(Thai) Annual Report 2005 - United Overseas Bank

Land and buildings were appraised by an independent appraiser. The last revaluation was performed in 2001.
The increase resulting from the appraisal was recorded in the accounts as unrealised increment on the appraisal of
land and buildings and shown as part of shareholders‘ equity. Amortisation of the increment on the appraisal of
buildings is transferred direct to retained earnings (deficit).
4.13 Intangible assets
Intangible assets are stated at cost less accumulated amortisation. Amortisation is included as an expense in
the statement of earnings and is calculated using the straight-line basis over the estimated useful lives of the
assets as follows :
Leasehold rights
Application softwares
Others
Over the lease period
5 years
5 years
4.14 Provident funds and severance payment scheme
The Bank established the provident funds under the Provident Fund Act B.E. 2530 by joining The Registered
UOB Multiple Security Provident Fund and The Registered UOB Fixed Income Provident Fund on 29 December
2000 and The Registered UOB Treasury Provident Fund on 28 November 2005.
According to the Fund’s regulations, every employee, after the probation period, is entitled to apply for membership.
The employees contribute to the fund at the rate of 2% or 5% of basic salary and the Bank contributes to the fund
at the rate of 5% of basic salary. The employees are entitled to the benefits upon termination of employment
status except when the terminated employee has violated the rules of the Bank. Contributions to this fund made
by both the Bank and the employees commenced in January 2001.
The Bank’s subsidiaries also established their provident funds under the Provident Fund Act B.E. 2530. The Bank‘s
subsidiaries and their employees contribute to the fund at the same rate of between 3 - 10 percent of basic
salary depending upon the number of years of services of each employee. The funds will be paid to employees upon
termination in accordance with the rules of the funds.
The funds set up by the Bank and its subsidiaries are managed independently by UOB Asset Management
(Thai) Co., Ltd. and therefore do not appear in the consolidated or individual balance sheets of the Bank and
the relevant subsidiaries.
United Overseas Bank (Thai) Public Company Limited 41