Annual Report LRP 2007 - Rheinland Pfalz Bank

64 LRP 2007 CONSOLIDATED FINANCIAL STATEMENTS
condition and the supplementary GAS 5 or 5-10 risk report
are excluded from this provision. The statement of
financial condition including the separate report on the
opportunities and risks relating to future development
(Risk Report) pursuant to § 315 of the HGB is printed on
page 44 et seq. of this Annual Report. The risk report
contains the disclosures in respect of the occurrence,
measurement and control of credit, liquidity and market
risks required by IFRS 7.31 et seq.
An overview of the Standards and Interpretations applied
is provided in Note (2) “Standards Applied”.
FUTURE APPLICATION OF NEW STANDARDS
Segment reporting pursuant to IFRS 8 follows the
“Management Approach”.
In the assessment of the LRP Group, the effects of the
revision version of IAS 23 “Borrowing Costs” on the
presentation of net assets, financial position and results
of operations are expected to be of secondary importance,
since there have been no qualifying assets
up to now.
The changes to IAS 1 will primarily affect the presentation
and contents of the income statement, as well as
the statement of recognized income and expense. If a
method of accounting was applied retrospectively, a
balance sheet item had to be corrected retrospectively
or a balance sheet item was reclassified at the balance
sheet date, a further comparative period will need to be
added to the balance sheet.
ACCOUNTING POLICIES
(1) Accounting Principles
The consolidated financial statements are based on the
going concern principle.
The consolidated financial statements are prepared on
a historical cost and fair value basis. Fair value is used
in the case of investment property, investment securities
classified as available-for-sale financial assets, derivative
financial instruments and financial assets and
liabilities at fair value through profit and loss. Interest
income and interest expense are accrued on a pro rata
basis. Interest income and interest expense are presented
using the effective interest method or, if expedient,
accrued using a method that approximates the effective
interest method. Borrowing costs are generally
recognized as an expense in the period in which they
have been incurred.
In accordance with IAS 27.28, financial statements in
the LRP Group are prepared using uniform accounting
policies. All fully consolidated companies have prepared
their annual financial statements as of the reporting
date 31 December 2007.
Estimates, judgements, and assumptions are a necessary
part of recognition and measurement under IFRS.
The best possible estimates are made in conformity
with the respective Standards. Estimates, judgements,
and assumptions mainly relate to the calculation of the
fair value of financial instruments and investment
property, the value of assets, and the calculation of the
The report currency is the euro (W). The amounts in the
balance sheet are usually in millions of euros (W millions),
while those shown in the income statement are
in thousands of euros (W thousands), percentages being
rounded to the nearest whole number. The reporting
year is the calendar year.