Annual Report 2012 - Bank Sarasin

The value of goodwill items is reviewed
every year at the level of the smallest
cash generating unit.
Leasing
Expenditure connected with operating
leases (ownership rights and duties
relating to the object of the leasing
contract remain vested in the lessor) is
charged to “general administrative
expenses”.
Taxes and deferred taxes
Current income taxes are calculated on
the basis of the applicable tax laws in
individual countries and recorded as an
expense in the period in which the related
profits are made. They are entered in the
balance sheet as tax liabilities. Tax
effects arising from timing differences
between the carrying value of assets and
liabilities in the consolidated balance
sheet and their corresponding tax values
are recorded as deferred tax assets and
deferred tax liabilities respectively.
Deferred tax assets arising from timing
differences and from loss carry-forwards
eligible for offset are capitalised only if it
seems likely that sufficient taxable profits
will be available against which those loss
carry-forwards can be offset. Deferred tax
assets and liabilities are calculated at the
tax rates expected to apply in the period
in which they are either realised or
settled. Tax liabilities and assets are
offset against each other when they refer
to the same taxable entity and the same
tax authority and where there is an
enforceable right to offset. Deferred taxes
are credited or charged directly to
shareholders’ equity if they relate to items
that are directly credited or charged to
shareholders’ equity in the same period or
a different one.
Pension plans
The Sarasin Group operates a number of
pension plans for its employees in
Switzerland and abroad. They include both
defined benefit and defined contribution
plans.
In the case of defined benefit plans, the
costs for the year under review are
determined through appraisals prepared
by outside actuaries. The benefits
provided under these plans are generally
based on the number of years that
contributions have been paid, age and
insured salary.
For separately funded defined benefit
plans, the degree of coverage of the cash
value of claims compared with the plan’s
assets, valued at market prices, is
reported in the balance sheet as a liability
or an asset, bearing in mind unrecorded
actuarial profits or losses and claims that
still have to be offset (projected unit credit
method). A pension plan surplus is
reported only if it is economically
beneficial to the Sarasin Group.
The Sarasin Group reports part of the
actuarial gains and losses as income or
expenditure if total cumulative unreported
actuarial gains and losses at the end of
the previous reporting period exceed the
predetermined limit of 10% of the cash
value of either the pension plan liabilities
or the pension plan assets, whichever is
higher.
Debt instruments issued
Debt instruments issued are recognised
initially at fair value less transaction costs
and subsequently at amortised cost using
the effective interest method. In doing so,
the difference between the issue price
and repayment amount is amortised over
the term of the debt instrument.
Results per share
The undiluted results per share are
calculated by dividing shareholders’ group
result or net loss for the reporting period
by the weighted average number of
outstanding shares in this period (minus
treasury shares).
The diluted results per share are
calculated using the same method, but
the determining amounts are adjusted in
order to reflect the potential dilution that
Bank Sarasin & Co. Ltd, Annual Report 2012 | 22