Annual Report 2012 - Raiffeisen Bank Kosovo JSC

can be subject to provisioning. For significant exposures, the assessment is done individually. In case of portfolio based
assessment the portfolio-building and calculation of portfolio-based provisions has to be made as indicated in the
impairment of Loans and Advances
3.16. Employee benefits
The Bank pays only contributions to publicly administered pension plan on a mandatory basis. The Bank has no further
payment obligations once the contributions have been paid. The contributions are recognized as employee benefit
expense when they are due.
3.17. Operating leases
Payments made under operating leases are charged to expenses on a straight-line basis over the term of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the
lesser by way of penalty is recognized as an expense in the period in which termination takes place.
3.18. Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognized in the separate statement
of comprehensive income except to the extent that it relates to items recognized directly in equity, in which case it
is recognized in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilized. Deferred tax liabilities are recognized for all taxable temporary
differences. Deferred tax assets and deferred tax liabilities are reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax benefit and tax obligation, respectively will be realized.
Additional income taxes that arise from the distribution of dividends are recognized at the same time as the liability to
pay the related dividend is recognized.
3.19. Share capital
Dividends on ordinary shares are recognized in equity in the period in which they are approved by the Bank’s
shareholders.
3.20. Adoption of new and revised standards
(a) Standards and Interpretations effective in the current period
The following amendments to the existing standards issued by the International Accounting Standards Board and
interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current
period:
Amendments to IFRS 1 “First-time Adoption of IFRS” - Severe Hyperinflation and Removal of Fixed Dates for First-
Amendments to IFRS 7 “Financial Instruments: Disclosures” - Transfers of Financial Assets (effective for annual
Amendments to IAS 12 “Income Taxes”
The adoption of these amendments to the existing standards and interpretations has not led to any changes in the Bank’s
accounting policies, statement of financial position and performance.
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Addresses Glossary Financial Statements Segment Reports Overview Macroeconomic Environment RBI Vision and Mission Management Board Introduction