2005 Annual Report / Crédit Agricole (Suisse) SA

64 – 2005 Annual Report / Crédit Agricole (Suisse) SA2. Accounting and valuationprinciplesGeneral principlesThe accounting and valuation principles comply with therequirements of the Swiss Code of Obligations, the SwissFederal Banking Act and the corresponding implementingOrdinance, as well as the Swiss Federal BankingCommission’s directives governing the preparation offinancial statements.Cash, receivables relating to money marketinstruments and commitmentsThese items are carried in the balance sheet at their nominalvalue. Specific provisions are raised for any receivablesdeemed doubtful and are charged directly against theassets concerned. Discounts on money market instrumentsare allocated to the income statement on an accrualsbasis through adjustment accounts. Accounting receivablesare carried in the balance sheet at their book value, whichis based on an accrual method valuation.Recording of transactions and presentationin the balance sheetTransactions are recorded in the books on their executiondate and are valued thereafter according to the principlesset out below. Until their settlement date, executedtransactions are presented as off-balance sheet transactions,except for spot forex and money markettransactions, which are directly recognised in thebalance sheet.Translation of foreign currency itemsThe Bank uses a multi-currency accounting system, andbalance sheet items denominated in foreign currency aretranslated at the closing exchange rate.Amounts due from banks and customers,mortgagesDoubtful receivables, i.e. receivables for which it isunlikely that the debtor will be able to meet his commitments,are valued individually and the write-down iscovered by valuation adjustments.When a receivable is deemed to be wholly or partiallyirrecoverable, it is written down by debiting the correspondingvaluation adjustment.A receivable is no longer deemed to be doubtful whenthe arrears (principal plus interest) have been settled,servicing of the debt has returned to normal and othersolvency criteria are met.Interest on fixed-term transactions and commissions onfiduciary operations in foreign currency are recorded inthe income statement on a daily basis, at the exchangerate prevailing on that day. All other income and expensesare recorded on the day they occur, using the rateprevailing at the time of the transaction.Securities and precious metals trading portfoliosSecurities acquired in the course of trading activitiesare marked to market.The closing exchange rates against the Swiss franc usedfor translating the Bank’s main foreign currency positionsare as follows :Currency2005 2004EUR 1.554 1.543USD 1.315 1.132JPY 0.011190 0.010961