Download - Volksbank AG

THE BANK FOR CORPORATES
Notes
66
State Commissioner.
ALEXANDER GANCZ KURT BAYER
State Commissioner Deputy State Commissioner
Director Federal Ministry of Head of Department
Finance Economic Policy and Integration
Federal Ministry of Finance
Board of Management.
ALFRED REITER
CEO and Chairman of the Board of Management (to 31 December 2001)
WILFRIED STADLER
Member of the Board of Management (to 31 December 2001)
CEO and Chairman of the Board of Management (from 1 January 2002)
KLAUS GUGGLBERGER
Member of the Board of Management (from 1 January 2002)
(67) EVENTS AFTER THE BALANCE SHEET DATE. In January 2002, both Investkredit and Kommunalkredit, respectively, issued
the largest volume of bonds ever, increasing the volume of issues to more than EUR 1 bn. The consolidated enterprise VBV drei
sold the Heiligenstädter Lände complex.
(68) THE TRANSITION TO IAS. The primary objective of IAS financial statements is to provide investors with information regarding
an enterprise’s financial position and performance. On the other hand, the main emphasis in financial statements pursuant to the
Austrian Commercial Code is on the protection of creditors. These differing goals result in differences in accounting methods and
also in reporting.
Risk provisions. Risk provisions are shown openly on the assets side as a reduction, according to usual international practice.
Trading assets and liabilities. Trading portfolio items which are contained in several different balance sheet items pursuant to the
Austrian Commercial Code are summarized under IAS rules in Trading assets or Trading liabilities. These items also contain the fair
values of derivative financial instruments.
Financial investments. The item of financial investments covers equity investments, securities serving as financial assets as well as
securities in the liquidity reserve. Securities in current assets which are valued under the Austrian Commercial Code at the lower of
cost and market value are stated under IAS at fair value.
Derivative transactions. By application of IAS 39, derivatives are treated differently according to their category. Derivatives in the
trading portfolio are attributed to trading assets or liabilities. They are accounted for at their fair value, which is a deviation from the
practice under the Austrian Commercial Code. Derivatives in the banking book are treated, depending on their purpose, as fair value
hedges, cash flow hedges or macrohedges, and considerable differences arise vis-à-vis the Austrian Commercial Code through
accounting at fair value.
Reserves for personnel purposes. Reserves for pensions and similar commitments are based according to the Austrian Commercial
Code on the statistical accumulation procedure and under the IAS on the dynamic defined benefit obligations procedure. Future
developments of salaries and pensions are taken into account in the calculation. The discount factor is oriented according to the
capital market.
Deferred taxes. According to the Austrian Commercial Code, deferred tax liabilities that arise through differences between the
result under commercial law and the tax result are entered as liabilities, while there is an option for the entry of deferred assets on the
assets side. Pursuant to IAS 12, deferred taxes are formed according to temporary balance sheet differences. Deferred tax assets or
liabilities therefore arise differently under the IAS balance sheet approach and the Austrian tax assessment system – irrespective of
the time of their release.