Annual report 2011 - VTB

VTB BankConsolidated Financial Statements and Independent Auditor’s ReportCONTENTSINDEPENDENT AUDITORS’ REPORTCONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Financial Position ......................................................................................................... 1Consolidated Income Statements ............................................................................................................................ 2Consolidated Statements of Comprehensive Income ............................................................................................... 3Consolidated Statements of Cash Flows.................................................................................................................. 4Consolidated Statements of Changes in Shareholders’ Equity .................................................................................. 6NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS1. Principal Activities ........................................................................................................................................ 72. Operating Environment of the Group............................................................................................................. 73. Basis of Preparation ..................................................................................................................................... 84. Changes in Accounting Policies .................................................................................................................... 85. Summary of Principal Accounting Policies................................................................................................... 126. Significant Accounting Estimates and Judgements ...................................................................................... 257. Cash and Short-Term Funds ...................................................................................................................... 268. Financial Assets at Fair Value Through Profit or Loss .................................................................................. 269. Financial Assets Pledged under Repurchase Agreements and Loaned Financial Assets .............................. 2810. Due from Other Banks................................................................................................................................ 2811. Loans and Advances to Customers ............................................................................................................ 2912. Financial Assets Available-for-Sale ............................................................................................................. 3013. Investments in Associates and Joint Ventures ............................................................................................. 3114. Investment Securities Held-to-Maturity ........................................................................................................ 3215. Premises and Equipment ........................................................................................................................... 3216. Investment Property ................................................................................................................................... 3317. Intangible Assets and Goodwill ................................................................................................................... 3418. Other Assets .............................................................................................................................................. 3619. Disposal Group Held for Sale ..................................................................................................................... 3720. Due to Other Banks.................................................................................................................................... 3721. Customer Deposits .................................................................................................................................... 3722. Other Borrowed Funds ............................................................................................................................... 3823. Debt Securities Issued ............................................................................................................................... 3924. Subordinated Debt ..................................................................................................................................... 4125. Other Liabilities .......................................................................................................................................... 4226. Share Capital ............................................................................................................................................. 4327. Interest Income and Expense ..................................................................................................................... 4328. Gains Less Losses Arising from Financial Instruments at Fair Value Through Profit or Loss ......................... 4429. Fee and Commission Income and Expense ................................................................................................ 4430. Income Arising from Non-Banking Activities and Other Operating Income .................................................... 4431. Staff Costs and Administrative Expenses .................................................................................................... 4532. Allowances for Impairment and Provisions .................................................................................................. 4533. Income Tax ................................................................................................................................................ 4734. Basic and Diluted Earnings per Share ......................................................................................................... 4935. Dividends .................................................................................................................................................. 4936. Contingencies, Commitments and Derivative Financial Instruments ............................................................. 5037. Analysis by Segment .................................................................................................................................. 5438. Financial Risk Management ....................................................................................................................... 5939. Fair Values of Financial Instruments ........................................................................................................... 8840. Related Party Transactions ........................................................................................................................ 9141. Consolidated Subsidiaries .......................................................................................................................... 9342. Business Combinations and Disposal of Subsidiaries .................................................................................. 9443. Capital Management and Capital Adequacy ................................................................................................ 9644. Subsequent Events .................................................................................................................................... 97