balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...
balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...
balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
NOTES ON THE ACCOUNTS*<br />
A. ACCOUNTING POLICIES<br />
The annual financial statements were drawn up in accordance with generally accepted accounting principles and with the<br />
general requirements to present a true and fair view <strong>of</strong> the state <strong>of</strong> the company's <strong>as</strong>sets, finances and earnings.<br />
The accounting, valuation and reporting <strong>of</strong> individual items were carried out in accordance with the general provisions <strong>of</strong><br />
the Austrian Commercial Code, the Austrian Companies Act and the applicable sections <strong>of</strong> the Austrian Banking Act in<br />
their respective current versions.<br />
B. REPORT OF EARNINGS<br />
A taxable entity w<strong>as</strong> formed according to the earnings transfer contract between RAIFFEISEN-HOLDING<br />
NIEDERÖSTERREICH-WIEN reg.Gen.m.b.H. (hereafter R-Holding) and RAIFFEISENLANDESBANK NIEDERÖSTERREICH-<br />
WIEN AG (hereafter RLB AG). As a result <strong>of</strong> this agreement, the total annual pr<strong>of</strong>its <strong>of</strong> RLB AG were paid to R-Holding.<br />
Therefore, the annual <strong>balance</strong> shows neither a pr<strong>of</strong>it nor a loss.<br />
C. ACCOUNTING CONVENTIONS AND VALUATION METHODS APPLIED IN THE BALANCE SHEET<br />
AND PROFIT AND LOSS ACCOUNT<br />
55<br />
I. Assets and liabilities quoted in foreign currencies were entered <strong>as</strong> <strong>of</strong> the <strong>balance</strong> <strong>sheet</strong> date using ECB reference rates.<br />
Foreign currency items where no ECB reference rate can be applied were quoted with market middle rates from reference<br />
banks.<br />
II.<br />
To the extent that interest rate swaps, options, foreign exchange futures and other derivative instruments are not used in<br />
hedging transactions treated for the purpose <strong>of</strong> valuation <strong>as</strong> part <strong>of</strong> underlying transactions, a portfolio value is applied,<br />
that is, all similar financial instruments are grouped in portfolios. For each individual transaction in the portfolio, the current<br />
market value is determined <strong>as</strong> <strong>of</strong> the <strong>balance</strong> <strong>sheet</strong> date. The resulting positive and negative market values are netted<br />
out. If the overall market value <strong>of</strong> the portfolio is negative, a provision for this amount is entered in the <strong>balance</strong> <strong>sheet</strong>.<br />
Financial derivatives held <strong>as</strong> trading <strong>as</strong>sets are <strong>as</strong>sessed at market value.<br />
III. Securities held <strong>as</strong> financial <strong>as</strong>sets are valued according to the modified lower-<strong>of</strong>-cost-or-market value principle. In accordance<br />
with § 2 Par. 3 <strong>of</strong> Trustee Securities Regulations, securities serving <strong>as</strong> cover for trustee accounts are shown <strong>as</strong> part <strong>of</strong><br />
fixed <strong>as</strong>sets and valued strictly at the lower <strong>of</strong> cost or market value.<br />
In accordance with § 56 Par. 2 <strong>of</strong> the Austrian Banking Act, the premium on securities acquired above par and held <strong>as</strong><br />
financial <strong>as</strong>sets is written down pro rata temporis.<br />
No prorated write-ups are performed for securities acquired below par.<br />
Unlisted securities held <strong>as</strong> current <strong>as</strong>sets are valued strictly at the lower <strong>of</strong> cost or market value.<br />
Listed securities treated <strong>as</strong> current <strong>as</strong>sets are shown at market value.<br />
*Disclosures subject to statutory reporting requirements