KB prezent. angl - Komerční banka

The Group assesses on a regular basis whether there is any objective evidence that a security carried in the available for sale portfolio
may be impaired. A financial asset is impaired if its carrying amount is greater than its estimated recoverable amount which is equal
to the present value of the expected future cash flows discounted at the financial instrument’s original effective interest rate.
The amount of the impairment loss for assets carried at amortised cost is calculated as the difference between the asset’s carrying
amount and its recoverable amount. When impairment of assets is identified, the Group recognises provisions through the profit and
loss statement line Provision for losses on securities.
(f) Tangible and intangible fixed assets
Tangible and intangible fixed assets are stated at historical cost less accumulated depreciation together with accumulated impairment
losses. Fixed assets are depreciated through the accumulated depreciation charge. Depreciation is calculated on a straight line basis
to write off the cost of each asset to their residual values over their estimated useful economic life. Land and assets in the course of
construction are not depreciated.
The estimated useful economic lives in years are set out below:
Machinery and equipment, computers, vehicles 4
Fixtures, fittings and equipment 6
Energy machinery and equipment 12
Distribution equipment 20
Buildings and structures 30
The Group periodically tests its assets for impairment. Where the carrying amount of an asset is greater than its estimated
recoverable amount, it is written down to its recoverable amount. Where assets are identified as being surplus to the
Group’s requirements, management of the Group determines a provision for an asset impairment. In respect of the assets owned by
the Group, the provision is assessed by reference to a net selling price based on third party valuation reports adjusted downwards for
an estimate of associated sale costs. Leasehold assets are provisioned by reference to the net present value of future costs and the
residual value of any technical improvements.
Repairs and renewals are charged directly to the profit and loss statement when the expenditure is incurred.
(g) Leases
Assets held under finance leases, which confer rights and obligations similar to those attached to owned assets, are capitalised at
their fair value and depreciated over the useful lives of assets. The capital element of each future lease obligation is recorded as
a liability, while the interest elements are charged to the profit and loss statement over the period of the leases to produce a constant
rate of charge on the balance of capital payments outstanding.
Payments made under operating leases are charged to the profit and loss statement on a straight line basis over the term of the
lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by
way of penalty is recognised as an expense in the period in which termination takes place.
(h) Provisions for guarantees and other off balance sheet credit related commitments
The Group recognises a provision when, and only when:
– It has a present obligation (legal or constructive) as a result of a past event;
– It is probable that the settlement of the obligation will cause an outflow of resources causing decrease of economic benefits;
– A reliable estimate can be made of the amount of the obligation.
In addition, the Group has established a restructuring provision. The Group recognises a provision for restructuring costs when it has
formulated a restructuring plan, and started to implement the restructuring plan or announced its main features. Information on
restructuring costs identified by the Group is given in Note 11.
In the normal course of business, the Group enters into credit related commitments which are recorded in off balance sheet accounts
and primarily include guarantees, letters of credit and undrawn loan commitments. Specific provisions are made for estimated losses
on these commitments on the same basis as set out in Note 3(d).