NOTES to the annual accounts of European American Investment Bank Aktiengesellschaft (“EuramBank”) for the year ending 30 June 2015. The principle of itemised valuation was applied for the valuation of the assets and liabilities, on the assumption of a going concern. 34 35 The annual accounts for the year ending 30 June 2015 were prepared in accordance with the regulations of the Accounting Act, taking account of the special requirements of the Banking Act. The principle of prudence was observed by reporting only profits realised on the reporting date, and recognising all discernible risks and impending losses in the balance sheet. 1. General principles and information on accounting and valuation General principles The annual accounts for the year ending 30 June 2015 are prepared in compliance with generally accepted accounting principles, and with the general standard of conveying a true and fair view of the company’s assets, financial situation and results of operation. Under the provisions of section 9 of the Corporate Income Tax Act (KStG) relating to group taxation, a corporate group exists as at 30.06.2015 comprising Euram Holding AG as group parent and EuramBank as group member. The tax sharing agreements stipulate the stand-alone method. The bank is organized as a stock corporation. EuramBank is wholly owned by Euram Holding AG. The principle of completeness and accounting continuity was observed in preparing the annual accounts. With respect to accounting consistency, the option to account for deferred tax assets under section 198 (10) Austrian Business Code (UGB) was newly exercised in the financial year 2014/15, and a deferred tax asset was itemised for the first time. Foreign currency amounts Foreign currency amounts are translated at the middle rates set on the reporting date, in accordance with section 58 (1) Banking Act.