Français/English - Arab Banking Corporation, ALGERIA

Financial Statements 2012
APPENDIX NO. 5 - APPENDICES TO THE FINANCIAL STATEMENTS
1. Accounting Methods and Rules
The accounts are held and the financial statements of ABC Algeria
are drawn up in accordance with the standards set forth by the
law 07-11 relating to the Financial Accounting System and the
texts taken for its application.
It is also governed by the specific sectoral standards particularly
the Bank of Algeria regulation 09-04 relating to bank accounting
and accounting rules applicable to banks and financial institutions,
the Bank of Algeria regulation 09-05 relating to the drawing up
and publication of the financial statements of banks and financial
institutions, the Bank of Algeria regulation 09-08 relating to the
rules of evaluating and accounting financial instruments by the
banks and financial institutions and the Bank of Algeria regulation
94-18 on the accounting of transactions in foreign currencies.
The transactions are accounted in accordance with the principle
of separating financial years: the interest and related commission
are recorded in the profit and loss account pro rata temporis; the
other commission as well as other revenue are recorded at the
time of their collection or payment.
The financing commitments are registered off-balance sheet as
they are entered into and are transferred to the balance sheet as
the funds are released for the nominal value.
The study and management commission is taken into account in
its entirety in the result at the end of the first release of funds.
Income from pre-discounted loans is taken into account, on
the agreed maturity date, in a debt account attached to an
adjustment account and are added to the bottom line prorata
temporis on each accounting statement.
Income from post-discounted loans is taken into account in the
bottom line as accrued. Interest related to loans categorized as
short-term debts, within the meaning of the order of the Bank
of Algeria 74-94 as amended and completed, is added to the
bottom line as accrued. However, the interest accrued or due and
not yet collected related to loans and debts categorized as high
risk debts (category 3) or compromised debts (category 4) within
the meaning of the Bank of Algeria order 74-94 are recorded
under assets in the item «reserved premiums».
This interest is taken into account on the bottom line when
actually collected.
The bank’s assets are evaluated at the historic cost apart from
debts to customers which are evaluated in accordance with the
aforementioned regulation 09-08. Allowances for categorized
debts are calculated in accordance with the order 74-94 on the
setting down of prudential management rules for banks and
financial institutions.
Fixed assets are evaluated, on the date they become part of
assets, at the purchase price equal to the purchase price plus fees
and incidentals required for rendering the asset ready for use.
Depreciation of fixed assets is done through amortisation.
Transactions in foreign currencies are recorded in the accounts
using the evaluation rules and methods defined by the regulation
94-18 on the accounting of transactions in foreign currencies.
These transactions are recorded in different accounts opened in
each of the currencies used.
The account balances are converted into dinars, on the date of
each account statement, on the basis of the average bid/offer
rate of the Bank of Algeria for each currency.
The «foreign exchange positions» and «foreign exchange position
counter-value» accounts are opened in each of the currencies
for the recording of currency/dinar transactions. The difference
resulting from the foreign exchange position and foreign
exchange position counter-value balances is reported in the profit
and loss account.
2. Information of the balance sheet
Note 1 : Cash, Central Bank, Public Treasury, Postal Checks Center
2012 2011
Cash 571 312 648 535
Assets with Central Bank 4 488 627 3 907 171
Assets with the Postal Checks Center 4 563 51 964
Assets with with Public Treasury 116 172 364 291
Cash, Central Bank, Public Treasury, Postal Checks Center 5 180 674 4 971 961
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