UBI Banca Group

Accounting policies
The accounting policies contained in Part A.2 concerning the classification, valuation and
derecognition phases are essentially the same as those adopted for the preparation of the 2010
annual financial statements.
The accounting policies employed tend to apply the cost criterion with the exception of the
following financial assets and liabilities, which are valued using the fair value criterion:
financial instruments held for trading (including derivative products), financial instruments
designated at fair value (in application of the fair value option) and available-for-sale financial
instruments.
To complete the information, non-current assets available for sale (and the liabilities
associated with them) have been recognised at the lower of the carrying amount and the fair
value (net of sales costs).
With regard to changes in IFRS, during the reporting year the European Commission
published EC Regulation 149/2011, which makes various slight changes to the IFRS as part
of the annual improvement process designed to simplify and clarify them.
These amendments, which became compulsory for the financial year 2011, concern various
standards as can be seen from the “List of IAS/IFRS standards adopted by the European
Commission” later in this report.
Application of the following EU regulations, published by the European Commission in 2010,
became compulsory in 2011:
• Regulation No. 574/2010 – “Amendments to IFRS 1 and IFRS 7”;
• Regulation No. 632/2010 – IAS 24 “Related party transactions”;
• Regulation No. 633/2010 – IFRIC 14 “The limit on a defined benefit asset”;
• Regulation No. 662/2010 – IFRIC 19 “Extinguishing financial liabilities with equity
instruments”.
The effect of these new standards is of a purely informative nature in this annual report.
Section 3 Consolidation scope and methods
The consolidated financial statements include the financial and operating results of UBI Banca
Scpa and the companies either directly or indirectly controlled by it, including within the
scope of the consolidation also those companies which operate in sectors different from that to
which the Parent belongs and the special purpose entities, when the conditions of effective
control exist, even in the absence of an equity stake, but in relation to what is termed
“business”.
The following principal changes occurred in the consolidation scope compared with the
situation as at 31 st December 2010.
Changes in the consolidation scope
‐ the disposal, on 27 th April 2011, of 30% of the share capital of BY You S.p.A.. As a
result of that sale the company and its subsidiaries are no longer consolidated with the
proportionate method. Due to the existence of a pledge on shares representing 10% of
the share capital with voting rights for UBI Banca, the company is recognised using the
equity method;
‐ on the basis of agreements concluded between the main shareholders and the company
Sopaf and the signing of a new shareholders’ agreement, the company Polis Fondi SGR
S.p.A. is now consolidated using the equity method instead of the previous
proportionate method;
‐ on 25 th November 2011, the securitisation transaction performed using the company
Sintonia Finance S.r.l. was redeemed in advance. That company was excluded from the
consolidation from that date;
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