Annual REPORT

NOTES TO THE FINANCIAL STATEMENTS (Continued)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
2 ACCOUNTING POLICIES (Continued)
Fair value hierarchy
This hierarchy requires the use of observable market data when available. The bank considers relevant and observable
market prices in its valuations where possible.
Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (Managing Director and CEO). Management then allocates resources to and assesses the performance of the operating
segments of the Group.
Segment result is segment revenue less segment expenses.
Segment revenue is the revenue that is directly attributable to a segment plus the relevant portion of the group’s revenue
that can be allocated to the segment on a reasonable basis.
Segment expenses are expenses resulting from the operating activities of a segment plus the relevant portion of an expense
that can be allocated to the segment on a reasonable basis.
Segment assets and liabilities comprise those operating assets and liabilities that are directly attributable to the segment or
can be allocated to the segment on a reasonable basis.
Capital expenditure represents the total cost incurred during the year to acquire segment assets (property, plant and equipment)
that are expected to be used during more than one year.
Comparatives
Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.
3 CRITICAL JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the group’s accounting policies, which are described in note 2, management is required to make judgements,
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered
to be relevant including expectations of future events that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised
in the year in which the estimate is revised if the revision affects only that period, or in the period of the revision and
future periods if the revision affects both current and future periods.
(i)
Critical judgements in applying the group’s accounting policies
The following are the critical judgements, apart from those involving estimations (see (ii) overleaf), that management
have made in the process of applying the group’s accounting policies and that have the most significant effect on the
amounts recognised in the financial statements.
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