Notes to the Consolidated Financial Statements - Seylan Bank

North Bound > Seylan Bank Annual Report 2011
273
The total profit/loss of the subsidiaries is included in the Consolidated Income Statement, and the
proportion of the profit or loss after taxation applicable to outside shareholders is shown under the heading
‘Minority Interest’. All assets and liabilities of the Bank and its subsidiaries are included in the Group
Balance Sheet. The interest of the outside shareholders in the net assets of the Group is stated separately
in the Consolidated Balance Sheet within Equity under the heading ‘Minority Interest’.
3.1.2 Transactions Eliminated on Consolidation
(a) Intra-Group Transactions
Intra-group balances and transactions and any unrealised gains arising from intra-group transactions, are
eliminated in preparing the Consolidated Financial Statements. Unrealised losses are eliminated in the
same way as unrealised gains except that they are only eliminated to the extent that there is no evidence of
impairment.
(b) Profit and Loss
In arriving at the profit attributable to the shareholders of Seylan Bank PLC, the total profits or losses of the
subsidiaries are included in the Consolidated Income Statement after eliminating intra-group transactions
and the portion of the profit or loss after taxation applicable to non-group shareholders.
(c) Assets and Liabilities
All assets and liabilities of the Bank and its subsidiary is included in the Consolidated Balance Sheet. The
proportionate interest of the non-group shareholders in the net assets employed is stated separately in the
Consolidated Balance Sheet under the heading ‘Minority Interest’.
(d) Non-Uniform Accounting Policies
The impact of non-uniform accounting policies adopted by subsidiaries has been adjusted in the consolidated
accounts. The details of the adjustments are disclosed in Note 50.
3.2 Foreign Currency Translation
Transactions in foreign currencies in Domestic Banking Unit are translated to Sri Lankan Rupees at the middle
rate of exchange ruling at the date of the transaction. Monetary items denominated in foreign currencies at
the Balance Sheet date are translated to Sri Lankan Rupees at the middle rate of exchange ruling at that date.
Foreign exchange differences arising on the settlement or reporting of the Bank’s monetary items at rates
different from those which were initially recorded are dealt in the Income Statement.
Non-monetary assets and liabilities denominated in foreign currency that are stated at historic cost at the
Balance Sheet date are translated to Sri Lankan Rupees at the foreign exchange rates ruling at that date.
Forward exchange contracts are valued at the forward market rates ruling on the date of the Balance
Sheet. Unrealised gains and losses are dealt with through the Income Statement.
Foreign Currency Banking Unit (FCBU) balances have been converted at closing rate for all monetary
items and historic rate for non-monetary items. Income Statement of the FCBU has been converted at the
monthly average rate. Differences arising from conversion are recognised in the Income Statement.