63 The Bank reviews intangible assets for impairment at every reporting date. This assessment is based on indications suggesting that an impairment loss may have occurred. Where evidence of impairment exists, the Bank calculates a recoverable amount for each individual asset. The value of an asset is impaired when its carrying amount exceeds its recoverable amount. If the asset is impaired, the book value is written down to the recoverable value and the impairment is charged to the item "Value adjustments on participating interests, and depreciation and amortisation of property, plant and equipment, and intangible assets". Provisions Legal and de facto obligations are assessed on a regular basis. If an outflow of resources is likely and can be reliably estimated, a corresponding provision is created. For the default risks of off-balance sheet transactions under the "Contingent liabilities" and "Irrevocable commitments" items, for which no provision has been booked, when an obligor can no longer meet its obligations, provisions for expected losses are made. The methods applied to identify the risks and determine the needs for value adjustments are described in Note 4.3.6 "Methods used to identify risks of default and to determine any need for value adjustments". Existing provisions are reassessed at each balance sheet date. Based on this reassessment, the provisions are increased, left unchanged or released. Provisions are released via the income statement if they are no longer needed on business grounds and are recorded under the following items: • provisions for taxes: "Taxes"; • pension provisions: "Personnel expenses"; • other provisions: "Changes to provisions and other value adjustments and losses". Reserves for general banking risks Reserves for general banking risks are set aside as a preventive measure with the aim of covering underlying risks relating to the Bank's overall activity. These reserves are considered as forming part of shareholders' equity under the Swiss capital adequacy ordinance (CAO). The creation and release of reserves are recognised under "Changes in reserves for general banking risks" in the income statement. The reserves for general banking risks are subject to tax. Taxes Current income and capital taxes for the corresponding period are calculated in accordance with applicable tax rules. Direct taxes which are still due at the end of the financial year are recorded as liabilities in the balance sheet under "Accrued expenses and deferred income". Pension benefit obligations The majority of the staff of the Bank are covered by the CA Indosuez (Switzerland) SA Pension Fund. In addition, pension liabilities and the assets used to hedge these liabilities are held by a legally independent foundation. Contributions which have been adjusted to the period are recorded under "Personnel expenses" in the income statement. Furthermore, the foundation manages its assets through the Bank; hence the related positions are recorded in the latter's balance sheet. The Bank assesses whether there is an economic benefit or obligation arising from its pension fund at the reporting date. The assessment is based on the contracts and financial statements of the pension fund established in Switzerland under Swiss GAAP FER 26 and other calculations that present a true and fair view of its financial situation as well as the actual over- or underfunding. To determine whether the pension plan represents a benefit or a financial liability, the Bank calls on an expert in industry pension plans. Off-balance sheet transactions Off-balance sheet items are stated at their nominal value. A provision is made for foreseeable risks and recorded under liabilities in the balance sheet. Figures for the previous financial year For the purpose of comparison, the Bank made reclassifications in the sub-categories of contingent liabilities and commitment credits, in order to comply with the presentation adopted in 2022. 4.2.2 Change to accounting and valuation principles No change in accounting principles has been made. 4.2.3. Recording of business transactions All transactions are booked at the trade date and measured at that date for the purpose of determining profit or loss. The following transactions, recognised according to the settlement date principle, which are not executed at the balance sheet date, are included in irrevocable commitments: • Repurchase agreements (repos/reverse repos) • Fixed-term loans • Loans repaid on notice Spot transactions, recognised in accordance with the settlement date principle, which are not executed at the balance sheet date, are included in forward transactions. 4.2.4. Treatment of past-due interest Interest outstanding is not recognised as interest income. Interest accrued and unpaid for more than 90 days is considered interest outstanding. Current account credit is considered past due when the credit limit has been exceeded for more than 90 days. From this point in time, no accrued interest is recorded in "Interest and discount income" until there is no more past-due interest over 90 days. Interest outstanding is not retroactively subject to
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