Annual Report 2011 - Hong Kong Monetary Authority

Accounting and valuation principles
The financial statements of the parent company have been
drawn up in accordance with the accounting principles of
the Edmond de Rothschild Group, with the exception of
the following items:
“Holdings”
This item comprises of interests in associated establishments
of either a long-term or infras truc tural nature (regardless of
the percentage stake). These holdings are stated, at most,
at their acquisition value.
“Fixed assets”
This item includes Bank premises, other buildings, furniture,
machines and equipment, as well as intangible assets.
Fixed assets are evaluated at their acquisition cost, less the
relevant depreciation for each fixed asset category.
Risk management
The principles adopted by the Group regarding control of
market, credit, interest rate and country risks also apply to
the parent company.
114 2011 ANNUAL REPORT - BANQUE PRIVÉE EDMOND DE ROTHSCHILD SA