UOB Annual Report 2002 - United Overseas Bank
UOB Annual Report 2002 - United Overseas Bank
UOB Annual Report 2002 - United Overseas Bank
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Notes to the Financial Statements<br />
for the financial year ended 31 December <strong>2002</strong><br />
2 Significant Accounting Policies<br />
(b) Basis of Consolidation (continued)<br />
(ii) The adjustments made to the comparative figures are to increase the assets and liabilities and to decrease the derivative<br />
financial instruments by the amounts shown below:<br />
The Group<br />
Increase/(Decrease)<br />
$’000<br />
Balance Sheet<br />
Assets<br />
Placements and balances with banks and agents 58,250<br />
Investment securities 473,937<br />
Other assets 16,359<br />
548,546<br />
Liabilities<br />
Debts issued 518,058<br />
Other liabilities 30,488<br />
548,546<br />
Off-Balance Sheet Items<br />
Derivative financial instruments (contract or underlying principal amount) (552,836)<br />
The adoption of the accounting policy has no effect on the results of the Group for the financial year ended<br />
31 December 2001.<br />
(c)<br />
Associates<br />
The Group treats as associates those companies in which the Group has a long-term equity interest of 20 to 50 percent and over<br />
whose financial and operating policy decisions it has significant influence except when the investment is acquired and held<br />
exclusively with a view to its subsequent disposal in the near future, in which case it is accounted for either as dealing securities<br />
or investment securities as appropriate.<br />
Associates are accounted for under the equity method whereby the Group’s share of profits less losses of associates is included<br />
in the consolidated income statement and the Group’s share of post-acquisition reserves, net of dividends received, are adjusted<br />
against the cost of investments to arrive at the carrying amount in the consolidated balance sheet.<br />
(d)<br />
Trade Bills and Advances to Customers<br />
Trade bills and advances to customers are stated at cost less provisions for possible losses. These provisions comprise specific<br />
provisions made for any debts considered to be doubtful of collection and a general provision maintained to cover losses which,<br />
although not specifically identified, are inherent in any portfolio of loans and advances. Known bad debts are written off.<br />
100
Change language