GB00_erste lage_E - Erste Group

2000 CONSOLIDATED FIANCIAL STATEMENTS ACCORDING TO IAS
VI. Information and explanations
pursuant to Section 245a Austrian Commercial Code
on accounting, valuation and consolidation methods applied
which deviate from Austrian Accounting Principles
The objectives of consolidated financial statements prepared according to IAS essentially differ
from those of consolidated financial statements drawn up according to Austrian Accounting Principles.
In particular, financial statements prepared according to IAS provide greater transparency
and more relevant information about the company. Figures prepared solely for tax purposes are
not permitted according to IAS. IAS assign priority to the investor’s information needs.
As IAS have different objectives, this results in different accounting principles in some cases
as well as extended reporting requirements in the Notes.
In the following cases, the differences between the objectives of IAS and Austrian accounting
provisions led to substantial differences (selected items only):
Scope of Consolidation Compared to the scope of consolidation according to Austrian Accounting
Principles, the scope of consolidation pursuant to IAS now also includes subsidiaries (including
those stated at equity) that are not engaged in the banking business, but had to be consolidated
due to the control concept.
Balance Sheet and Income Statement The Austrian Banking Act provides for a specific form of
the Balance Sheet and Income Statement for credit institutions. Such a requirement does not
exist according to IAS.
Loans and advances to credit institutions and customers These items are now reported as gross
amounts according to IAS, i.e. before deducting provisions. In addition, unlisted securities, which
were assigned to the loans and advances items pursuant to the Austrian Banking Act, are now
grouped with the respective securities portfolio (trading assets, investments available for sale or
financial investments) according to IAS.
Risk provisions for loans and advances Those risk provisions accounted for in the Balance Sheet
are reported according to IAS in line with standard international practice as a separate line item
under assets following loans and advances. This provides greater insight into the Company’s risk
provisioning policy. Allocations to and releases of risk provisions for the lending business are reported
at the end of the year as a separate item in the Income Statement following net interest
income.
124 Erste Bank 2000