Download (2.2 MB) - Volksbank AG

(15) Trading liabilities
NOTES / ACCOUNTING AND VALUATION PRINCIPLES
Trading liabilities include the negative fair values arising out of derivative financial instruments and are shown
under other liabilities. They are entered at their fair value.
(16) Provisions for personnel expenses
Provisions for pensions, severance payments and jubilee bonus obligations are calculated annually by an independent
actuary according to the projected unit credit method, in accordance with IAS 19. The Bank used the “AVÖ
1999-P Rechnungsgrundlagen für die Pensionsversicherung Pagler & Pagler” (Principles of calculating pension
insurance) in the version intended for employees as the biometric base for its calculations. The most significant
parameters are a rate of interest of 4.75% (4.95% in the previous year) for calculation purposes, a rate of increase
in earnings and pensions of 2.0%, a career trend of 1.5%, a fluctuation rate of 4.5% for those with contracts
entitling them to severance pay, a fluctuation rate of 9.0% for those with contracts not entitling them to severance
pay as well as the unchanged assumed age for pension entitlement for women of 60 and 65 for men applying
the ASVG transitional rules under the 2003 Ancillary Budget Act. As employees’ pension entitlements were
transferred to a pension fund in previous years, from now on this provision will include the rights of employees
who were already retired at the time of the transfer as well as claims by active employees for disability and widows’
pensions. Severance provisions are formed for legal and contractual claims. A provision in cash for jubilee
bonuses has been formed for cash paid to employees to reward certain anniversaries of long-term service. Other
provisions are formed in the amount of projected use in each case.
(17) Current and deferred taxes
Taxes on income are accounted for and calculated in accordance with IAS 12. Current income tax assets and liabilities
are stated according to local tax rates. Tax assets are shown under other assets, and tax liabilities under
other liabilities or provisions. The liability concept is used for the calculation of deferred taxes, and all temporary
differences in amount are taken into consideration. Under this concept, the values of assets and liabilities in the
IFRS Balance Sheet are compared with the values that are applicable to taxation of the consolidated company in
question. Differences between these values lead to temporary differences in value, for which deferred taxation
items must be formed on the assets or liabilities side – irrespective of the time of their release. Deferred tax assets
and deferred tax liabilities are then offset, if the claims exist for each company against the same tax authority.
Deferred tax assets or unused tax losses carried forward are recorded in the Balance Sheet if they will probably be
used in relation to future profits.
81