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BOB_2017_SMALL

NOTES TO THE FINANCIAL

NOTES TO THE FINANCIAL STATEMENTS 18. Loans and advances to customers (continued) Loans and advances renegotiated Restructuring activities include extended payment arrangements, approved external management plans, modification and deferral of payments. Following restructuring, a perviously overdue customer account is reset to a substandard status and managed together with other similar accounts. Restructuring policies and practices are based on indicators or criteria which, in the jusdgement of the credit committee indicate that payment will most likely continue. These policies are kept under continuous review. Repossessed collateral As at 31 December 2017 the bank did not hold possession of any repossed collateral held as security. 19. Investment securities 2017 2016 20 investment securities kshs '000 kshs '000 Quoted equity investments: At start of year 1,005 1,888 Fair value (loss)/gain 220 (883) at end of the year 1,225 1,005 unquoted equity investments: At start and end of year 19,391 19,391 corporate bonds: At start of year 184,546 184,546 Redemption (111,354) - Interest income for the year 1,511 - Interest income received - - Fair value (loss)/gain (926) (75,710) 73,777 108,836 94,393 129,232 The fair values of the quoted equity investments and corporate bonds are categorised under Level 1 based on the information set out in the accounting policy. 21 tax Payable / refundable Balance at beginning of the year (416,566) 28,085 Current tax for the year recognised in profit or loss (1,146,648) (935,500) Balance at end of the year 145,121 416,566 (1,418,093) (490,849) The non-current asset held for sale relates to the Tom Mboya property. This property was diposed during the year. 50

NOTES TO THE FINANCIAL STATEMENTS ANNUAL REPORT AND FINANCIAL STATMENTS 2017 22 intangible assets reconciliation of intangible assets - 2017 Opening Additions Disposals Amortisation Total balance Computer software 4,877 1,329 - (1,894) 4,312 4,877 1,329 0 -1,894 4,312 reconciliation of intangible assets - 2016 Opening Additions Disposals Amortisation Total balance Computer software 2,937 3,918 - (1,978) 4,877 2,937 3,918 - (1,978) 4,877 2017 2016 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation Amortisation Valuation Amortisation Computer software 17,537 (13,225) 4,312 16,208 (11,331) 4,877 total 17,537 -13,225 4,312 16,208 -11,331 4,877 In the opinion of management there is no impairment in the value of intangible assets. Amortisation costs are included in non interest expenses in the profit or loss. 23 investment property reconciliation of intangible assets - 2017 Opening Additions Disposals Depreciation Total balance Investment property 22,284 - (22,284) - - 22,284 - (22,284) - - reconciliation of intangible assets - 2016 Opening Additions Disposals Depreciation Total balance Investment property 22,903 - - (619) 22,284 22,903 - - (619) 22,284 24 investment property 2017 2016 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation Investment property 0 - 0 30,950 (8,666) 22,284 total 0 0 0 30,950 -8,666 22,284 51