UBI Banca Group

Exchange rate differences arising from a monetary item that forms part of a net investment in
a foreign operation of an entity that prepares financial statements are recognised in the
income statement of the separate company financial statements of the entity that prepares the
financial statements or the separate company financial statements of the foreign operation.
These exchange rate differences in the financial statements that include the foreign operation
(e.g. in the consolidated accounts when the foreign operation is a subsidiary) are initially
recognised as a separate component in equity and are recognised in the income statement at
the time of the disposal of the net investment.
When a profit or loss on a non-monetary item is recognised directly in equity, each change in
that profit or loss is also recognised directly in equity. However, when a profit or loss on a nonmonetary
item is recognised in the income statement each change in that profit or loss is
recognised in the income statement.
The financial statements of foreign subsidiaries and associates which employ an accounting
currency that is different from that of the Parent are translated using the exchange rates
ruling at the reporting date
14. Other information
14.1 Treasury shares
Treasury shares if present in the UBI Group portfolio are deducted from equity. No profit or
loss arising from the purchase, sale, issue or cancellation of treasury shares is recognised in
the income statement.
The differences between the purchase and sale price arising from these transactions are
recorded in equity reserves.
14.2 Provisions for guarantees granted and commitments
Provisions made on a case-by-case and collective basis to estimate possible payments to be
made connected with the assumption of credit risks attaching to guarantees granted and
commitments assumed are calculated by applying the same criteria as that reported for loans.
These provisions are recognised within the item 100 “Other liabilities” against the item in the
income statement 130d “Net impairment losses on: other financial transactions”.
14.3 Employee benefits
14.3.1 Definition
Employee benefits are defined as all forms of consideration given by a company in exchange
for services rendered by employees. Employee benefits can be classified as follows:
• short-term employee benefits (not including benefits due to employees for severance
payments and benefits paid in the form of equity instruments) due entirely within twelve
months after the service is rendered by employees;
• post-employment benefits due after the contract of employment has terminated;
• post-employment benefit plans subsequent to the termination of the employment contract
and that is agreements whereby the company provides benefits subsequent to the
termination of the employment contract;
• long-term benefits, other than the previous, due entirely within the twelve months
subsequent to the end of the financial year in which employee rendered the relative service.
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