2008 Annual Report Julius Baer Holding Ltd. - Julius Bär Gruppe

through depreciation of the capitalised leasehold
improvements over their useful life.
Subsequent expenditure on an item of property and
equipment is recognised in the carrying value of
the item if it is probable that the Group will profit
from the future economic benefits of the investment.
Current maintenance and servicing costs are
expensed through the income statement.
On each balance sheet date, the items of property
and equipment are reviewed for indications of impairment.
If such indications exist, it is determined
whether the carrying amount of the item is fully
recoverable. A write-down is made if the carrying
amount exceeds the recoverable amount.
Leasing
Under operating leasing, leased assets are not recognised
on the balance sheet, as the rights and responsibilities
of ownership remain with the lessor. Lease
payments for operating leases are recognised through
the item general expenses in the income statement
over the lease term on a straight-line basis.
Intangible assets
Intangible assets are classified into the following categories:
Goodwill: The assets, liabilities and contingent liabilities
of acquired subsidiaries are revalued at the
acquisition date. The resulting fair value of the identifiable
assets, liabilities and contingent liabilities is
set off against the purchase price paid, and any
resulting difference is recognised in the balance
sheet as goodwill. Goodwill is not amortised; it is
tested for impairment annually at the cash-generatingunit
level and a write-off is made if the recoverable
amount is less than its carrying amount.
Customer relationships: This position comprises longterm
customer relationship intangibles from recent
business combinations. Customer relationships are
amortised over their estimated useful life not exceeding
ten years using the straight-line method.
Brand: The Group considers the capitalised brand to
have an indefinite useful life. It is therefore not amortised,
but tested for impairment and confirmation of
its indefinite status on an annual basis.
Software: The Group capitalises costs relating to the
acquisition, installation and development of software
if it is probable that the future economic benefits that
are attributable to the asset will flow to the Group
and that the costs of the asset can be identified and
measured reliably. The capitalised software is amortised
using the straight-line method over its useful
life, usually not exceeding three to five years.
On each balance sheet date, the intangible assets
with a finite life are reviewed for indications of
impairment. If such indications exist, it is determined
whether the carrying amount of the intangible assets
is fully recoverable and a write-down is made if the
carrying amount exceeds the recoverable amount.
Due to banks and customers
Amounts due to banks and customers are initially
recognised at fair value less directly attributable
transaction costs and subsequently reported at
amortised cost. Interest and discounts are debited
to interest expenses on an accrual basis, using the
effective interest method.
Debt issued
Issued bonds are initially recognised at the fair value
of the consideration received, net of directly attributable
transaction costs. They are subsequently reported
in the balance sheet at amortised cost using the
effective interest method.
Own bonds that the Group holds as a result of
market-making activities or for resale in the near
term are treated as redemption and therefore are
extinguished.
Notes
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