Annual Report 2007 - Investing In Africa

Annual Report 2007
Accounting
Policies
1. General Information
Ecobank Transnational Incorporated (ETI) and
its subsidiaries (together, the group) provide
retail, corporate banking and investment banking
services throughout Sub Saharan Africa, outside
South Africa. The group has operations in over
22 countries and employs over 8,000 people.
Ecobank Transnational Incorporated is a limited
liability company and is incorporated and
domiciled in the Republic of Togo. The address
of its registered office is as follows: 2 Avenue
Sylvanus Olympio, Lome, Togo. The company
has a primary listing on the Ghana Stock
Exchange, Nigeria Stock Exchange and the
Bourse Regionale Des Valeurs Mobilieres
(Abidjan) Cote D'Ivoire
2. Summary of Significant Accounting
Policies
The principal accounting policies applied in the
preparation of these financial statements are
set out below. These policies have been
consistently applied to all the years presented,
unless otherwise stated.
2.1 Basis of Presentation
The groups consolidated financial statements
have been prepared in accordance with
International Financial Reporting Standards
(IFRS). The consolidated financial statements
have been prepared under the historical cost
convention, as modified by the revaluation of
available for sale financial assets, financial
assets and financial liabilities held at fair value
through the profit or loss and all derivative
contracts.
The preparation of financial statements in
conformity with IFRS requires the use of certain
critical accounting estimates. It also requires
management to exercise its judgement in the
process of applying the Company's accounting
policies. The area involving a higher degree of
judgement or complexity, or areas where
assumptions and estimates are significant to the
consolidated financial statements, are disclosed
in Note 4.
(a) Standards, amendment and interpretations
effective in 2007
IFRS 7, 'Financial instruments: Disclosures', and
the complementary amendment to IAS 1,
'Presentation of financial statements – Capital
disclosures', introduces new disclosures relating
to financial instruments and does not have any
impact on the classification and valuation of the
group’s financial instruments.
IFRIC 11, 'IFRS 2 – Group and treasury share
transactions', was adopted in 2007. IFRIC 11
provides guidance on whether share-based
transactions involving treasury shares or involving
group entities should be accounted for as
equity-settled or cash-settled share-based payment
transactions in the stand-alone accounts of the
parent and group companies. This interpretation
does not have an impact on the group’s financial
statements. Share based payments under the
management share option plan was recognised
in equity.
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