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Annual financial statements
Cost of company issues
Issue costs and premium or discount are distributed evenly over
the term of the debt.
Pension provision
The pension provisions have been calculated according to recog-
nised actuarial principles, applying the entry age normal method,
based on a technical interest rate of three per cent (2011: four per
cent), using the Pagler & Pagler mortality tables (AVÖ 2008) and
taking the individual retirement age into account. No staff turnover
deduction was made. Monetary value adjustments are allowed for
by using the real interest rate.
Provision for redundancy payments and similar
obligations
Provisions for redundancy payment obligations as of the balance
sheet date have been calculated according to principles of math-
ematical finance, applying an interest rate of three per cent (2011:
four per cent) and and taking the individual retirement age into ac-
count. Provisions for the obligation to pay long-service bonuses
have been calculated according to principles of mathematical fi-
nance in similar fashion to the redundancy payment obligations.
No staff turnover deduction was made. Monetary value adjust-
ments are allowed for by using the real interest rate.
Other provisions
Applying the prudence principle, the other provisions take into ac-
count all discernible risks at the time of preparing the statements,
as well as all probable or certain liabilities of uncertain proportions,
for the purpose of setting aside the amounts necessary in our rea-
sonable commercial judgement.
Liabilities
Liabilities are recognised at the higher of their nominal value or re-
demption value.
Valuation of derivatives
Derivative financial instruments are recognised at their market val-
ues. When forming valuation units, the market values of derivatives
are not booked. The market value is the amount for which the fi-
nancial instruments could be bought or sold under fair conditions
on the balance sheet date. If stock exchange prices were available,
these were used for valuation purposes. In the case of financial in-
struments with no stock market price, we used internal valuation
models applying current market parameters, in particular the cash
value method and the option price model.
Note concerning means of disclosure pursuant
to Section 26 of the BWG
Pursuant to Section 26 of the BWG, banks are required to disclose
information about their organisational structure, risk management
and risk capital situation at least once a year. This information is
published on RLB Tirol AG’s website at www.rlb-tirol.at.