Land is not depreciated. B2 Investments for account of Common and preferred shares of stock owned Fair value model participants/Equity in the issued capital of corporations. At purchase security is capitalized at initial cost and instruments This item regards stock owned by the subsequently valued at fair value on individual company which represent: investment basis. The difference between cost and the fair value must less than 20% of the voting rights in issued capital be reported as an adjustment through income between 20% and 50% of voting rights, statement with no significant influence on management This account also relates to participation in investment institutions which invest in equity instruments B3 Investments for account of This asset account represents corporate or Fair model participants/Debt government securities that pay interest (fixed Security is recognized at fair value at reporting date. instruments or variable) and obligates the corporation or government agency to pay that interest at the The difference between the fair value and the end of specific time intervals, and to pay the (amortized) cost must be reported as an adjustment principal at maturity or the call date of the through the income statement. securities. Exception: This account also relates to participation in investment institutions which invest primarily The asset should be valued at amortised cost if both in debt instruments. of the following conditions are met: Business model to hold the asset in order to collect contractual cash flows, and
Land is not depreciated. B2 Investments for account of participants/Equity instruments Common and preferred shares of stock owned in the issued capital of corporations. This item regards stock owned by the company which represent: less than 20% of the voting rights in issued capital between 20% and 50% of voting rights, with no significant influence on management This account also relates to participation in investment institutions which invest in equity instruments Fair value model At purchase security is capitalized at initial cost and subsequently valued at fair value on individual investment basis. The difference between cost and the fair value must be reported as an adjustment through income statement B3 Investments for account of participants/Debt instruments This asset account represents corporate or government securities that pay interest (fixed or variable) and obligates the corporation or government agency to pay that interest at the end of specific time intervals, and to pay the principal at maturity or the call date of the securities. This account also relates to participation in investment institutions which invest primarily in debt instruments. Fair model Security is recognized at fair value at reporting date. The difference between the fair value and the (amortized) cost must be reported as an adjustment through the income statement. Exception: The asset should be valued at amortised cost if both of the following conditions are met: Business model to hold the asset in order to collect contractual cash flows, and
Pension%20fund%20comp%20&%20val%20guidelines%20final.docx