Page 23 - OeEB-AnnualReport_2013

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OeEB Annual Report 2013
23
Financial statements
3.1.4 Intangible assets
Intangible assets are recognised in the balance sheet
only if they have been acquired by purchase. They are
measured at cost less amortisation and impairment.
Intangible assets generated internally, and low-value
assets with an individual acquisition cost of less than
EUR 400, are expensed immediately.
Amortisation
is provided on a straight-line basis over
a useful life of 5 years, i.e., at a rate of 20% per year.
Impairment losses
existing at the balance sheet date
are recognised if the impairment is expected to be
lasting.
3.1.5 Loans and advances and other assets
Loans and advances
to banks and customers, and
other assets,
are recognised at face amounts. For
identifiable credit risks in respect of borrowers,
impairment losses are individually assessed.
The loans and advances to banks shown under “other
loans and advances” (i.e., those not repayable on
demand), and the loans and advances to customers,
are covered by a federal guarantee under section 9
Export Guarantees Act in the amount of their cost. In
view of the guarantee, the expected interest income is
recognised on an accrual basis and recorded in the
respective balance sheet item.
Deposits from banks and other financial liabilities are
recognised at repayable amounts.
3.1.6 Deposits from banks and other financial liabilities
3.1.7 Provisions
Provisions for termination benefits
are determined
on the basis of generally accepted actuarial principles,
using the projected unit credit method in accordance
with International Accounting Standard 19. The
calculations assume a discount rate of 3.25% and an
age at retirement of 64 years for men and 59 years for
women, and are based on the computation tables
“AVÖ 2008 P” by Pagler & Pagler.
The item
“other provisions”
represents all risks, and
all liabilities of uncertain amount or nature, identifiable
at the time of preparation of the financial statements,
measured as dictated by prudent business judgment.