balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...

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NOTES ON THE ACCOUNTS* A. ACCOUNTING POLICIES The annual financial statements were drawn up in accordance with generally accepted accounting principles and with the general requirements to present a true and fair view of the state of the company's assets, finances and earnings. The accounting, valuation and reporting of individual items were carried out in accordance with the general provisions of the Austrian Commercial Code, the Austrian Companies Act and the applicable sections of the Austrian Banking Act in their respective current versions. B. REPORT OF EARNINGS A taxable entity was formed according to the earnings transfer contract between RAIFFEISEN-HOLDING NIEDERÖSTERREICH-WIEN reg.Gen.m.b.H. (hereafter R-Holding) and RAIFFEISENLANDESBANK NIEDERÖSTERREICH- WIEN AG (hereafter RLB AG). As a result of this agreement, the total annual profits of RLB AG were paid to R-Holding. Therefore, the annual balance shows neither a profit nor a loss. C. ACCOUNTING CONVENTIONS AND VALUATION METHODS APPLIED IN THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 55 I. Assets and liabilities quoted in foreign currencies were entered as of the balance sheet date using ECB reference rates. Foreign currency items where no ECB reference rate can be applied were quoted with market middle rates from reference banks. II. To the extent that interest rate swaps, options, foreign exchange futures and other derivative instruments are not used in hedging transactions treated for the purpose of valuation as part of underlying transactions, a portfolio value is applied, that is, all similar financial instruments are grouped in portfolios. For each individual transaction in the portfolio, the current market value is determined as of the balance sheet date. The resulting positive and negative market values are netted out. If the overall market value of the portfolio is negative, a provision for this amount is entered in the balance sheet. Financial derivatives held as trading assets are assessed at market value. III. Securities held as financial assets are valued according to the modified lower-of-cost-or-market value principle. In accordance with § 2 Par. 3 of Trustee Securities Regulations, securities serving as cover for trustee accounts are shown as part of fixed assets and valued strictly at the lower of cost or market value. In accordance with § 56 Par. 2 of the Austrian Banking Act, the premium on securities acquired above par and held as financial assets is written down pro rata temporis. No prorated write-ups are performed for securities acquired below par. Unlisted securities held as current assets are valued strictly at the lower of cost or market value. Listed securities treated as current assets are shown at market value. *Disclosures subject to statutory reporting requirements
IV. Individual value adjustments or provisions are made for identifiable risks with respect to borrowers. V. The option of choosing the form of valuation provided for under § 57 Par. 1 of the Austrian Banking Act was not exercised. VI. Equity interests are valued at acquisition cost unless persistent losses or a reduction in equity require a write-down to fair value as of the balance sheet date. VII. Intangible fixed assets, land and buildings as well as fixtures, fittings and equipment are valued at acquisition or construction cost less scheduled depreciation. Scheduled depreciation is applied on a straight-line basis. The rates of depreciation vary between 2% and 33.3% for intangible assets, 2% and 4% for property, and 5% and 33.3% for movable assets. Capitalized goodwill is amortized on the basis of conservative estimates of useful economic life between 2 and 15 years. Extraordinary depreciation is applied in cases of expected long-term impairment. Minor assets are written off completely in the year of acquisition. VIII. Premiums or discounts on issue are written back over the term of the debt. Other issuing expenses are written off immediately. 56 IX. Pension obligations to pensioned employees are determined using an Ettl-Pagler table and an interest rate of 4.5%; standard entry age methods are used to project benefit obligations. The transitional provisions set forth under Article X of the Austrian Financial Reporting Act have not been applied. Pension obligations to current employees are determined using a Pagler-Pagler table and a discount rate of 3.5%; standard entry age methods are used to project benefit obligations. The calculation of provision values is based on the legal pensionable age under applicable pension regulations for men and women. There are also written, legally enforceable, irrevocable pension agreements for current employees in senior management positions and other persons entitled to benefits. These entitlements have been transferred to the ÖPAG Pensionskassen AG pension fund. Should pension assets be insufficient to fund the defined benefits at pensionable age, RLB AG is obliged to make up the difference either in the form of continuing top-up pension payments or in the form of a lump-sum payment. Since 2000, provisions have been made to cover such funding deficits. Provisions for current employees as of the balance sheet date are calculated according to principles of investment mathematics using a Pagler-Pagler table and a discount rate of 3.5%, and taking into account an average expected employment period. The calculation of provision values is based on the legal pensionable age under applicable pension regulations for men and women. Obligations for entitled persons with dormant or current pension claims who have already reached pensionable age are also entered at present value.
Page 1 and 2: BALANCE SHEET AS OF DECEMBER 31, 20
Page 3 and 4: BALANCE SHEET AS OF DECEMBER 31, 20
Page 5: PROFIT AND LOSS ACCOUNT 2003 2003 2
Page 9 and 10: 3. Debt securities and other fixed-
Page 11 and 12: 2.2. Supplementary capital The supp
Page 13 and 14: 2002 NOMINAL AMOUNTS MARKET VALUES
Page 15 and 16: F. SUPPLEMENTARY INFORMATION I. The
Page 17 and 18: STATEMENT OF FIXED ASSETS 2003 Acqu
Page 19 and 20: STATEMENT OF VALUATION RESERVES 200
Page 21 and 22: 70 OUR 951 EMPLOYEES: A Harald Adle

balance sheet as of december 31, 2003 - Raiffeisenlandesbank ...

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