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 514 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
a. Basis of Preparation of the Consolidated Financial Statements continued
Consolidated statements of cash flows are prepared using the direct method by classifying cash flows in operating activities, investing and financing activities.
The financial statements of a Subsidiary company engaged in sharia banking have been prepared in conformity with the Statement of Financial Accounting Standards SFAS 101, “Presentation of
Financial Statement for Sharia Banking”, SFAS 102 “Accounting for Murabahah”, SFAS 104 “Accounting for Istishna”, SFAS 105 ”Accounting for Mudharabah”, SFAS 106 “Accounting for
Musyarakah ”, SFAS 107 “Accounting for Ijarah”, SFAS 110 “Accounting for Sukuk” Accounting
Guidelines for Indonesian Sharia Banking PAPSI and other Statements of Financial Accounting Standards established by the Indonesian Institute of Accountants and also accounting and reporting
guidelines prescribed by the Indonesian banking regulatory authority and Bapepam and LK. The preparation of 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 as disclosed in Note 3.
All figures in the consolidated financial statements, are rounded and presented in million rupiah Rp unless otherwise stated.
b. Changes in accounting policies On 1 January 2013, the Group implemented new statements of financial accounting standards
SFAS and the withdrawal of SFAS and revision, effective starting on that date. Changes to the Group’s accounting policies has been made, in accordance with the transitional provisions in the
respective standards and interpretations. Implementation of the new or revised standards, which are relevant to the Groups operations and
have impacts on the consolidated financial statements, are as follows:
b.i. SFAS 60 - Financial Instruments: Disclosures On 19 October 2012, Financial Accounting Standard Board of Indonesian Accountant Institute
DSAK-IAI issued enhancement to the SFAS 60 which became effective on 1 January 2013. Early implementation of the enhancements was permitted. The Group has decided to early
adopt SFAS 60 in the financial year ended 31 December 2012, and therefore it has no impact to the financial statements for the year ended 31 December 2013.
The enhancements mainly relate to the disclosure of financial assets, including the withdrawal of requirements to disclose:
1
Fair value of collateral held as security for financial assets both “past due but not yet impaired” and “impaired”; and,
2 Carrying amount of financial asset that are neither past due nor impaired whose terms have been renegotiated.
