Annual Report 2012 - The Cyprus Development Bank

Recommendations

Info

annual report 2012NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 December 201226. SHARE CAPITALTHE COMPANY2012 2011No.of shares €’ 000 No.of shares €’ 000Authorised:Ordinary shares of €1.71 each 100.000.000 171.000 100.000.000 171.000Issued and fully paid:Balance 1 January and 31 December 12.439.922 21.272 12.439.922 21.27227. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIESFair value represents the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willingparties in an arm’s length transaction. The fair value of the Group’s and of the Company’s financial instruments, which are not shownon the calculated fair value, are measured at amortized cost using the effective interest method less provision for impairment.The fair value of loans and advances to customers equals the amount shown in the balance sheet after deducting provisions forimpairment.Where possible, the Group calculates the fair value of financial assets using prices in active markets. A market is considered activeif prices are available in a stable and continuous basis where real transactions between market participants are frequently carriedout under normal commercial practice. The assets are valued at “bid price” and the liabilities at “ask price”.When the market for some financial instruments is not active, the Group calculates fair value using various methods of valuation.Such valuation methods may include the use of prices from recent transactions made at an arm’s length, the use of the currentfair value of other similar instruments, discounted cash flow methods and option pricing models. The chosen valuation method iscompatible with generally accepted economic methodologies used to determine the value of financial instruments. The data usedin the valuation techniques represent market expectations and measurements of the relationship between risk-return relating tothe financial instruments.The Group and the Company use the following hierarchy for determining and disclosing fair value:Level 1: investments valued using quoted prices in active markets.Level 2: investments valued using models for which all inputs which have a significant effect on fair value are market observable.Level 3: investments valued using models for which inputs which have a significant effect on fair value are not based onobservable market data.39
NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 December 201227. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued)The following table presents an analysis of financial instruments recorded at fair value by level of the fair value hierarchy.THE GROUPLevel 1 Level 2 Level 3 Total2012 €’000 €’000 €’000 €’000Financial assetsTrading derivativesForward exchange rate contracts - 19 - 19Investments available for sale 266 - 1.201 1.467266 19 1.201 1.486Financial liabilitiesTrading derivativesForward exchange rate contracts - 232 - 232- 232 - 2322011Financial assetsTrading derivativesForward exchange rate contracts - 1.073 - 1.073Investments available for sale 545 - 1.415 1.960545 1.073 1.415 3.033Financial liabilitiesTrading derivativesForward exchange rate contracts - 1.374 - 1.374- 1.374 - 1.374THE COMPANYLevel 1 Level 2 Level 3 Total2012 €’000 €’000 €’000 €’000Financial assetsTrading derivativesForward exchange rate contracts - 24 - 24Investments available for sale 159 - 1.129 1.288159 24 1.129 1.312Financial liabilitiesTrading derivativesForward exchange rate contracts - 232 - 232- 232 - 23240
Page 2 and 3: C O N T E N T SPageAdvisers 2Board
Page 4: Board of DirectorsRena Rouvitha Pan
Page 8 and 9: annual report 2012INDEPENDENT AUDIT
Page 10 and 11: annual report 2012INCOME STATEMENTF
Page 12 and 13: annual report 2012STATEMENT OF COMP
Page 14 and 15: annual report 2012BALANCE SHEETAs a
Page 16 and 17: annual report 2012CONSOLIDATED STAT
Page 18 and 19: annual report 2012CONSOLIDATED CASH
Page 20 and 21: annual report 2012NOTES TO THE FINA
Page 64: THE CYPRUS DEVELOPMENT BANK PUBLIC

Annual Report 2012 - The Cyprus Development Bank

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?