Page 22 - OeEB-AnnualReport_2013

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OeEB Annual Report 2013
22
Financial statements
The annual financial statements of Oesterreichische
Entwicklungsbank AG (“OeEB”, “the bank”) were
prepared by the Executive Board of OeEB in accordan-
ce with the provisions of the Austrian Commercial
Code (UGB) and the bank-specific provisions of the
Austrian Banking Act (BWG).
The financial statements were drawn up in accordance
with accounting principles generally accepted in
Austria and with the guiding principle of presenting a
true and fair view of the bank’s financial position,
results of operations and cash flows. The financial
statements were prepared in accordance with the
principle of
completeness.
In measuring the individual assets and liabilities, the
principle of
individual measurement
was observed
and the
bank’s continuing operation
was assumed.
The principle of prudence was observed by reporting
only those profits realised at the balance sheet date.
All identifiable risks and impending losses accrued in
the 2013 financial year were recognised.
The financial year under review was the full calendar
year.
3.1.1 Basis of presentation and general principles applied
3.1 Accounting policies
3.1.2 Securities
Securities classified as current assets
are
measured using the conservative lower-of-cost-or-
market approach (i.e., measured at the lower of cost
or the quoted market price at the balance sheet date).
The bank does not hold securities for trading and
therefore does not maintain a trading book.
Securities classified as non-current assets
are
measured using the modified lower-of-cost-or-market
approach (i.e., measured at cost or, if permanently
impaired, at a lower quoted market price at the
balance sheet date).
In accordance with section 9 Export Guarantees Act
(the “Ausfuhrförderungsgesetz”), OeEB’s investment
financing transactions are covered by a federal
government guarantee from the Austrian Federal
Ministry of Finance in the amount of their cost. In
view of the full government guarantee, the expected
dividends and interest income for the year under these
transactions are recognised in the balance sheet item
“equity shares and other variable income securities”
on an accrual basis in the amount of the funding costs,
which represent the maximum amount guaranteed.
3.1.3 Interests in companies
Interests in companies
are measured at cost, less
any lasting material impairment losses.