Bilansi uspjeha - Raiffeisen Bank
Bilansi uspjeha - Raiffeisen Bank
Bilansi uspjeha - Raiffeisen Bank
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Notes to the financial statements<br />
31 December 2005 and 2004<br />
(all amounts are expressed in thousands of KM)<br />
Foreign currency translation<br />
Transactions in currencies other than Bosnia and Herzegovina KM are initially recorded at the rates of exchange<br />
prevailing on the dates of the transactions. Monetary assets and liabilities are translated at the rates prevailing on<br />
the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are<br />
retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are<br />
measured in terms of historical cost in a foreign currency are not retranslated. Profits and losses arising on translation<br />
are included in the statement of income for the period.<br />
The <strong>Bank</strong> values its assets and liabilities by middle rate of Central <strong>Bank</strong> of Bosnia and Herzegovina valid at the date<br />
of balance sheet. The principal rates of exchange set forth by the Central <strong>Bank</strong> and used in the preparation of the<br />
<strong>Bank</strong>’s balance sheet at the reporting dates were as follows:<br />
31 December 2005 EUR 1= KM 1.95583 USD 1=KM 1.657905<br />
31 December 2004 EUR 1= KM 1.95583 USD 1=KM 1.437687<br />
Off-balance sheet commitments<br />
In the ordinary course of business, the <strong>Bank</strong> enters into credit related commitments which are recorded in off-balance<br />
sheet accounts and primarily include guarantees, letters of credit and undrawn loan commitments. Such financial<br />
commitments are recorded in the <strong>Bank</strong>’s balance sheet if and when they become payable.<br />
Provisions<br />
Provisions for are recognised when the <strong>Bank</strong> has a present obligation as a result of a past event, and it is probable<br />
that the <strong>Bank</strong> will be required to settle that obligation. Management Board estimates the provisions based at the best<br />
estimate of expenditure to settle the <strong>Bank</strong>’s obligation. Provisions are discounted to present value where the effect is<br />
material.<br />
Reclassification<br />
Certain amounts in the previous year financial statements have been reclassified to conform with the current year<br />
presentation.<br />
Regulatory requirements<br />
The <strong>Bank</strong> is subject to the regulatory requirements of the Federal <strong>Bank</strong>ing Agency. These regulations include limits<br />
and other restrictions pertaining to minimum capital adequacy requirements, classification of loans and off balance<br />
sheet commitments and forming allowances to cover credit risk, liquidity, interest rate and foreign currency position.<br />
At year end the <strong>Bank</strong> was substantially in compliance with all regulatory requirements.<br />
Financial statement<br />
www.raiffeisenbank.ba<br />
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