balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...
balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...
balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...
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IV. Individual value adjustments or provisions are made for identifiable risks with respect to borrowers.<br />
V. The option <strong>of</strong> choosing the form <strong>of</strong> valuation provided for under § 57 Par. 1 <strong>of</strong> the Austrian Banking Act w<strong>as</strong> not exercised.<br />
VI. Equity interests are valued at acquisition cost unless persistent losses or a reduction in equity require a write-down to fair<br />
value <strong>as</strong> <strong>of</strong> the <strong>balance</strong> <strong>sheet</strong> date.<br />
VII. Intangible fixed <strong>as</strong>sets, land and buildings <strong>as</strong> well <strong>as</strong> fixtures, fittings and equipment are valued at acquisition or<br />
construction cost less scheduled depreciation. Scheduled depreciation is applied on a straight-line b<strong>as</strong>is. The rates <strong>of</strong><br />
depreciation vary between 2% and 33.3% for intangible <strong>as</strong>sets, 2% and 4% for property, and 5% and 33.3% for movable<br />
<strong>as</strong>sets. Capitalized goodwill is amortized on the b<strong>as</strong>is <strong>of</strong> conservative estimates <strong>of</strong> useful economic life between 2 and 15<br />
years. Extraordinary depreciation is applied in c<strong>as</strong>es <strong>of</strong> expected long-term impairment. Minor <strong>as</strong>sets are written <strong>of</strong>f<br />
completely in the year <strong>of</strong> acquisition.<br />
VIII. Premiums or discounts on issue are written back over the term <strong>of</strong> the debt. Other issuing expenses are written <strong>of</strong>f<br />
immediately.<br />
56<br />
IX. Pension obligations to pensioned employees are determined using an Ettl-Pagler table and an interest rate <strong>of</strong> 4.5%; standard<br />
entry age methods are used to project benefit obligations. The transitional provisions set forth under Article X <strong>of</strong> the<br />
Austrian Financial Reporting Act have not been applied.<br />
Pension obligations to current employees are determined using a Pagler-Pagler table and a discount rate <strong>of</strong> 3.5%; standard<br />
entry age methods are used to project benefit obligations. The calculation <strong>of</strong> provision values is b<strong>as</strong>ed on the legal<br />
pensionable age under applicable pension regulations for men and women.<br />
There are also written, legally enforceable, irrevocable pension agreements for current employees in senior management<br />
positions and other persons entitled to benefits. These entitlements have been transferred to the ÖPAG Pensionsk<strong>as</strong>sen<br />
AG pension fund. Should pension <strong>as</strong>sets be insufficient to fund the defined benefits at pensionable age, RLB AG is obliged<br />
to make up the difference either in the form <strong>of</strong> continuing top-up pension payments or in the form <strong>of</strong> a lump-sum payment.<br />
Since 2000, provisions have been made to cover such funding deficits. Provisions for current employees <strong>as</strong> <strong>of</strong> the <strong>balance</strong><br />
<strong>sheet</strong> date are calculated according to principles <strong>of</strong> investment mathematics using a Pagler-Pagler table and a discount<br />
rate <strong>of</strong> 3.5%, and taking into account an average expected employment period. The calculation <strong>of</strong> provision values is b<strong>as</strong>ed<br />
on the legal pensionable age under applicable pension regulations for men and women. Obligations for entitled persons<br />
with dormant or current pension claims who have already reached pensionable age are also entered at present value.