Annual Report 2012 - National Savings Bank

245THE RESULTS OF A CHALLENGING YEARNOTES TO THE FINANCIAL STATEMENTS45. Explanation of Transition to New Sri Lanka Accounting Standards (SLFRS and LKAS)As Stated in Accounting policies the Bank’s first Financial Statements prepared in accordance with new Sri Lanka Accounting Standardsprefixed both SLFRS (corresponding to IFRS) and LKAS (corresponding to IAS), promulgated by the Institute of Chartered Accountants of SriLanka (ICASL).The Accounting Policies set out in Note 2.1 to 2.3.3 have been applied in preparing the Financial Statements for the year ended December31, 2012 the comparative information presented in these Financial Statements for the year ended December 31, 2011 and in the preparationof an opening Statement of Financial Position as at January 1, 2011 (the Bank’s date of transition).In preparing its opening new SLFRS/LKAS Statement of Financial Position, the Bank has adjusted amounts reported previously in FinancialStatements prepared in accordance with previous SLAS. An explanation of how the transition from previous SLASs has affected the Bank’sFinancial Position and financial performance is set out in the following tables and notes that accompany the tables.45.1. Reconciliation of Equity - BankNotes SLAS Reclassifi-cationsJanuary 01, 2011 December 31, 2011Remeasu-rementsSLFRS SLAS Reclassifi-cationsRemeasu-rementsRs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000AssetsCash and cash equivalents 1,354,733 - - 1,354,733 1,398,413 - - 1,398,413Balances with central bank - - - - - - - -Government securities held for Trading 11,608,618 (11,608,618) - - 6,302,255 (6,302,255) - -Placements with banks - 3,935,992 - 3,935,992 - 5,280,528 - 5,280,528Government securities bought underResale Agreement 6,981,347 (6,981,347) - - 3,794,296 (3,794,296) - -Derivative financial instruments 1 - 47,130 47,130 47,130 - 34,458 34,458 34,458Dealing Securities 5,466,402 (5,466,402) - - 7,776,419 (7,776,419) -Other financial assets held-for-trading 2 - 15,886,036 227,212 16,113,248 - 11,359,901 229,624 11,589,525Financial assets designated at fair valuethrough profit or loss - - - - - - - -Loans and receivables to banks - 4,325,700 - 4,325,700 - 21,222,723 - 21,222,723Placement with and Loans to Banks andFinancial Institutions 12,373,050 (12,373,050) - - 33,222,070 (33,222,070) - -Loans and Advances 81,477,833 (81,477,833) - - 93,060,080 (93,060,080) - -Loans and receivables to othercustomers 3 - 108,379,863 (502,381) 107,877,482 - 117,083,056 (865,712) 116,217,344Rupee Loans 12,168,000 (12,168,000) - - 9,168,000 (9,168,000) - -Financial investments - Available-for-sale 4 - 2,831,402 448,980 3,280,382 - 4,190,021 (905,922) 3,284,099Treasury Bills held to Maturity 48,647,272 (48,647,272) - - 55,580,567 (55,580,567) - -Treasury Bonds held to Maturity 202,690,744 (202,690,744) - - 233,905,120 (233,905,120) - -Financial investments - Held to maturity 5 - 260,401,592 (797,775) 259,603,817 298,621,786 (486,967) 298,134,819Investment Securities 1,677,266 (1,677,266) - - 1,791,657 (1,791,657) - -Investments in subsidiaries 150,000 - - 150,000 150,000 - - 150,000Interest Receivable 12,670,054 (12,670,054) - - 13,157,554 (13,157,554) - -Investments in associates and jointventures - - - - - - - -Property, plant and equipment 4,612,632 193,178 - 4,805,810 4,935,037 189,290 - 5,124,327SLFRSNATIONAL SAVINGS BANK . ANNUAL REPORT 2012