Prospectus - Notowania

Reclassified Financial Assets
EC Regulation 1004 dated October 15, 2008 transposed the changes made to IAS 39 and IFRS 7 “Reclassification of
financial assets” by the IASB. These changes applied as from July 1, 2008 and allow, after initial recognition, the
reclassification of certain “held for trading” and “available for sale” financial assets.
The following may be reclassified:
� “Held for trading” and “available for sale” financial assets which would have complied with the IFRS definition of
loans and receivables (if they had not been recognized as “held for trading” and “available for sale” financial assets
on initial recognition), provided that the entity has the intention and ability to hold them for the foreseeable future or
to maturity.
� ”Only in rare circumstances” held for trading financial assets failed to satisfy the loans and receivables definition on
initial recognition and § 2 of the above Regulation noted that “the current financial crisis is considered one of such
rare circumstances that may justify the use of this option [sc. reclassification] by the entity”.
In H2 2008 and H1 2009 the Group reclassified, mostly in Loans portfolio, and - in small portion – in “held-to-maturity”
portfolio, the “ “held for trading” financial assets (other than derivatives or financial instruments with embedded derivatives)
and “available for sale” financial assets in respect of which there was no intention to sell due to reduced liquidity and
continuing market turmoil, which – according to § 2 above – can be considered as a “rare circumstance”.
It was considered that given inter alia the good fundamental underlying values the best profit strategy was to retain these
assets for the foreseeable future.
There reclassifications therefore more closely align accounting classification and management strategy in light of the changes
intention and capability to retain these assets instead of selling them in the short term.
As note, the Directors believe that their intrinsic value is higher than fair value, considering the significant negative impact on
the latter of the market’s reduced liquidity.
In addition to financial instruments reclassified in 2008, in H1 2009 further financial assets with a face value of €8,588 million
at September 30, 2009, almost entirely consisting of government, public sector, corporate and financial institutions’ bonds
(some of the last-named being guaranteed) and Covered Bonds and Pfandbriefe (OBGs), were reclassified.
These assets were recognized at fair value on the date of reclassification without reversing the impact on the income
statement for “held for trading” financial assets, whereas changes to the fair value of “available for sale” financial assets
recognized in equity up to the reclassification date will be amortized over the residual life of the asset.
These assets will subsequently be valued at amortized cost, adjusted where necessary to take account of write-downs and
write-backs resulting from valuation.
CONSOLIDATED INTERIM REPORT
AS AT SEPTEMBER 30, 2009
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