AnnuAl report 2007 - Raiffeisen Landesbank Tirol

31AppendixAnnual financial statementsAccounting andvaluation principlesGeneral principlesThe annual financial statements weredrawn up in line with the principlesof orderly accounting, as well as thegenerally accepted standard thata true and fair view of the assets,financial position and profitability ofthe company be provided. The principleof completeness was observedduring the preparation of the annualfinancial statements.The principle of individual valuationwas observed during the valuationof the various assets and debts andthe going concern principle was assumed.The due diligence principle was observedand only those profits realisedon the balance sheet date werereported. All recognisable risks andimpending losses were taken intoaccount.Currency translationThe currencies of the member statesin the Currency Union were reportedat a fixed translation rate.In accordance with § 58 Section 1 ofthe Austrian Banking Act, amountsin foreign currencies are translatedaccording to the ECB reference rates,except where published at meanexchange rates (RZB fixing).Currency forward transactions aretranslated at the forward rate on thebalance sheet date in accordancewith § 58 Section 2 of the AustrianBanking Act.SecuritiesFixed interest securities in the fixedassets were valued according to themoderated lower of cost or marketprinciple in accordance with § 56Section 2 of the Austrian Banking Act.Other securities in the fixed assetswere valued according to the strictlower of cost or market principle.Securities serving as cover stock fortrust funds were regarded as fixed assetsand valued according to the strictlower of cost or market method pursuantto § 2 Section 3 of the AustrianTrust Fund Security Act.Trading stock and current assets werevalued according to the strict lower ofcost or market method in accordancewith § 207 of the Austrian CommercialCode. Current asset securitiesemployed as cover for own issueswere valued according to the marketvalue. The securities derived fromown issues contained in the currentassets were reported at redemptionvalue.Loans, contingent liabilities andcredit risksIndividual value adjustments andprovisions were made for recognisablerisks in the case of borrowers.Additional charges are recognised asincome in the year of the loanallocation.InvestmentsInvestments were valued at historiccost of acquisition. Extraordinarydepreciation was undertaken wherea permanent loss of value seemedprobable as a consequence of the reducedequity and/or reduced incomederived from continuing losses.➜