1987-139 - Laserfiche WebLink

Home Browse Search

n (he past rise f'iut Years The dooeren.e between the actual loan loss experience for the year and the provision for loan losses included in the Consolidated statement of income is reflected in the Consolidated start' ment of appropriations for contingencies. Loan fees are included in other income In the you in which they arise only when they rola, to expenses incurred or services pot• formed. Loan rescheduling fees and fees received in Item of interest are deferred and amortised to interest income over the term of the loan. (t) Direct financing [tun Leases are included in other loans in the Consolidated statement of ,sen and habdr ,its. Income. computed as the difference between total amounts receivable and the cost of the stated property, is deferred and reflected in income over the leant term to yield a constant rate of return On the investment in the lease (f) Acceptances The pocenual liability of the Bank under acceptances is feportedu a habihty in the Consolidated statement of assets and lubilr ties. The Bank I recourse against the cut• towner m the even of a call on my of three commitments a reported as an offseetmg asset of the same amount. (g) Land, buildings and equipment Land is reported at cost Buildings, equip- ment and leasehold improvement$ ere reported at coil Ins accumulated deprecu• tion or smortinuon Buildings and tqutpment act depreciated over their estimated useful lives using the reducing balance method and leasehold improvements Are amonised on the straight-line basis ihf Appropriations for contingencies Thee is a reserve created through transfers from retained earnings to provide for unforeseen future losses. This reserve ',in addition to the provisions that have already been deducted from the value of loans 2 Provision for income taxes rent,tto in the -11-c- , assets and liabilities, and includes the differ trice between actual ban lose experience and the provision for loan loun reflected in the Consolidated statement of tncome. The maumvm amount of the transfer (torn retained earnings which may be deductible for sex purposes is prescribed by regulations of the Minister of Finance. III Financial futures and fisturr fur agreements Financial futures and future rte, Were. men.. ace used to protect the Bank against the risk of adverse interest tart fluctuutons and may also be part of trading activities. The principal smounet ourstandmg under financial futures and future rase agreements represent future commitments and are not included in the Consolidated statement of users and babditin Gains and losses on any of these instruments which are destgnattd is hedges of user and liabilities Are deferred and recognised in income over the remaining lift of the hedged item. Where dhest instruments ate used in trading activities, any guns or losses are tecogniud in income as they accrue. (If Cron ciarrency and inseeeat tate swaps The Bank enters into rrou currency and interest rate swaps to either tun fee income u an intermediary befweencoun,tparges or to manage its own funding r"tremeno and foreign currency exposure. The fen for acting u an Intermediary act mcludtd in other income as earned: for norrin,rmedr airy swaps the usoctued income or expense is accrued o•er the life of the swap As an adjustment to interest income or expense As appropriate (k) Provision for income tarts The Bank follows she tax 00carton method of providing for income taxes. The cumuli live differences between cu calculated on such basis and tuts currently payable are essentially timing differences and result In deferred income uses Net income before provision lot income taxes Domestic International Total The provision for income taxes is included in the following financial statements. Consolidated statement of Income Domestic International Total Consolidated retained earnings Transfer to appropriations for contingencies Unrealized net foreign currency translation gains Share issue expenses Net provision for income taxes Current income taxes Deferred income taxes Capital cost allowance and depreciation Other A-16 1986 1985 1984 $376.259 1377.386 1321.248 222.329 238.698 196.591 1600.388 $616.084 $117.9W min� $ 96.500 $ 99.600 $ 80.000 101.500 100.900 82.000 198.000 200.500 162.000 (57.575) 154.159) (49."4) (182) ( 5.709) t 1.206) (4.554) (28) 42.873) g® $® 1l® $136.719 $137.792 $135.052 (),2531 (2.442) t16.553) 2.163 1.254 (10.352) 6li1,6"1® ®ate $®