Annual Financial Statements 2011 of Bank Austria

Consolidated Financial Statements in accordance with IFRSs
A – Accounting policies (CoNTINuED)
A.5 – Significant accounting policies
Business combinations
When a subsidiary is acquired, the fair values of its identifiable assets, including identifiable intangible assets, and liabilities are offset against the
cost of acquisition. The difference between the cost of acquisition and the fair value of net assets is recognised in the statement of financial position
as goodwill if such difference cannot be attributed to intangible assets, e.g. a customer base. Pursuant to IFRS 3 and IAS 36, goodwill is not amortised.
Goodwill arising on business combinations after 1 April 2004 is stated in the currency of the acquired company and translated at the closing
rate. Goodwill is tested for impairment at least once a year.
As at the date of acquisition, equity of foreign subsidiaries which prepare their financial statements in foreign currency is translated into euros. Gains
and losses arising on the foreign currency translation of equity of foreign subsidiaries are recorded directly in equity as at the dates of the subsequent
statements of financial position.
Goodwill arising on acquisitions of subsidiaries and other equity interests before 1 January 1995 has been offset against retained earnings.
When a subsidiary is acquired, the calculation of non-controlling interests is based on the fair values of assets and liabilities.
Foreign currency translation
The consolidated financial statements are prepared in euro. Foreign currency transactions are translated into euro on initial recognition by applying
the exchange rate at the date of the transaction.
Foreign currency translation is performed in accordance with IAS 21. Monetary assets and liabilities denominated in currencies other than the euro
are translated into euros at market exchange rates prevailing at the end of the reporting period. Forward foreign exchange transactions not yet settled
are translated at the forward rate prevailing at the end of the reporting period.
For the purpose of foreign currency translation of the financial statements of foreign subsidiaries which are prepared in a currency other than the
euro, the middle exchange rate prevailing at the end of the reporting period has been applied to items in the statement of financial position and the
annual average exchange rate has been applied to income statement items.
Exchange rates used for foreign currency translation
aVerage
(Exchange rate in currency/€)
2011 2010 chaNge iN %
eNd Of
repOrtiNg
periOd aVerage
eNd Of
repOrtiNg
periOd aVerage
eNd Of
repOrtiNg
periOd
Azerbaijani manat AZN 1.0992 1.0175 1.0643 1.0674 3.27% –4.67%
Bosnian marka BAM 1.9558 1.9558 1.9558 1.9558 0.00% 0.00%
Bulgarian lev BGN 1.9558 1.9558 1.9558 1.9558 0.00% 0.00%
Swiss franc CHF 1.2326 1.2156 1.3803 1.2504 –10.70% –2.78%
Czech crown CZK 24.5898 25.7870 25.2840 25.0610 –2.75% 2.90%
Croatian kuna HRK 7.4390 7.5370 7.2891 7.3830 2.06% 2.09%
Hungarian forint HUF 279.3730 314.5800 275.4806 277.9500 1.41% 13.18%
Kyrgyzstan som KGS 64.1775 60.0164 60.8800 62.9508 5.42% –4.66%
Kazakh tenge KZT 204.1040 191.8850 195.3600 196.9640 4.48% –2.58%
Lithuanian litas LTL 3.4528 3.4528 3.4528 3.4528 0.00% 0.00%
Latvian lat LVL 0.7063 0.6995 0.7087 0.7094 –0.34% –1.40%
Polish zloty PLN 4.1206 4.4580 3.9947 3.9750 3.15% 12.15%
Romanian leu RON 4.2391 4.3233 4.2122 4.2620 0.64% 1.44%
Serbian dinar RSD 101.9660 106.1770 103.0434 106.0450 –1.05% 0.12%
Russian rouble RUB 40.8846 41.7650 40.2630 40.8200 1.54% 2.32%
Turkish lira TRY 2.3378 2.4432 1.9965 2.0694 17.10% 18.06%
Ukrainian hryvnia UAH 11.1067 10.3692 10.5386 10.6254 5.39% –2.41%
US dollar USD 1.3920 1.2939 1.3257 1.3362 5.00% –3.17%
Bank Austria · Annual Financial Statements 2011
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