Disclosure Of Material Accounting Policy Information [Text Block]

Raiffeisen Bank International AG - Filing #1059624

Concept	2022-01-01 to 2022-12-31
Disclosure of material accounting policy information [text block]	—
Description of accounting policy for borrowings [text block]	Financial liabilities are generally recognized according to IFRS 9 at (amortized) cost (financial liabilities – amortized cost) applying the effective interest method unless they are measured at fair value. This includes financial liabilities that are held for trading (financial liabilities – held for trading) and designated as FVTPL (financial liabilities – designated fair value through profit/loss). Changes in the fair value of liabilities designated at fair value through profit or loss which are caused by changes in RBI’s own default risk are to be shown in other comprehensive income.
Description of accounting policy for business combinations and goodwill [text block]	On 1 April 2022, the closing for the acquisition of the 100 per cent stake in Crédit Agricole Srbija AD (CASRS), Novi Sad, and CA Leasing Srbija d.o.o. by Raiffeisen banka a.d., Belgrade, took place. Crédit Agricole Srbija AD, Novi Sad, was included in the consolidated financial statements for the first time as of 1 April.
Description of accounting policy for cash flows [text block]	The statement of cash flows shows the structure and changes in cash and cash equivalents during the financial year and is broken down into three sections:
Description of accounting policy for collateral [text block]	RBI employs a range of policies to mitigate credit risk, the most common of which is the acceptance of collateral for loans and advances provided. A valuation of collateral is performed during the credit approval process. This is then reviewed periodically using various validation processes. The main types of collateral which are accepted in RBI are residential and commercial real estate collateral, financial collateral, guarantees and movable goods. Long-term financing is generally secured, and revolving credit facilities are generally unsecured. Debt securities are mainly unsecured. Derivatives can be secured by cash or master netting agreements. Collateral from leasing business primarily consist of the value of the leased assets themselves. Items shown in cash and cash equivalents are considered to have negligible credit risk. Collateral is taken into account uniformly on the basis of Group directives. The Group directives regarding obtaining collateral were not significantly changed during the reporting period; however, they are updated on a yearly basis.
Description of accounting policy for contingent liabilities and contingent assets [text block]
Description of accounting policy for depreciation expense [text block]	Land and buildings as well as office furniture and equipment reported under tangible fixed assets are measured at cost of acquisition or conversion less depreciation. Depreciation is recorded under the item general administrative expenses. The straight-line method is used for depreciation and is based on the following useful life figures:
Description of accounting policy for derecognition of financial instruments [text block]
Description of accounting policy for derivative financial instruments [text block]
Description of accounting policy for determining components of cash and cash equivalents [text block]	Cash and cash equivalents comprise the item on the statement of financial position cash, cash balances at central banks and other demand deposits.
Description of accounting policy for dividends [text block]	Dividends from equities, subsidiaries not fully consolidated, strategic investments and associates not valued at equity are recognized under dividend income. Dividends are recognized through profit/loss if RBI’s legal entitlement to payment has materialized.
Description of accounting policy for earnings per share [text block]	As no conversion rights or options were outstanding, no dilution of earnings per share occurred. The dividend on additional tier 1 capital is calculated; the effective payment is based on the decision of the Management Board at the respective payment date.
Description of accounting policy for employee benefits [text block]
Description of accounting policy for expenses [text block]	RBI applies the five-step revenue recognition model in IFRS 15 - Revenues from contracts with customers - for the recognition of commission income when the contractual performance obligation to the customer has been satisfied. In cases where contractual arrangements are part of a financial instrument under IFRS 9 the instruments are initially recognized at fair value before applying IFRS 15. This is sometimes the case with loan commitments for which, depending on utilization, a portion of the fee must be disclosed as part of the effective interest rate method in net interest income in accordance with IFRS 9 or in net fee and commission income if not utilized in accordance with IFRS 15.
Description of accounting policy for fair value measurement [text block]
Description of accounting policy for finance costs [text block]	Interest and interest-like income mainly includes interest income on financial assets such as loans, fixed-interest securities, as well as interest and interest-like income from the trading portfolio. Interest expenses and interest-like expenses mainly include interest paid on deposits, debt securities issued and subordinated capital. Interest income and interest expenses are accrued in the reporting period. Negative interest from asset items is shown in interest expenses; negative interest from liability items is shown in interest income.
Description of accounting policy for financial assets [text block]
Description of accounting policy for financial guarantees [text block]
Description of accounting policy for financial instruments [text block]
Description of accounting policy for foreign currency translation [text block]
Description of accounting policy for functional currency [text block]	The consolidated financial statements of RBI were prepared in euro which is the functional currency of RBI AG. The functional currency is the currency of the principal economic environment in which the company operates. Each entity within the Group determines its own functional currency taking all factors listed in IAS 21 into account.
Description of accounting policy for goodwill [text block]
Description of accounting policy for hedging [text block]
Description of accounting policy for impairment of financial assets [text block]
Description of accounting policy for impairment of non-financial assets [text block]
Description of accounting policy for leases [text block]
Description of accounting policy for non-current assets or disposal groups classified as held for sale [text block]	Non-current assets and disposal groups are classified as held for sale when the related carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is only considered met if the sale is highly probable and the asset (or disposal groups) is immediately available for sale and management has adopted a plan to sell the asset (or disposal group). Moreover, the sale transaction must be capable of being recognized as a completed sale within twelve months of the classification.
Description of accounting policy for intangible assets and goodwill [text block]
Description of accounting policy for intangible assets other than goodwill [text block]
Description of accounting policy for investment in associates [text block]
Description of accounting policy for investment property [text block]
Description of accounting policy for offsetting of financial instruments [text block]	Where the borrower and lender are the same, offsetting of loans and liabilities with matching maturities and currencies occurs if a legal right, by contract or otherwise, exists and offsetting is in line with the actually expected course of the business.
Description of accounting policy for property, plant and equipment [text block]
Description of accounting policy for provisions [text block]	Provisions are recognized when the Group has a present obligation from a past event, where it is likely that it will be obliged to settle, and a reliable estimate of the amount is possible. The level of provisions is the best possible estimate of expected outflow of economic benefits at the reporting date while taking into account the risks and uncertainties underlying the commitment to fulfill the obligation. If a provision is formed based on cash flows estimated to fulfill an obligation, the cash flows must be discounted if the interest effect is material.
Description of accounting policy for reclassification of financial instruments [text block]
Description of accounting policy for recognising in profit or loss difference between fair value at initial recognition and transaction price [text block]	According to IFRS 9, all financial assets, financial liabilities and derivative financial instruments are to be recognized in the statement of financial position. A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. On initial recognition, financial instruments are to be measured at fair value, which generally corresponds to the transaction price at the time of acquisition or issue. If the Group unit determines that the fair value on initial recognition differs from the transaction price, but this fair value measurement is not evidenced by a valuation technique that uses only data from observable markets, then the carrying amount of the financial asset or financial liability on initial recognition is adjusted to defer the difference between the fair value measurement and the transaction price. The deferred difference is subsequently recognized as a gain or loss only to the extent that it arises from change in a factor (including time) that market participants would consider in setting the price. According to IFRS 13, the fair value is defined as the exit price. For subsequent measurement, financial instruments are recognized in the statement of financial position according to the respective measurement category pursuant to IFRS 9, either at (amortized) cost or at fair value.
Description of accounting policy for repurchase and reverse repurchase agreements [text block]
Description of accounting policy for research and development expense [text block]
Description of accounting policy for segment reporting [text block]	Segment classification
Description of accounting policy for subsidiaries [text block]
Description of accounting policy for taxes other than income tax [text block]	Non-income related taxes are recognized in other administrative expenses when the Group unit identifies the obligating event for the recognition of a liability in accordance with the relevant legislation. In practice this means either the liability is recognized progressively when the obligating event occurs over a period or the obligation is triggered on reaching a minimum threshold. The full liability is recognized when this minimum threshold is reached. In addition, RBI shows the tax expenses not attributed to business activity (from corporate restructurings) in the other result. Expenses for governmental measures and compulsory contributions are shown separately in the item of the same name. This includes the bank levies, the resolution fund, deposit insurance fees and other compulsory contributions (e. g. state borrowers’ support fund).
Description of accounting policy for trading income and expense [text block]	Net trading income comprises the trading margins resulting from the foreign exchange business, results due to foreign exchange revaluations and all realized and unrealized gains and losses from financial assets and liabilities at fair value.
Description of accounting policy for transactions with non-controlling interests [text block]	Non-controlling interests are shown in the consolidated statement of financial position as part of equity, but separately from RBI AG's equity. The profit attributable to non-controlling interests is shown separately in the consolidated income statement.
Description of accounting policy for transactions with related parties [text block]
Description of accounting policy for treasury shares [text block]