”, SFAS No. 107 “Accounting for Ijarah”, SFAS No. 110 “Accounting for Sukuk” and other prevailing Statements of Financial Accounting
Standards, as long as not contradict with Sharia principle also Accounting Guidelines for Indonesian Sharia Banking PAPSI Revised 2013.
The preparation of consolidated financial statements in accordance with Indonesian Financial Accounting Standards requires the use of estimates and assumptions. It also requires management
to make judgments in the process of applying the accounting policies the Group. The area that is complex or requires a higher level of consideration or areas where assumptions and estimates could
have a significant impact on the consolidated financial statements are disclosed in Note 3. All figures in the consolidated financial statements, are rounded and presented in million rupiah
“Rp” unless otherwise stated.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
34
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
b. Changes in accounting policies The principle of accounting policies applied in the preparation of the consolidated Financial
Statements of the Bank and its subsidiaries are set out below: Effective on January 1, 2016, the Group has applied new standards and interpretation or revision
that are relevant to the Group’s operation effective from such date as follows: -
Amendments to SFAS No. 4: Separate Financial Statements on Equity Method in Separate Financial Statements
- Amendments to SFAS No. 15: Investments in Associates and Joint Ventures on Investment
Entities: Applying the Consolidation Exception -
Amendments to SFAS No. 16: Property, Plant and Equipment on Clarification of the Accepted Method for Depreciation and Amortization
- Amendments to SFAS No. 19: Intangible Assets on Clarification of the Accepted Method for
Depreciation and Amortization -
Amendments to SFAS No. 24: Employee Benefits on Defined Benefit Plans: Employee Contributions
- Amendments to SFAS No. 65: Consolidated Financial Statements on Investment Entities:
Applying the Consolidation Exception -
Amendments to SFAS No. 67: Disclosure of Interests in Other Entities on Investment Entities: Applying the Consolidation Exception
- SFAS No. 5 Improvement 2015: Operating Segments
- SFAS No. 7 Improvement 2015: Related Party Disclosures
- SFAS No. 13 Improvement 2015: Investment Property
- SFAS No. 16 Improvement 2015: Property, Plant and Equipment
- SFAS No. 19 Improvement 2015: Intangible Assets
- SFAS No. 25 Improvement 2015: Accounting Policy, Changes in Accounting Estimates, and
Errors -
SFAS No. 68 Improvement 2015: Fair value Measurement -
SFAS No. 110 Revised 2015: Accounting for Sukuk The above new and revised standards and interpretations which were effective from January 1,
2016 have no material impact to the Bank and Subsidaries’ consolidated financial statements. Changes in the Group’s accounting policy have been inline with the requirements in each standards
and interpretation.
c. Financial instruments A. Financial assets
The Group classifies its financial assets available for sale in the following categories of a financial assets at fair value through profit or loss, b loans and receivables, c financial assets
held-to-maturity, and d financial assets available-for-sale. The classification depends on the purpose for which the financials assets were acquired. Management determines the
classification of its financial assets at initial recognition.
a Financial assets at fair value through profit or loss This category comprises two sub-categories: financial assets classified as held for trading,
and financial assets designated by the Group as of fair value through profit or loss upon initial recognition.
