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

1 ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these consolidated financial
statements are set out below:
(a)
Basis of presentation
These consolidated financial statements are prepared in accordance with International
Financial Reporting Standards (hereinafter referred to as “IFRS”) including International
Accounting Standards (“IAS”) and Interpretations issued by International Accounting
Standards Board (“IASB”). The consolidated financial statements are prepared under
the historical cost convention as modified by the revaluation of available-for-sale securities,
trading securities, trading liabilities and all derivative contracts.
All amounts are shown in millions of Czech Crowns unless otherwise stated.
The preparation of financial statements in conformity with generally accepted accounting
principles requires the use of estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting
period. Although these estimates are based on management’s best knowledge of current
events and actions, actual results ultimately may differ from those estimates.
(b)
Consolidation
Subsidiary undertakings are those companies in which the Group, directly or indirectly, has
power to exercise control over financial and operating policies.
Subsidiaries are consolidated from the date on which effective control is transferred
to the Group and are no longer consolidated from the date that control ceases. The purchase
method of accounting is used to account for the acquisition of subsidiaries. The cost of an
acquisition is measured at the fair value of the assets given up, shares issued or liabilities
undertaken at the date of acquisition, plus costs directly attributable to the acquisition.
Intercompany transactions, balances and unrealised gains and losses on transactions between
group companies are eliminated. Where necessary, accounting policies of subsidiaries have
been changed to ensure consistency with the policies adopted by the Group.
The Bank sold its subsidiaries during 2003 and 2004 (ŽB – Asset Management, a.s.
on 30 December 2003 and ŽB – Trust, investiční společnost, a.s. on 7 January 2004) therefore
2004 figures do not include the net assets and the results of both subsidiaries. Comparative
figures per 2003 include the results and net assets of ŽB – Trust, investiční společnost, a.s.
and the results of ŽB – Asset Management, a.s..
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