UOB Annual Report 2002 - United Overseas Bank

(e)
Investments
(i) Singapore Government treasury bills and securities, other than those that are held as long-term investments, are stated at
the lower of cost and market value determined on an aggregate basis. Long-term Singapore Government securities are
stated at cost and provisions are made for diminution in value that is other than temporary, determined on an individual
counter basis.
(ii)
Other government treasury bills and securities are stated at the lower of cost and market value determined on an aggregate
basis.
(iii) Dealing securities are stated at the lower of cost and market value determined on an aggregate basis.
(iv) Investment securities, other than those held by the consolidated special purpose entity (“SPE”), and investments in subsidiaries
and associates are stated at cost and provisions are made for diminution in value that is other than temporary, determined
on an individual counter basis.
Investment securities held by the consolidated SPE are stated at fair value. Fair value for publicly quoted investments is based
on quoted market prices at the balance sheet date. Fair value for unquoted investments is based on other techniques, such
as estimated cash flows.
(f)
(g)
Cash and Cash Equivalents
For the purposes of the consolidated cash flow statement, cash and cash equivalents comprise the balance sheet amounts of
cash and balances with central banks and government treasury bills and securities, less non-cash equivalents included in those
amounts.
Revenue Recognition
(i) Interest income is accrued on a day-to-day basis.
(ii)
Dividend income from investments other than investments in subsidiaries is taken up gross in the income statements of the
accounting period in which the dividend is received.
(iii) Dividend income from subsidiaries is taken up gross in the income statements of the accounting period in which the
dividend is declared.
(iv) Profits and losses on disposal of investments are taken up in the income statements.
(v)
Fee and commission income and rental income are recognised on an accrual basis.
(h)
Fixed Assets and Depreciation
Fixed assets are stated at cost, or valuation for certain land and buildings, less accumulated depreciation. Fixed assets, other than
land and buildings, are depreciated on a straight-line basis over 5 or 10 years. Freehold land and leasehold land exceeding
99 years tenure are not depreciated. Other leasehold land is depreciated on a straight-line basis over the period of the lease.
Buildings are depreciated on a straight-line basis over 50 years or over the period of the respective leases, whichever is shorter.
UNITED OVERSEAS BANK 101