Annual Report 2005 - Bank am Bellevue

28
Consolidated financial statements
Notes
Comment on the actuarial calculation of pension obligations
The Swissfirst Group maintains two employee pension plans, one for its employees in Switzerland and one for its
employees in Liechtenstein. Both are legally set up as defined contribution plans but, in accordance with IAS 19,
they are disclosed as defined benefit plans. Although IFRS calculations indicate undercoverage, there is no undercoverage
according to Swiss or Liechtenstein law. The last actuarial calculation was performed on December 31,
2004 for the former Swissfirst Group and on December 31, 2005 for the companies acquired from the Bellevue
Group.
31.12.2005 31.12.2004
17. Fair value of financial instruments Book value Fair value Deviation Book value Fair value Deviation
CHF 1,000
Assets
Cash 317,267 317,267 0 39,222 39,222 0
Due from banks 485,687 485,687 0 223,292 223,292 0
Due from customers 371,940 372,862 922 393,336 393,336 0
Securities trading portfolios 80,287 80,287 0 37,029 37,029 0
Derivative financial instruments 43,371 43,371 0 21,647 21,647 0
Financial investments 196,223 196,640 417 133,770 134,762 992
1,494,775 1,496,114 1,339 848,296 849,288 992
Liabilities
Due to banks 92,830 92,830 0 137,129 137,129 0
Due to costumers 910,779 910,585 194 435,253 435,253 0
Derivative financial instruments and other trading liabilities 189,242 189,242 0 41,663 41,663 0
Debt issued 150,000 152,354 –2,354 0 0 0
1,342,851 1,345,011 –2,160 614,045 614,045 0
Difference between Fair value/Book value –821 992
The table shows the fair values of financial instruments, based on the valuation methods and assumptions
explained below:
Short-term financial instruments
Financial instruments with a term to maturity or refinancing profile of one year or less are generally classed
as short-term instruments. Depending on their maturity, these include the balance sheet items accounts
due to/from banks/customers, debt instruments issued and cash. For short-term financial instruments, it is
assumed that the book value corresponds to the fair value.
Long-term financial instruments
These include accounts due to/from banks/customers, debt instruments issued with a term to maturity or refinancing
profile of more than one year. Their fair value is determined using the present value method.
Securities trading portfolios, financial investments and derivative financial instruments
The fair value of these financial instruments is generally the same as their market value. If no market value is
available, the fair value is determined using recognized valuation models.