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Annual financial statements
General principles
These annual financial statements have been prepared in ac-
cordance with the provisions of the Austrian Banking Act (Bank-
wesengesetz – BWG), Directive (EU) No. 575/2013 (CRR – Capital
Requirements Regulation) and the Austrian Commercial Code (Un-
ternehmensgesetzbuch – UGB in the version applied before the
RÄG 2014, BGBl l 2015/22). The annual financial statements were
compiled in accordance with generally accepted accounting princi-
ples and in compliance with the general requirement to convey as
accurate as possible a picture of the company’s net assets, finan-
cial position and earnings performance. The annual financial state-
ments were drawn up in compliance with the principle of complete-
ness.
When valuing individual assets and debts, we complied with the
principle of individual valuation and acted on the assumption of the
company’s continued existence.
We applied the prudence concept in that only those profits realised
by the balance sheet date are reported. All discernible risks and
impending losses have been taken into account.
Currency conversion
Pursuant to section 58, paragraph 1 of the BWG, amounts in for-
eign currencies are converted at the ECB reference rates or, if
these are not published, at the mean currency exchange rate (RZB
fixing).
Pursuant to section 58, paragraph 2 of the BWG, forward transac-
tions are converted at the forward rate on the balance sheet date.
Securities
Fixed-interest securities held as fixed assets are valued either ac-
cording to the diluted lower-value principle or pursuant to section
56, paragraph 2 of the BWG. Other securities held as fixed assets
are valued according to the strict lower-value principle.
Securities forming the cover fund for trust fund monies are fixed as-
sets and, pursuant to section 2, paragraph 3 of the Austrian regula-
tion on the protection of money held in trust (Mündelsicherheitsver-
ordnung), are valued according to the strict lower-value principle.
Pursuant to section 207 of the UGB, securities held for trading and
in the current assets are valued according to the strict lower-value
principle. Current asset securities procured to cover company is-
sues are posted at market value. Securities issued by the company
and held as current assets are reported at their redemption values
Notes:
Accounting policies
Loans, contingent liabilities and credit risks
Individual impairments or provisions were formed to cover all dis-
cernible credit risks. As in the previous year, this was done only
in the event of a default. In the case of non-defaulted receivables
from customers, we availed ourselves of the option of applying a
portfolio impairment and an additional reserve in line with the dis-
cretion allowed under section 57, paragraph 1 of the BWG for item
4, ‘Receivables from customers’. Drawdown charges are recog-
nised in the income statement in the year in which the credit is
granted.
Investments
Investments are valued at their costs of acquisition. Unscheduled
depreciation is applied if, due to sustained losses, reduced equity
and/or reduced earning power, a loss of value has occurred that is
expected to be permanent.
Property, plant and equipment and intangible
fixed assets
Pursuant to section 55, paragraph 1 of the BWG in conjunction
with section 204 of the UGB, property, plant and equipment are
valued at their costs of acquisition or manufacture less scheduled
depreciation.
Additions made during the first half of the financial year are subject
to the full annual depreciation rate, and additions during the sec-
ond half year to half of that rate.
Low-value assets are written off fully in their respective year of ac-
quisition.
The useful life on which the scheduled depreciation is based rang-
es from five to 67 years in the case of immobile assets and three to
20 years in the case of mobile assets.
Non-scheduled depreciation is undertaken in the event of probable
long-term losses of value.
Cost of company issues
Issue costs and premium or discount are distributed evenly over
the term of the debt.