Annual Report: - Gorenjska banka

2.13. Accounting for leases
2.13.1. Where the Bank is the lessee
All leases where the Bank acts as lessee are operating. Payments made based on operating leases
are included in the income statement proportionately to the contract duration and are disclosed
under other operating expenses. When an operating lease is terminated before the lease period
has expired, any payment required to be made to the lessor by way of penalty is recognized as an
expense in the period in which termination takes place.
2.13.2. Where the Bank is the lessor
All leases where the Bank acts as lessor are operating. Payments received based on operating leases
are included in the income statement proportionately to the contract duration and are disclosed
under other operating income.
2.14. Property and equipment
All property and equipment is initially recorded at cost. The Bank assesses each year whether there
are indications that assets may be impaired. If any such indication exists, the Bank estimates the
recoverable amount. Recoverable amount is the higher of the asset's fair value less costs to sell and
value in use. An asset's carrying amount is written down immediately to its recoverable amount if the
asset's carrying amount is greater than its estimated recoverable amount. In 2010 and 2011 wasn't
identified needs for a reduction in value.
Items of property and equipment are recognised as an asset if it is probable that future economic
benefits associated with the item will flow to the Bank and the cost of the item can be measured
reliably. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each
reported date.
Depreciation is calculated on a straight-line basis at rates designed to write off the cost or valuation
of buildings and equipment over their estimated useful lives, as follows:
Land is not depreciated. Assets in the course of transfer or construction are not depreciated until
they are brought into use.
Gains and losses on disposal of property and equipment are determined by reference to their
carrying amount and are taken into account in determining operating profit. Maintenance and
repairs are charged to the income statement during the financial period in which they are incurred.
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Gorenjska banka, d. d., Kranj
Annual Report 2011
Financial Report
2011 2010
Buildings 33 years 33 years
Computers 2 years 2 years
Equipment 5 years 5 years
Motor vehicles 5 years 5 years