Annual Report of Euram Bank Vienna 2017

Intangible and tangible assets
Fixed intangible and tangible assets are measured at cost
of acquisition or production, less scheduled depreciation.
Low-value assets are capitalized and written off in full
in the year of acquisition. Assets are depreciated on a
straight-line basis.
The following useful life is assumed for the purposes of
scheduled depreciation:
Company cars:
8 Years
Office equipment:
5 Years
Fixtures:
5 Years
Office machines:
5 Years
Software:
5 Years
Hardware:
5 Years
According to applicable tax regulations, a full year’s depreciation
for acquisitions in the first half of the year, and half
a year’s depreciation for acquisitions in the second half of
the year are effected.
Severance pay obligations
The provision for severance payments is determined according
to actuarial principles using an interest rate of 3.68%
(previous year: 4.01%) and on the basis of a calculatory
retirement age of 60 years for women and 65 years for men.
A staff turnover deduction is not determined. For the fiscal
year 2017, Euram Bank used the discount rate announced
by Deutsche Bundesbank (10-year average), with a residual
term of 15 years (3.68%). The interest rate selected and its
calculation shall continuously be applied from now on.
Other provisions
In the other provisions, in accordance with the principle of
prudence, all risks discernible as well as liabilities uncertain
in terms of amount and on the merits at the time of preparation
of the balance sheet are accounted for in amounts
that will be required according to reasonable commercial
judgement.
Liabilities
Liabilities are recognized at the repayment amount including
deferred interest.
Contingent liabilities
Contingent liabilities include financing guarantees granted
and secured by credit institutions, securities, mortgages or
in cash in the amount of EUR 1.4 million (EUR 0.1 million
as at 31/12/2016). In the fiscal year 2017, no unsecured
financing guarantee was granted (31/12/2016: none).
Credit risks
This position includes the amount of undrawn credit facilities
in the amount of EUR 5.4 million (EUR 3.8 million as
at 31/12/2016), as well as guarantees towards credit card
companies for credit lines granted to Euram Bank customers
in the amount of EUR 1.2 million (EUR 2.5 million as at
31/12/2016).
Euram Bank AG
37