Letno poročilo 2009.pdf - UniCredit Banka Slovenija dd

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETSProperty, plant and equipment as well as intangible assets areinitially recognized at cost. The Bank has chosen for measurementafter recognition cost model, which means that an asset is carriedat its cost less any accumulated depreciation and any accumulatedimpairment losses.Depreciation is calculated on a straight-line basis. Land and assets inthe course of construction are not depreciated.The useful lives are set out below:31. 12. 2009 31. 12. 2008Leasehold improvements 10 years 10 yearsHardware 4 years 4 yearsFurniture, devices and motorvehichles4-10 years 4-10 yearsIntangible assets - software 5 years 5 yearsThe Bank periodically reviews the useful life and amends the periodof depreciation if appropriate.Leasehold improvements are capitalized and depreciated over thelesser of their useful life or the remaining lease term on a straightlinebasis.If of a minor extent, repairs and renewals are charged to the incomestatement when the expenditure is incurred.The Bank assesses whether assets may be impaired. If, and only if,the recoverable amount of an asset is less than its carrying amount,the carrying amount of the asset is reduced to its recoverableamount. That reduction is an impairment loss.A reversal of an impairment loss for an asset is recognizedimmediately in profit or loss.The carrying amount of an item of property, plant and equipmentis derecognized on disposal or when no future economic benefitsare expected from its use or disposal. The gain or loss arising fromderecognition of an item is included in profit or loss when the item isderecognized. The gain or loss arising from derecognition of an assetis determined as the difference between the net disposal proceeds, ifany, and the carrying amount of the item.Other assetsOther assets consist of prepaid expenses, accrued income, and otherassets that are not disclosed under any other item.Financial liabilitiesFinancial liabilities are recognized at fair value. After initialrecognition, the Bank measures all financial liabilities at amortizedcost using the effective interest method.The Bank had not yet recognized any financial liabilities at fair valuethrough profit or loss.The position “Financial Liabilities held for Trading” representsnegative market value of derivatives.ProvisionsA provision is recognized when the Bank has a present obligationas a result of a past event and when it is probable that an outflow ofresources embodying economic benefits will be required to settlethe obligation and a reliable estimate can be made of the amount ofobligation.Provisions are recognized for the following:• Potential losses relevant to the risks resulting from off-balancesheet items;• Jubilee awards and severance payments;• Pending or threatened litigation,• Other events, where the possibility of the outflow of the financialassets is very high.Cash flow statementFor the purpose of the cash flow statement, cash is defined as cashin hand and current accounts with banks, including the compulsoryminimum reserve with the Bank of Slovenia. Cash equivalents areshort-term, highly liquid investments that are readily convertible toknown amounts of cash and which are subject to an insignificant riskof changes in value.Employee benefitsThe Bank provides its employees with jubilee awards and severancepayments. The employees are entitled to claim jubilee awards incircumstances where they have been employed by the Bank fora defined period of time. The employees are entitled to receiveseverance payments if they are employed by the Bank until theirretirement age and were employed by the Bank for a minimumdefined period.Valuations of these obligations are carried out by independentqualified actuaries using projected unit credit method. The actuarialparameter and assumptions included in the calculation of theobligation are:•••••••Discount rate determined by reference to market yields as of thebalance sheet date on corporate bonds for the Euro-zone;Estimated future salary increases;Anticipated increase of jubilee awards;Mortality rates - Slovenian mortality table 2000-2002;Fluctuation (termination without payment) depending on theBank’s past experience in service time;Retirement age: 59 for women, 61 for men;The Bank’s most recent employee data (the length of employmentwith the Bank, age, gender, average salary);UniCredit Bank · 2009 Annual Report 177