These consolidated financial statements are originally issued in Bahasa.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
46
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
d. Principles of consolidation continued
Business combination transaction amongst entities under common control, in form of transfer of business conducted for the purpose of reorganisation of entities under common control, does not
represent a change of ownership in terms of economic substance, therefore, there shall be no gain or loss recognised by the group as a whole and by individual entities within the group.
Since the business combination transaction amongst entities under common control does not cause a change in economic substance of ownership of the transferred business, therefore the
transaction is recognised at book value using the pooling interest method.
Changes in the Bank’s ownership interest in Subsidiaries that does not result in a loss of control is accounted for as an equity transaction, ie. a transaction with owners in their capacity as owners.
Any difference between the amount by when the non-controlling interest are adjusted and their fair value if the consideration paid or received shall be recognized directly in equity and attributable to
the owners of the parent.
The entity that accepts or releases a business in a combination or separation of business amongst entities under common control, shall recognise the difference between benefits being transferred
or received and the recorded amount of every business combination transaction as equity and present it under additional paid-in capitalshare premium.
e. Foreign currency transactions and balances
Subsidiaries and overseas branches Bank Mandiri maintains its accounting records in Indonesian Rupiah. For consolidation purposes,
the financial statements of the overseas branches and overseas Subsidiaries of Bank Mandiri denominated in foreign currencies are translated into Rupiah based on the following bases:
1 Assets and liabilities, commitments and contingencies - using the Reuters spot rates at the
consolidated statement of financial position date. 2
Revenues, expenses, gains and losses - using the average middle rates during each month when the transaction occurs.
3 Shareholders’ equity accounts - using historical rates on the date of transaction.
4 Statements of cash flows - using the Reuters spot rates at the reporting 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
statement of financial position.
Transactions and balances in foreign currencies Transactions in currencies other than Rupiah are recorded into Rupiah by using rates on the date
of the transactions. At consolidated statement of financial position date, all foreign currencies 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, 2015 and 2014. The resulting gains or losses are credited or charged to the current year’s consolidated statements of profit or loss and other
comprehensive income.
These consolidated financial statements are originally issued in Bahasa.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
47
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
e. Foreign Currency Transactions and Balances continued
Transactions and balances in foreign currencies continued The exchange rates used against the Rupiah at the dates of the consolidated statement of
financial position are as follows amounts in full Rupiah:
2015 2014
Great Britain Pound Sterling 1Rp 20,439.02
19,288.40 Euro 1Rp
15,056.67 15,053.35
United Stated Dollar 1Rp 13,785.00
12,385.00 Japanese Yen 100Rp
11,452.00 10,356.00
Other foreign currencies are not disclosed as above since it is considered not material in the translation of transaction in foreign currencies of the Bank and Subsidiaries.
f. Transactions with related parties
The Bank and Subsidiaries enter into transactions with parties which are defined as related parties in accordance with Statement of Financial Accounting Standards SFAS No. 7 regarding “Related
Party Disclosures” and Regulation of OJK formerly Bapepam and LK No. KEP-347BL2012, dated June 25, 2012 regarding “Financial Statements Presentation and Disclosure of Issuers or
Public Companies”, which are defined, among others, as:
I. Entities under the control of the Bank and Subsidiaries;
II. Associated companies;
III. Investors with voting rights which gives them significant influence; IV. Entities controlled by investors under Note III above;
V. Key employees and their family members; and VI. Entity that is controlled, jointly controlled or significantly influenced by Government, which is
defined as the Minister of Finance or Provincial Government who has share ownership in the entity.
All significant transactions with related parties have been disclosed in Note 55.
g. Cash and cash equivalents
Cash and cash equivalents consist of cash, current accounts with Bank Indonesia and current accounts with other banks and other short term highly liquid investments with original maturities of
3 three months or less.
h. Current accounts with Bank Indonesia and other banks
The minimum statutory reserve Current accounts with Bank Indonesia and Other Banks are classified as loans and receivables.
Refer to Note 2c for the accounting policy of loans and receivables.
