Annual report 2004 (PDF, 4141 kB) - Unicredit Bank

(r)
Tangible and intangible fixed assets
Tangible and intangible fixed assets are recorded at cost. Fixed assets are
depreciated/amortised by applying the straight-line basis over the estimated useful lives:
Depreciation period
(years)
Buildings and constructions 50
Technical improvement on buildings classified as historical monuments 15
Technical improvement on leasehold buildings 10
Energy equipment 12
Machinery and equipment 6
Furniture and fittings 6
Motor vehicles 4
Software and other intangible property 2 – 5
IT Equipment 4
Repair and maintenance expenditures are charged to expense as incurred. Expenditures
enhancing the value of the asset are capitalised and depreciated.
(s)
Value added tax
The Bank is registered for value added tax (hereinafter “VAT”). Tangible and intangible fixed
assets and supplies are stated at cost including appropriate VAT. The Bank does not raise
claims for input VAT, since the ratio of income subject to VAT is lower than 5% of the total
income of the Bank.
(t)
Deferred tax
Deferred tax is determined at the tax rate effective for the period, when its realisation
is expected.
Deferred tax liability is recognised on all temporary differences between the carrying amount
of an asset or liability in the balance sheet and its tax base using the full liability method.
Deferred tax asset is recognised to the extent that it is probable that future taxable profit will
be available against which this asset can be utilised.
(u)
Staff costs and pensions
Staff costs are included in Administrative expenses and they include also board
and management emoluments.
The Bank provides to its employees contributions to a defined pension plan. Contributions
paid by the Bank are reflected directly as an expense. Regular contributions are made to the
state budget to fund the national pension plan.
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