Annual Financial Statements 2011 of Bank Austria

Consolidated Financial Statements in accordance with IFRSs
A – Accounting policies (CoNTINuED)
A.1 – Information on the company
UniCredit Bank Austria AG, Schottengasse 6–8, A-1010 Vienna, Austria, is a universal bank conducting banking business within the meaning of Section
1 (1) of the Austrian Banking Act. It is registered under no. FN 150714p in the Austrian Register of Firms at the Commercial Court of Vienna. The
bank continues to operate in the market under the “Bank Austria” brand name. The geographical focus of the bank’s operations is on Austria and CEE.
A.2 – Basis for the preparation of the financial statements
The consolidated financial statements of Bank Austria for the year ended 31 December 2011 have been prepared in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the EU. In addition, the disclosure rules which are specified in the Accounting Manual of
UniCredit S.p.A., the ultimate parent company, and are required to be applied throughout the Group, were used as a basis for the preparation of the
consolidated financial statements. The comparative figures for the previous year are also based on these standards. The consolidated financial statements
are prepared in euro. Unless indicated otherwise, all figures are in millions of euros (€).
A.3 – Consolidation principles
The consolidated financial statements are based on the financial statements of UniCredit Bank Austria AG and its subsidiaries as at 31 December
2011. All direct or indirect subsidiaries that are material are consolidated in the consolidated financial statements as from the date on which the
Bank Austria Group obtains control of such subsidiaries. Consolidation ends when the parent company loses control of a subsidiary.
The financial statements of the subsidiaries are prepared using uniform accounting policies for the same reporting period as the financial statements
of the parent company. All intragroup balances, transactions, unrealised gains and losses on intragroup transactions and dividends are eliminated in
full.
Investments in jointly controlled companies are accounted for under the proportionate consolidation method if they are material for the
Bank Austria Group.
Material investments in associated companies, i.e., companies which are neither indirectly nor directly controlled by the Bank Austria Group but in
which a significant influence can be exercised, are accounted for using the equity method.
The bank sponsors the formation of special purpose entities (SPEs) primarily for the purpose of facilitating investments by the bank’s customers, asset
securitisation transactions, structured debt issuance, and to accomplish certain narrow and well-defined objectives. The bank consolidates those SPEs
if the substance of its relationship with them indicates that it has control over them.
Shares in all other companies are classified as investments available for sale and measured at their fair values, to the extent that fair value is reliably
measurable.
A.4 – Application of amended and new IASs and IFRSs
Effects arising from changes in accounting methods
The following comments refer to financial reporting standards which are of relevance in the Bank Austria Group and have been applied in preparing the
2011 consolidated financial statements.
A.4.1 – IFRSs which are required to be applied
IAS 24 Related Party Disclosures
The revised IAS 24 has been applied for the first time since 1 January 2011. The amendments to IAS 24 simplify the disclosure obligations for entities
which are controlled, jointly controlled or significantly influenced by a government. The revised IAS 24 also clarifies the definition of a related party.
The application had no significant effects on the consolidated financial statements.
Bank Austria · Annual Financial Statements 2011
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