A4 für Copyshop GB.indd - Bayerische Landesbank

148 Report by the Board of Administration, accounts of BayernLB and the BayernLB Group and notes to the accounts
Notes to the accounts and consolidated accounts
The notes below relate to both the annual accounts at Bank level and the consolidated
annual accounts of Bayerische Landesbank (BayernLB) pursuant to Section 298, Sub-
section 3 of the German Commercial Code (HGB). Unless otherwise stated the notes
apply to both accounts. All figures are shown in millions of euros.
The annual accounts at Bank level and the consolidated annual accounts have been
prepared in accordance with the provisions of HGB and the Ordinance Regulating the
Accounting Requirements for Financial Institutions and Financial Service Providers
(RechKredV). The layout of our balance sheets and our profit and loss accounts corre-
sponds to the forms pursuant to the RechKredV Ordinance and also includes the items
stipulated for building societies (Bausparkassen).
Accounting policies
The valuation of assets and liabilities adheres to the general valuation provisions of
Section 252 ff. HGB, taking account of the special provisions applicable to banks (Sec-
tion 340e ff. HGB).
Claims are reported at the nominal amount or at cost. Low-interest or non-interest
bearing claims are discounted, if necessary. All recognisable risks have been taken into
account through the setting up of specific loan loss provisions. Moreover, hidden credit
risks are covered by general loan loss provisions. To provide for general banking risks,
reserves have been built up pursuant to Section 340f HGB. All loan loss provisions and
reserves have been netted against the corresponding items on the assets side. In addi-
tion, a fund for general banking risks exists pursuant to Section 340g HGB.
Liabilities are generally reported at their repayment amount. Bonds issued at a dis-
count and similar liabilities are reported at their present values.
Premiums and discounts on claims and liabilities are included in deferred charges and
income and amortised on a pro rata basis.
The securities portfolios have been valued according to the stringent principle of lower
of cost or market by observing the requirement of reinstating original values. In some
cases, securities have been combined with their hedging instruments to form sepa-
rately documented valuation units.
Investments and shares in affiliated companies have been valued in accordance with
the rules applying to fixed assets at historical cost or, in the case of an anticipated per-
manent decrease in value, at the lower of cost or market as per the balance sheet date.