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Foreign currency amounts<br />
Foreign currency amounts are translated at the middle rates set on the reporting date, in<br />
accordance with section 58 (1) BWG.<br />
Financial assets<br />
Investments are valued at cost <strong>of</strong> acquisition. Lower values are recognized in the case <strong>of</strong> material,<br />
sustained impairments.<br />
Securities held as fixed assets are measured at the lower <strong>of</strong> fair value and cost <strong>of</strong> acquisition on the<br />
balance sheet date. Unscheduled write-downs to a fair value that is lower on the reporting date are<br />
performed where the impairments are likely to be permanent.<br />
Write-ups on fixed assets are performed if the reasons for the unscheduled write-down have lapsed.<br />
Current assets<br />
Securities held as current assets were reported at cost <strong>of</strong> acquisition less value adjustments for<br />
discernible individual risks or possibly a lower share price, market value, or market value derived<br />
from a similar financial instrument, on the reporting date.<br />
The company does not keep a trading book.<br />
Receivables and other assets are reported at their nominal value less value adjustments for<br />
identifiable individual risks. Moreover, to take account <strong>of</strong> credit risks within loans and advances to<br />
customers, a general impairment provision was made for performing portfolios.<br />
The recoverability <strong>of</strong> loans and advances to customers is estimated based on the impairment<br />
indicators and the collateral provided. In doing so, the fair values less haircuts are used. Estimates<br />
are based on prudent assessments. The calculation <strong>of</strong> the general impairment provision for<br />
non-defaulted customers is based on a valuation model that also takes into account, in the course<br />
<strong>of</strong> an internal credit rating process, the probabilities <strong>of</strong> default determined by external rating<br />
agencies, apart from customer exposure and collateral values. To the extent that statistically<br />
identifiable data from similar situations are available, the company has taken them into account<br />
when preparing the estimates; for instance, collateral haircuts and historical default rates published<br />
by Creditreform (Verband der Vereine Creditreform e.V.).<br />
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