Annual Report - VÚB banka

the fair value of the assets given, equity instruments
issued and liabilities incurred or assumed at
the date of exchange, plus costs directly attributable
to the acquisition. Identifi able assets acquired
and liabilities and contingent liabilities assumed in
a business combination are measured initially at
their fair values at the acquisition date, irrespective
of the extent of any minority interest.
The excess of the cost of the acquisition over the
fair value of the VUB Group’s share of the identifi -
able net assets acquired is recognized as goodwill.
(b) Associates
Associates are entities, in which the Group has signifi
cant infl uence, but not control, over the fi nancial
and operating policies. The fi nancial statements
include the Group’s share of the total recognized
gains and losses of associates on an equity accounted
basis, from the date that signifi cant infl u-
ence commences until the date that signifi cant infl
uence ceases.
(c) Jointly controlled entities
Jointly controlled entities are entities over whose
activities the Group has joint control, established
by contractual agreement. The fi nancial statements
include the Group’s share of the total recognized
gains and losses of jointly controlled entities
on an equity accounted basis, from the date that
joint control commences until the date that joint
control ceases.
3.4 Segment reporting
The Group reports fi nancial and descriptive information
about its operating segments in these
fi nancial statements. An operating segment is a
component of the Group, that engages in business
activities from which it may earn revenues and incur
expenses (including revenues and expenses
relating to transactions with other components of
the Group), whose operating results are regularly
reviewed by the Group’s management to make decisions
about resources to be allocated to the segment
and to assess its performance, and for which
discrete fi nancial information is available.
The Group operates in three operating segments
– Retail banking, Corporate banking and Central
treasury. Each segment is exposed to different risks
and differs in the nature of its services, business
processes and types of customers for its products
and services.
For all segments the Group reports a measure of
segment assets and liabilities and income and expense
items, a reconciliation of total reportable
segment revenues, total profi t or loss, total assets,
liabilities and other amounts disclosed for reportable
segments to corresponding amounts in the
Group’s fi nancial statements.
Most of the transactions of the VUB Group are related
to the Slovak market. Because of the market
size, the VUB Group operates as a single geographical
segment unit.
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3.5 Foreign currency transactions
Monetary assets and liabilities in foreign currencies
are translated to Sk at the offi cial National Bank of
Slovakia (’NBS’) exchange rates prevailing at the
balance sheet date. Income and expenses denominated
in foreign currencies are reported at the NBS
exchange rates prevailing at the date of the transaction.
The difference between the contractual exchange
rate of a transaction and the NBS exchange rate
prevailing on the date of the transaction is included
in ‘Net trading income’, as well as gains and losses
arising from movements in exchange rates after the
date of the transaction.
VUB, a bank of Intesa Sanpaolo group