UBI Banca Group

8.4.3. Derecognition criteria
Intangible assets are derecognised following disposal or when no economic future benefit is
expected from its use or disposal.
9. Liabilities, securities issued (and subordinated liabilities)
The various forms of interbank and customer funding are recognised in the balance sheet
items 10 “Due to banks”, 20 “Due to customers” and 30 “Securities issued”. These items also
include liabilities recognised by a lessee in financial leasing operations.
9.1 Recognition criteria
The liabilities in question are recognised in the balance sheet at the time when the funding is
received or when the debt securities are issued.
The amount initially recognised is the fair value, which is normally the same as either the
consideration received or the issue price, inclusive of any additional expenses or income that
are directly attributable to the transaction and determinable from the outset, regardless of
when they are paid.
The amount of the initial recognition does not include all those costs that are reimbursed by
the creditor counterparty or that are attributable to internal costs of an administrative
character.
9.2 Measurement criteria
After initial recognition, medium to long-term financial liabilities are measured at amortised
cost using the effective interest method as defined in previous paragraphs.
Short-term liabilities, for which the time factor is insignificant, are measured at cost.
9.3 Derecognition criteria
Financial liabilities are derecognised when they expire or are extinguished.
The repurchase of own securities issued results in derecognition of the securities with the
consequent redefinition of the liability for debt instruments issued. Any difference between the
repurchase value of the own securities and the corresponding carrying value of the liabilities is
recognised in the income statement under the item 100 “Income from the disposal or
repurchase of d) financial liabilities”. Any subsequent re-issue of the securities previously
subject to derecognition in the accounts constitutes a new issue for accounting purposes with
the consequent recognition at the new issue price without any effect in the income statement.
10. Tax assets and liabilities
Tax assets and liabilities are stated in the balance sheet under the items 140 “Tax assets” and
80 “Tax liabilities”.
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