(Thai) Annual Report 2005 - United Overseas Bank

Fair values of securities are calculated on the following bases :
For Government securities and state enterprises securities, fair values are calculated by using the Bank of Thailand
formula, based on the risk free yield curve of the Bank of Thailand.
For listed equity securities, fair value is the last bid price quoted in The Stock Exchange of Thailand on the last
business day of the year.
For unit trust, fair value is the Net Assets Value (NAV) as at the end of the year.
For private enterprises debt securities, the last closing prices of the Thai Bond Market Association are used as fair
values. In the absence of such prices, fair values are determined by applying the aforementioned Bank of Thailand’s
yield curve adjusted for risk in accordance with the criteria established by the Bank of Thailand.
4.5 Securities purchased (sold) under resale (repurchase) agreements
The Bank enters into purchases (sales) of securities under agreements to resell (repurchase) securities at certain dates
in the future at a fixed price. Amounts paid for securities purchased subject to a commitment to be resold at a future
date are presented as securities purchased under resale agreements in the balance sheet. These receivables are
shown as collateralised by the underlying security.
Securities sold under repurchase agreements presented in the balance sheet are stated at amounts received from the
sale of those securities.
The difference between the sale and purchase considerations is recognised on an accrual basis over the period of the
transaction and is included in interest income or expense.
4.6 Loans
Loans include overdrafts, term-loans, trade bills, hire purchase and financial lease receivables and other loans.
All items categorised under loans (except for overdrafts) are disclosed as principal amount outstanding net
off unearned discounts received in advance, with accrued interest income added as a single line item for all the
instruments together.
Overdrafts are stated at the drawn amounts together with any accrued interest.
Discounts received in advance in respect of bills purchased and other unearned interest income are recognised
on an accrual basis over the period to maturity of the bills.
38 United Overseas Bank (Thai) Public Company Limited