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    Techcombank

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    18 views89 pages

    Techcombank - 31 Dec 15 - IfRS

    Uploaded by

    Anonymous 45z6m4eE7p
    Techcombank

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    Vietnam Technological and Commercial Joint Stock Bank Cconsoliated fancil laterents unt Intrnatonal Finacial Reporing Standards 31 December 2015 Vietnam Technological and Commercial Joint Stock Bank CONTENTS ‘Genera infomation Report of he Board of Mansgement Independent audors' report Consolidated statement of prof orloss Consolidate statement of ther comprehensive came ‘Consoated statement of francial psiton ‘Consolated eatoment of cnanges in eaty ‘Consolidate eatoment of cash ows testo the consolidated franca ststomens ry fo sas Vietnam Technological and Commercial Joint Stock Bank GENERAL INFORMATION THE BANK Vietnam Technological and Commecil voit Stock Bank (the Bank’ isa commercial joint stock bank oyteres and Incorporate inthe Soca Repub of Vitra “Tne Bonk was incorporated in accordance wih Susinass Lconse No, OO4NH-GP issued by the ‘Governor ofthe Site Bank of Veinam (the S8V7) on 6 August 1963 ard Bushes Repetto CGrtieate No, 055597 Issued by be Hane Deparrent of Planning and Investment on 7 Seotembar ‘203: Tha operating duration was extenged 099 Years wr’ Desison No. 240120-NNS ese by the SBVon 8 Octobe 1607, “Te principal atts ofthe Bank are mobising an reeling shor, medium and long rm dopost fds ro na inva, lncng ona Se, medium and longterm Dass Up the ature and abit of he Boni’ capialYesowces, conducting sattemert ard cash serves sh ‘er banking eeneees ao aproved by the SBV, eopdeting esiventsInsubsicaras, assocates, Jpinvvertues and cher companes, imvesiment & bonds ané deaing ip foregn exchange In Sovordance wen pplcatle equations [BOARD OF DIRECTORS. Members ofthe Board of Decors of the Bank during the year ended 31 December 2018 and a8 at the ale of ese consolaata inane statoments areas follows Nome Position Me Ho Hung Anh Ccraeran ‘Mr Nguyen Tieu Guang Vie Cnazman ‘a Nguyen Cana San ice Ciera tie De Tuan an Vice Gatman I. Nguyen Dang Quang Member IM Cee Boon uae Meme: He Nguyen Doan Hung Independent Nembor ‘BOARD OF SUPERVISION Members ofthe Board of Syparison of he Bank during he year ended 31 December 2015 and 2s tthe cate of tse contobated hancement areas fons Name Position Mi. Hoang Huy Tung Head of Board of Supenision cum Standing member Hr Mag Ree'Soc Oee Remauck Hannes. Meriter Mg Nguyen Thu Hien ‘Standing member Mo. Bur Tn Hong Mat emer Reeoeieb Vietnam Technological and Commercial Joint Stock Bank [GENERAL INFORMATION (ootnued) BOARD OF MANAGEMENT Members ofthe oad of Management ofthe Bank dung the year enced 31 Decenber 2015 and ts tthe cat of thoes coneolatosfinaclal stslemant areas flbws! name Position ‘ir. Nguyen Le Quoc Ah Deputy Chet Executive Officer in charge (rom 1 March 2016) Head of Strategy and Corporate Development {om may 2018) .Yulashev Murat Mashraphovich Chit ExoetiveOer {kom 18 Api 2015 il 1 March 2016) Me Do Tuan An Deputy Chef Bxeruve Offcor Me Pham Quang Thang Dept Chet Executive Oe’ cum Head of Complance, Operational Risk Management an Legal te Nguyen Bang Thanh Hood of Businase Banking fe Nguyen Can Vier ‘ead of Wholesale Bening Me Vikesh ie ‘Group Chie Financial Ofer I Phan Than S00 Head of Treasury and Frarcil Markets Mr Phung Quang He Head of Sales and Datebton Is, Pham Vu Dan Head ot Hn Resource Dison (tom 8 Janay 2015) tie Nguyen Qvoe Nam Head of Human Resource son (2 January 2015) Mr Le Be Durg Head of Rsk Management (fom 1 Septamibe 2018) Hs. eT sh Phong ‘cng Hood f Personal Financial Serves Nr Sagyndys Kassanov Head of Perna! Franca Serveae (16 Septonbes 2016) Hs. Nguyen Tian Anh ‘Acting Head of Markstng and Branding (fom 1 Novernber 2018) Mo. KunsutuKapbassova Hod of Marketing and Branding (831 Occber 2018) Me. Chester Gore Hood fT and Operations LEGAL REPRESENTATIVE “The toga eprsentatv of re Bank dsing te year ended 91 December 2018 and asa the dat ‘heee consoicatod nail statements se Ho Hung Anh he Obarman, ie. Nguyen Le Quo Anh is authored by Mr. Ho Hung Ano sign off reprtldocuments raat rnanagng the operation of Fe Bank ufich comprise ihe accompanying consoldated francis Tatonems fr the financial year endod 21 Oocamber 2018 ih aczordance wih Decen No 15121U0-0T dated 26 Fedary 20°6. AuoITOR ‘The aust of the Bank i Est & Young Viena Limited Vietnam Technological and Commercial Joint Stock Bank REPORT OF THE BOARD OF MANAGEMENT ‘The Boars of Management of Vietnam Tecaoleglcl nd Conmercial Jen Stock Bank (the Bank’) {Tpleoad to present ke report and the conesidated financial statements of the Bank and its subsidiaries forthe year ended 31 December 2015 MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS “The Board of Management ofthe Qank and is subsidies Is responsible forthe consolidated financial statements. of esc ancl year when gve a tue and fa view ofthe consoldted financial postion ofthe Bank ard ts subeda‘es and a the consadatg esuts of ie operations, the consldtne ehenges a equty ana ther consoliated eas flaws for the Jaa. preparing those conecldates fnanell stalement, the Boar of Management requied > select stable accounting soci an then appy them consistent mote judgments and estimate hat re roatonsle and prudent > ate ynater applicable acccuntng slandards have beon folowod, subject to any materia Sepa dcoted and explaned i he conscieted franca siaterens, and > prepare the consolidated francial statements on the going concern basis unless FRappropiate presume tat the Ban and fs subsidies wil continue ts buses ‘The Soard of Managements respensible or ensuring that proper accounting ecard are kept whi Aiectoge, wih easonable accuracy at any tno, te consisted fancil poston ofthe Bank and ie aubsiianes and enturng that the scoouiing records comply win the applied. accountng Sistem Ils also responsible for esteguarding the asets othe Bank anes subsiiaios and hence {or taking reasonable ste for he prevention and dtecon of aud and ater Pregusrtes, “The Board of Management confmed tal it has complied wih the above quirements in preparing ‘ne sccorparyingconectdated hancal statment, STATEMENT BY THE BOARD OF MANAGEMENT ‘The Board of Management does hereby site that in ts opinion, the accompanying consocstd fine statements ve a rue ard far ve oft consokgated tracil poston of tie Bank and Sp subsclares ao at ST December 2018, and Ine consolated franc performance and cash ‘tows forthe yaar then ends in ssoteance wah the nierationalFirancial Reporing Standards Le ard of me Boat Manan (ons ‘ar Nguyen Le Quce Aah Deputy Chet Exeesve Officer in charge Hero ie 14 may 2016 EY spyebenwewreais, eset Buldngagaget Sapte on eee: Eanrenizet 23S INDEPENDENT AUDITORS’ REPORT To: The Shareholders of ‘Vietnam Tochnologieal and Commercial Joint Stock Bank ‘We nave austed the consldatd nancial statements of Vitnam Teemoageal nd Commer Join Westar (tse Bonk) and is suosciaries os set out on pages 6 10 47, whch comprise the Se Ba, Cotemant of anes! poston ae st 31 Decerber 2015, the consalated statement of cereeleiee, te consoled alement of othe’ comprehensive income, the consldtea statement of Prot gly andthe concosled stem of cashflows for he year hen ended, and a summary ‘Stagnicant scobunting pele andthe notes thereto Managements responsibilty “The Board of Management ofthe Bank is responsible forthe preparation and ar proseiatan of the Tre Board of Manseaments of the Bank and fe subsidanos In accordance wah Intemational Fareed orang Steno, and fo such itera contl as the Board of Wanegement determines cree te enale ne propraton of coneoudaes franc sialements thal are fre fom mtr Instat, het’ due fraud or eer. ‘Aucitors responsibilty ‘our resporiity fs to exeress an opinion on these consolidated fnncial sates based on out cur a condted our aust accordance wth ntrnational Standards on Aung, Those sandarss aa ec comply wth eficalrequerents ana pen end pf the aut oblai reasonable ‘AUG So abou wneer the cnedtated rane statements ere ee from material mssztrent ‘an aud involves pertorning procedures to obtain aut evidence about the amounts and decosires in Ferre Eidaes fnencal srements, Te procedures selected depend an the autre judomenk Bearer casesaron of te oka of materal mietatement ofthe consoléated feacil statements etude sd oe anor mans those i areessmerts, he aucirs consist interna coo reine ste Sank ans subsdlaries preparaton and far presentation of te consobdted tail cae orca a esi aut procedure that re appropiate nthe ceumstroes, But note he ‘tater noresbng an sprion on the ellciveness of he Bank and fa avers real conroh Fee re nclades ovahaing the appropriateness of accounting polis used andthe ‘Sassnablness of accouning estimates mace of We Board of Management ofthe Banke wel 25 ‘Satuaung te over prsentaton ofthe corsaldated teal statement. We Deve tat he aut evidence we have obtained is sufcient and appropiate to provide basis for bur ava opinion. pinion In ou opinion, the contoated franca stalaments present fly, all material respects, the "eeéideted shana poston ofthe Bark anc fs subsidiaries a8 af 37 December 2019, ana Wel care ested fnancal periomance ang tnet cash fows for me year then ended in accordance wh \iemational naneal Reporing Standarés EY Building a better ‘working worid other mater “The consoiats nancial statements ofthe Bank ands subsdares forte year ended 31 Decembor Zod wee susted by aroler audtor who explased an unmodted opinon on hose consolidated alererts on 18 May 2015. ‘aay 2018 be svh dows Vietnam Technological and Commercial Joint Stock Bank ‘CONSOLIDATED STATEMENT OF PROFIT OR LOSS forthe year ended 81 December 20:5 2018 zor owes __VNO milan ___ NO iin Interest nd sir nome ‘ssaes 19,000,172 4 Ines and smi expenses (eies707) (488.887, Nat itera nd sir inom . 905750 5.020.188 : Fee and commission income 1991.18 1.665408 i Fee and commsson excenses (peau) (eazsea i Netto and commission noone 7 1700000 1.122585, : Netadrg come a 200,070, 21988, A (ther esata ieome ° 95452 .,6n01 Impatment losses on fancil ssets 40 __ (4800408) @.215887 ‘Net operating income a0 9.00 Persone! excenses 1 oteasry—_(nss2.107 ‘Operating ease expenses fassaa) — “Yeasoat) Bepreclaton and amriation expenses x23 Gress) an 87) (tre operating expenses 2 apataa) _asreet?) Total operating expenses ($000,203) 976.012 Proft before tax 7 “043.288 Current ncome ax expense 8 soe) 24.08) ‘eferes ax ncometxpense) W 7.700) _s8,04 Net pest forthe year sistoata 773.098 Earnings per share Base eargs per share (VO) 8 a8 or Dit eamage per share (VN) 8 sor mm Prepares by: ye ‘Te GuTw RianhVen eT We Ngwyen Te oe Ah Chet Accountant Drecter of counting Deputy Cnet Brecutive Ofer Fanci Polcy snatax, ohare France ad Paring Bion Hono, viewam hoy 2018 Vietnam Technological and Commercial Joint Stock Bank (CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME forthe yoarendes 31 December 2015 2018 ote Notes __YNO milan __VND mation NET PROFIT FOR THE YEAR 1310210 Traps OTHER COMPREHENSIVE INCOME ‘Avoiabi forsale financial ares Netchange a valve 46421) 218.460 [Net smaun transferred o prof or ss (eo100) (623,200) lrnpaement os vanstered i pot or oss "40,308 “53.000, ‘Tecan other comprokensive income “ 91857 4017 ‘thor comprehensive income forthe year, net of Income tox 308.47 1997 ‘TOTAL COMPREHENSIVE INCOME FOR THE YEAR 539,199 Prepared by ‘Approved by We Ba Tinta Ven We ThaiPatnh Me Nguyen Le Guoe Anh ‘Chet Accourtant eestor of Aocouning, Deputy Chie Executve Offer Francil Policy andTax in ehage Finance and Manning Dison ano, Vietnam ta iay 2018, Vietnam Technological and Commercial Joint Stock Bank CONSOLIDATED STATEMENT OF FINANCIAL POSITION fat 31 December 2015 21 Docomber 2018 31 December 2014 jes OND ton" WN miton assers Castand cash eqivatets 8 rare 19080705 Sue om oer eredt natsons ° Tease Woowrat Fencdlnvacirents etary ® Beenie "Bors Servave nari snes ® ‘e518 Sreoss Cans ad arenes casters 2 taderane = sagsezzr trvosertoecree B ‘ssoocons £70008 ‘rosery and exupment 2 festaes 2114862 (Good ad Se mong esets S ore ‘e.005 Covet cre tax asa as se2 ote Defored mene tc omss i sso 425390 ter set a saan 9203 TOTAL ASSETS ——tsrstaae 176,008,008 uasumes Dye ose edt ettons 25 pozragos 1904378 Barwa rani toutes ie ‘asses feo epost tom caomers 2 143.8 mt aan russ nce z 7 909 eras Vase papers toes 2 saris adapare ‘ovens FA asst stored mene ec faies ie saat ter aban 2 sansa TOTAL LiABILIES tras _180, 60.638 SHARENOLDERS' EQUITY Shae captal as aqregrs Sars Seams onares wt cae ies otones earings 1 saat 6308 ‘Stary rconves aa Aiasae 4551000 Other reserves 313 __sosez0t_9.392,673 ‘TOTAL SHAREHOLDERS’ EQUITY “assess 1.604665 TOTAL UABLITES AND SRARENOLDERS' EQUITY gis144s8 __rreans.s03 Proved: oproveaby We prraeanven Weert urn ht cron! Dat ef csoutig, FancalPoy snd Tox, rehae France end Puning Ovson ano Vatnam amy 2018 WA FE ow area Taree wanes estes ara va cuss) ouvene's omar oR eT ORT ean GN, ron OT Seeecalimao seuscsrutmes SSiumepouery som beau. ae as 102 seque2ed be papa se0K tp Jo 00g 1 popue sek oi} js1varosNoo unos MI S30NWHD ‘Yue YOOIS JUIOP |BIDIELULON pUe JedIGojOUYoS| WELIE!A, o shoe fen van TUE ofa BuNue pue eves Ne pue Kayo oe "uneoy J 020 wsnnoa2y io. ‘omar awa —— ‘aN a an ‘aN Seuss! ow sannnertnimers ssuuice pews saiexs Anse, jeide> siels 10 sequa2eg be pepue 20k 90 04 (oni Vieinam Technological and Commercial Joint Stock Bank ‘CONSOLIDATED STATEMENT OF CASH FLOWS forthe yoar ended $1 December 2015 Notes ‘CASH FLOWS FROM OPERATING ACTIVITIES Profit forthe year Aajustvents for Depreciation ard amortisation expenses 22,28 Netimpatmer ose on mvostrent ocurtios ‘io Netimpaimentiess on due fon aher creat instutons 10 Net mpaimmertioss on lean and advances customers 10 Net mpaimmertioss on her ancal assets 0 Netintrest arama income 5 Net gain tom vadng secures hedfovrading 8 Net gain on sle of aaiable‘or-salesecurtes Dvigenasnceme for canta conibuon ® Inoome tx expanse Equty-sotd shae-based payment transactions " Nt cashflows used in operating activites betore ‘changes in operating essets and iabitios ‘Change in tracing astets ‘Change n dervabve nanclarsos ‘Change nde fem ahr ert nstutons ‘Change noans and advances to customers {Change in nvestmeris, ‘Change in othr assets CChaige In ervatve thancil abit (Change in aueto oe ere retutens (Grange in doposts fom customers (Change in antustes funds (Change f det secures issued (Change ater bios (Changes in operating assets and abies Interest receives Dldendsreceved from cpitalcontibuton ® Inet pais. Ireome tax paid 2 Not cash (used inyirom operating setiitios 1 2016 uo miion satoate 76697 ‘53,145 (9.770) 218.900 aire (201.306) “10.8t8) 98.501 24a? (4,760,424) (201.788) (240's70) 2a7a008 (e947 035) “047,863 ‘ree 94 95 062.468 ‘viosa.t30 21787 1386479 353.053 (9,613,800) 2803518 10815 1638579) (1.288) (6204858) 2014 no maiton Tre0%8 2es.c07 520 978 ‘9770 1az7o0t 1'396,110 (6.28105) (43.380) (625.285) (4.999) 295,182 16472 (4956270) (1.083340) (29.46) (2.754158) 0.175.203), (21008875) (980,122) “asiast 30as23 st3eree 2009 207 468 352.855) (1434880) 111029,180 4.83 oardoan (217 53 or1s27 Vietnam Technological and Commercial Joint Stock Bank CONSOLIDATED STATEMENT OF CASH FLOWS continues) forthe year ended $1 December 2015 205 2014 Notes vo milion __ VND maton ‘CASH FLOWS FROM INVESTING ACTIVITIES -Acguistons of propery and equipment 2 (701) (96,800) Proceeds fom asposas of property and equiprent ara8 "e958 ‘Acqutons of intangible assole 7 34) 55,78) Net eash used in investing activities (5.46) (183.620 ‘Not cash increase decreased) during the year (6.201005) 447.688, ‘cash and cash equivalents at beginning of year 16 17.522,008 ‘cash and cash equivalents at end of year se __12777 900 __ 10,069,705 Prepare by ‘Approved by: ly ‘G Bu Takhar Van We Thala Chef Accountan! Det of Aczounting, Fhancil Posey and Tax, menage France ana Banning Oviion ano, Vetnan 14 Nay 2016 2 Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, ifr he year ended 31 December 2015 4. CORPORATE INFORMATION \Vieinam Technologies! and Commercial Joint Stock Bank (the Bank) is commercial jit ‘Sock ban registred ana noopoated inthe Sosist Reguthe of Vina. Establishment and Operations “The Bank was Incoporated in acorsance with Business License No. OO4OINH-CP issued by tne Governor othe Sale Bank of Vietom en 08 August 1008 and Buerese Regisation Certiioste No. OSS607 ‘ssuee by the Haro! Department of Panning and Investment on 7 September 1993 The operating custon was exended t 99 yeare unde the Dacian No, $39000-NH5 ssved by the Stole Ban of Vistar on & October 1997 ‘The principal ates ofthe Bank are mobilising and receiving shor, medium and ong- {arm depast nds fam organisations and nid, ening on shat medum and ong tem bess up Io the nature and sity of the Bank's cap resources, conducting Setloment and cash servaee and te" banking servces as approved by tho SB, onducing investments in subsiaies, associate, jontvenures and other companies, ‘rwestment In bons and deaing in foregn exchange m accordance wih appicable regulations, Network “The Bank's Hood Otc i locate st 191 Ba Tie, Hol Ba Trung Distt, Hanol. As a 31, December 2095 the Bank has one (1) Head Off, two (2) representative ofces, hee hundred an bei (312) Fanactonofces nation and fur (4) states Subsidiaries ‘As at 1 December 2015, the Bank has four (4) subsites 28 follows bythe No. Name ‘Busines License No. ‘Bank 4 Techeom Seourie —— SBUBCKGP, dated 18 00% Company Limies Sapemibe 2008 rated my the ‘Stas Seoutes Commission 2 Wiemam Technological Of040085 19 ated 18 June 2008 Debt end 00% Snacarrercal one gariedoy he fare Deparment asset Stocktank-Asest™ {Panning aedinvestnent— Manapemant Manaperes Company Utes 3 TecrcomCspisl 401UBCK:GP deed21 October Fund 100% Maragerert Company 2008 granted bythe Sie Pranagement Umted Seeutten Conrission 4 Technclogleaans __3AOVGP-NHNN by ha Sate Bark Fiance ~ 100% Comarca Fnance iVieiamested 29 Oecamtie’” Crest CCerperyimied 2008, Employees ‘As at 21 December 2016, the Sank and ts subsisares have 7518 omployess (31 December 2044 7,418 employees). 8 Vietnam Technological and Commercial Joint Stock Bank a4 22 ay 9 TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) nd forthe yoar ended 31 Decamber 2015 [ACCOUNTING PERIOD AND CURRENCY IN ACCOUNTING ‘Accounting period “The annual accountng pariod of te Bank and is substi tars on 1 January and ends on 31 December Currency in accounting Ccurerey uses in accounting of the Bank as subs Is Vetiam dong VND) which Isle the presentotoncureny ACCOUNTING POLICIES ‘Basi for presentation and use of iancil statements “The consoSated franca tatemens ofthe Gan and ts subeldlares have been prepared ona hstoeat cos bass, except for avalable‘r-eale investments, cerivaves tnancal insrumorts, other Anancin aecete and franesal lollies hadortading whion have a ‘een measured a fa value Compliance “The conttdated financial staersents of the Bank and ks subsidies have been proparoé In" sccoréance win infematonal Fiala Reporting Stancwas. 2s suued by he Intemational Accounting Stands Boar Prosentation of anciastetoments ‘The Bank and its subsidies present the consolidate ettament of francl psiton in ‘order of igual. An anaes regarding recovery or setlement wihin 12 monte ater be Fepottng date (cen) and mre than 12 months afer he reporing dat (non cuent) Is presertadn Note 38 Finacial agtete ang tnancal lables se ofset and the net amount reported in the ‘consoldstad statement of francis postion ony when hee as legaly enforceable Nght ‘fet the recognised amauns and there ean ntanton to sete on nt bass, trakse ‘ha assets and eet th labitysimutaneoush. Income and expenses ere no fet nthe Congoldsted statement of prof or lose unless roquied of perntted by any accounting ‘Sancare of mtepelaion, and as spectcaly iscased inthe accountng pois of the Bane ands subeitariee " Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (conbaved) ‘be and forthe year ended 31 December 2018 4 32 [ACCOUNTING POLICIES (continued) ‘Basis of presentation and use of financial statements (continued) Basis of consoldation “The consolidated franca statements compriza the fnarlalsataments ofthe Bank an ts ‘Sttsidariea The. tnancisl satemants ofthe subsigaries are prepared for the same Faportng year asthe Bank, sing consent acourtng rosie. [A inreigioupbelarces, Income and expenses and urveaized gone or losses esuting from inr-group ransacts to limited nal ‘Svtsldaes are uly consotdsted fram the dale on wich contol is anstrted to the Bank Cont! acioved where the Bank has the power fo govern the anc and Operating pales ofan ony so a 0 can benefits rom satis, ‘Significant accounting judgements, estimates and assumptions “The preparation of he Bark and is subsidies! consodatedfancislsitomonts requires the daar of Management of the Bark fo mak judgements, estimates and assumptions tat fifect the reported amount of revenuos, oxpanses sects and Haiies and the fccompanying cecoeuoe. as well as the dlscbsure of cortngent labites. Uncertainty fbout ness sesumptone and estates coulé rest in oleames tat requ a mail ‘djustent to the carying amount of apaeta or labs afacted nthe fie poroas Estimates and assumptions “Tne key assumgtone cnceming the fue and other Key Soules ef estimation uncersity {Abe roporing dal, that have a significant rk of causing @ material agusiment fo the ‘Garyng amounts of sets ard lables within the nex anal year, are dabotbed below. ‘Ine’ Bane based fs astumptona and estmaiee on param@lers avalsbe when the ‘consoldatee tancil statements were prepare. Existing coimstances and exsiptons Sbout ture velopment, however, may change dve 19 market changes or ckcurstanes beyond the contol of he Bank. Such changes are refecnd Inthe assumotons when they Going concern ‘The Bank apd ts subsiiariee’ management has made an assessment of he Bank and ts ‘tela abity to continue es a going concom and is satsfad tat the Cart ands Euteiciaies have the resources to cone. Susiness for tho foreseable ‘uo Furhermore, management ft aware of any males ncetania that may cast ‘Sinfcantdcubt upon the Bank and ts subsites’ bly to contnue as a going concen. ‘Thorlo. tne coneodated fnancll stements contave to be prepared on be ing concern bass Fair value of fnanclal instruments ‘Where the for values of nancial aot an Snancia! abies recorded on the consolidated $aloment of hana postion cannot be dered for: active markets, they are eerie lang 8 tarety of vaiatonfeconques that inelude the Use cf mathemati! Modols The Input te these models ae caved om cbserabi market cata where possible, but where Cbservatle market data are not avaltle, judgment i equred io establish fa vas, The Judgments euse consceratons of Iquy and model inputs such as voatiy fr longer Gated dorivaives and decourt fates, prepayment rats and default rte assumptions fr ‘esol backed tac. 6 Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) Seat and forthe yoor enced 31 December 2015 [ACCOUNTING POLICIES (coninued) “Significant azeounting judgments and estimates (contnves) [Allowance for impairment esses on leans and advances fo customers “The Benk and ts subsiiriancevaw thei inévalysgnicant loans and advances at Goen slatenent-stsnarcia- positon dale to aosass whether an impaiment oss shoul Be fecorded In the earsoldsiee satoment of poft or loss, In paula, managements Judgement erequred in he esbmeton of he around timing of future cash tows when {Sermsmg the inpalment los. These estmatee aro bored on sssumions about 2 ‘omer factors and sta esis may ce, resullg in fue changes ote allowance Loans ané advances that have been assessed iniuely (and found not tobe impares) be soscasd fopote’ win el Indiduaty signin! taane and advances in groups of cea wih siaar rk charetotstes. Tas lst deteine wheher provision shoulé De ‘ade du to Incures ‘ss events for which there ls objective evidence, bl the eects of tthe are net yet evident The collstie arcescrent axes account of dala rom the lan porfoio isch as lvls of eas, ced useaton, antocolaerl ratos, ele), and Flagemens ov fhe elect of conoentatone of rks and ecanome data (incuding levels of ‘inemloyment, realestate peas ldces, county risk and the perormance of dferent nau grou). ‘Aliowanceforinpalrment of avaitable-orsale investments ‘The Bank and its subsdories revew debt secuites classified as avaletie‘or-saie Thvestment at raping date fo assess whether they afe impard. This requres similar Judgements as sppled fo fhe nchidual aseastmen loans and advances to customers. “The Bank and subsidies azo records ingakment charges on avalablefor-sale eauly Investmanis when tee has been a sgnfcat or prolonged decline te fa value below ther cost The determination of what "sgnicart of ‘prolonged requires Judgement. n making tis judgemenn, the Bank and is subsdaries evalua, among other fects, Fisorte! share prise movements ‘nd duaon and extent to which the fa vale of an Investment les than # cost Coster valuation “The Bank and ts subsdaties sock to use collateral, where poss, oma its ks on ‘inanealaseets The eollataral comes n varus fms such as cash, sacuries, ltrs of ‘edliguaraniots Teal esata, rosiabes, vetoes, her nonionic assets and credit rvancements euch as neting agresments The far value of costal is general Sotocsod aa rammum,stinogton and based onthe Bar's quarter reporting schedve, owever some colateal, for example, cash oF socutles rotting. 12. merging equrements, is valued daly “To the extent possible, the Bank and is evbedaras use acve market data for vaing Tronclal assets held a colator. Other facial aces which do not have a realy ‘etermnable market vae are valued sing models. Nerfnancal eter), such a8 real tsat, Valued based on deta provided by tna partes such as morgage brokers, housing roe indices, sudted nancial satements, ond fer independent sures, 6 assent Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (contnued) ‘8 ond forthe yar ended $1 Decombor 2016 33 aa4 332 0 w ACCOUNTING POLICIES (contnues) ‘Summary of sgnifieant accountng policies Foreign cureney tanstation For each ent nthe group, the Bark and is subsaes determine the funcional curency ‘and toms Induded in he traraal sttamerts of each enty are measured sing Mat ‘unclona corency. The Bank and is subsdares use the eect metod of conscdation ‘and have clacted wo ree the gan or los that arise fem using ts method. Transactons and blonces Transactions in foeign cutences are intl recorded at he spt rat of exchange rung st ie of a reneacton, Monetary assets and lables denominated in foreign curences ae retransiaad at the Spot ate of exchange atte epering data. Al derences afsng on nottradng ecvies {re akon fo aher operating income n He concolsd Stemont f prof or ose Non-montary ems that are measure in terms of historical cost ina fregn currency are tranltes using the spot exchange “ates 3 te date of recognition. Non-monelry sors Imassured ata value ns frelgn curency are ranted using (he spot exchenge flee at the dato when the fa valve was delarmaine Financial Instruments - Intl recogntion and subsequent measurement aa of eoogntion ‘A fnancial assets an abies are intial recognized onthe rade cat, othe date at the Bank and te eunesares bocome spat tthe contaclal prove otha nabument. ‘Ths includes “roguler way Yades" - purchases of cals of financial seets that reque ‘Sever of sets wit the ene Fane general establishes by repulaten oe convention the maria place Inia! measurement inanciat instruments ‘Tha ctsefcaton of franca insurers st rita recogiten depends on th purpose and the managements intanton ‘or wm tbe Tani ratuments ee eoqures ad Tar Characerstes, Al fmancil arumenta are measured Italy at tel fa value plus trancocton costa, exeapt inthe case of earl asate ard nancial Habits rocorée at {aivalue trough rt or ss" ‘The derivate farcilnsuments are recorded at ar value through prot ross “The Bank and is svsiaros use derivative natal insruments suchas forward nd sap ‘contacts. Detvave mstuments are recorded a fair valve ard recoded as assets when far ave ig postive of lables when far value negate. Changes in far value ae reorcedin"Notrasig income" 1" Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (conbnves) ‘bat and forthe your ended 31 Dacarber20°8 3s 332 ™ [AGCOUNTING POLICIES (conines) Summary of significant accounting poi (contnued) Financial instruments nal recognition and subsequent measurement (contrued) Fanci assets end franc iebiveshetortadng Financial assets of lbs hak-orxading are recorded in the conslated fnancil Slatoments at fab vale. Changes fa value are recorded "Not radg Income” terest Income or expenses and dhadencs are Tesorded "Nel Yosing Income” scorer 1 ‘tiles of contact r payenent rights estabistes Inouded In tie essefication ara debt secures and equls that have bean sequied ‘ineial for te purpose of sling or repuchasing In hea te, “Day 1 prottoriess ‘when the transaction price difers fom the far valve of otter obseratie curent market treneacons nthe ame nerument or based on auton technique whewe verabias inctge ony dat fom odsecabie markets, the Bank ard es subsiaisies immediatly ‘oagie the ferns Sesween the ranachon pie a fa eles (a Oay 1 Pf cr 055) Ine rding nome” In cases where far vaio is deteined using data which isnot ‘bearable, the dference detnesn the vansacton pres and model vale is oly coated ih the slatament ef preft or los whon the inp become. coserabl or wen te instruments recognised, Avago sae ivesiment secuntos ‘valableforsale nvesimert securtiss include gully and dett securities Eauity investments casslfed as avatabeeforssle are thse whieh are nether classified as Nela- {trading nor designate at fa vake trough prior oss Debt secur in Dis category fe intandec fo be hed for an indefintepered of me and may be sak Fo tesponse to oode fo quo in esponse to changes inthe market condtons. “The Bank and ts subsidies have not designated any leans or recehables as avalablefor- oe. Ato nial recogolion, avatabiaforaale investment secures ae subeequenly measures stave Unease gaits end losses so recognised diecty in equity (ther comprehensive Inco} in the ‘Avaiabiforsale reser" When the invetivent i deposed of the ‘Cumulative can or loss prevousy recsgned In equity i recognised i the consoldates Sistoment of sotto ies in Other operaing ican” Interest earned whit holng fralabioterssie mvestmact secuties ls reported as interest nome using the ER. Didends camed whist holaing avalelevoraale Invecimontsocuites ae recognised in the conspiaates statement of pot ols ae “Other eperatng Income’ wen th Tht of the payment hat been esiablenes. The loses asing om impairment of such ivesenis fre reeagnsed inthe conseldate slatement of pro or loss f "inparment losses on final! aecats and removed fem “Avatobe Tor le osero" te tate Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continues) Beat and forthe year ended 31 December 2015 a3 332 wi iy [ACCOUNTING POLICIES (continued) ‘Summary of significant accountng polices (contin) Financial instruments ina recognition and subsequent moasurement conte) Holdsomatrty investment seuntios Hetttomaturty investment secures are non-derivativefnencial assets wit fixes or ‘etermaole poyments and fed mats, wrion te Bank and ecaiaios have the {Merion and aol fo hold to matury. Aer ital measurement, heldto-matury investment secures are subsequenty reasured ct amorised cost using the effective Invest rate (if) less mgorment Amores cots caluistod by taking Into account any (iscount © premium on soquetion a foes that are an itagral pat of the EIR. The ‘Smortscton's nosed in “nerast and siniar Income” tho consolidated slalement of ‘role loss. The losses sing Fem mpatment of such vestments are recogrised inthe onsolted statment of prof or os a mparman isos on fnscil asst It the Bark and ts subsides ware tose or ralassy mere han an insignis amount Or nals maturity vestments ‘before matty” (aber than In certan specific ‘rmstances. the ene eaepory would be asved and would have fo be recessed as Svelableforsale. Furthermore, the Bank ands subscales would be prone from Gassing any tarda astet aa estao-matuiy during be folowing two years Deposits and loans fo other banks, loans and edvences fo customers Deposits at and loans to oer cred nstuons and loans end advances to customers are Rondervatvefnaneal easels wih fed or defile seta erm and ot Hsted Ins ‘Setve marcel exceps 1» Those thatthe Bank and its subsidiaries intend to sol immediate or in te near term 2nd those tnt tha Bank and is subse, vpn inal recognition, desgnate 3a fait ‘alu through prof aos Those hat he Bank and is cubes, enon intial recog, designate as eval focsale, or Those for which the Bank and its susldaries may not recover substantia al of ts ‘ta investment cher than because of cred deterraion ‘Atrial measurement, hese assets are subsequently measured at amorised coat sing In sae slbnance for moar Amorieed cost eluate by laking nt account any fdscoant or premium en aeqution and eas and costs thal are an itera pr ofthe EI. ‘The arostseon is led in terest ans sia’ ncame ine console statement of Dron oF loss The loreee avisng from imearmem are recognised In the consolidates Sitemant ot prof or les in imparment ieee on Manco asses 1” oe bora Vietnam Technological and Commercial Joint Stock Bank [NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (contowec) ‘3 at and fer he year ended 31 December 2015 3 aa a2 oo ” ACCOUNTING POLICES fontnves) ‘Summary of significant accounting policies (contued) Financial instruments inital recognition an subsequent measurement (continues) ‘Bed debts ldo Visnam Asset Managament Company (VAMC) ‘The Gank sold bad loans to VAMC tases on te took value under Decision No SSrRoTaND.CP wneh le etfecive ftom 8 lly 2073 on “Exabenment, organization and peraton of Visham Asset Management Company’, Creer No. 1(20¥3/T-NHNN (fectva on & September 20°9 provéing "Regusons of purchase, sle ang handing bad eb of Vietnam Asset Management Company" Undo te book valve metiod, the seg bie ie determined by balance ofa bed dem minus fa urusad spate pov ara wil bs {ceived in form ofa spell bond Issued by VAMC. The main tes fr saling bad des to ‘VAMC and recon spel bands by VAMC: nase: During the tam of speci! bonds, th principals or itorest covered by the Bank (a fentustes bj VAMC) or VAN. (recovery amount) must be dopostod bio blockades "ccounts of VAMC at he Bark. the Bank has “einanoe nan Based on spec bones, Wins werking days of he next quar, VAMC uses he recovery amount ented by the dank repay eetinanging loan f te Ban > During the term of spacial tonds, cet insutons must make provson for loss of {spoaal bonds uih eater than he fac vas ef ban at ue te ‘VAMC i ranted fe for purchase and management of bed debi ofthe Bonk “The Bank uses special bends to repurenase had debs so to VAMC aocoring to book salu o VAN at due date ofthe bon bag debts are nt handled 9 ly recovers “The Bank ures prousion when has been mate to net agains balance of pschased debe and manos hese Gots nthe of clan sheet Given the stove tems nd condos, the Bank has efechvly not rancforred eubeantil "sk a rewards rom Bev fans and preserves recovery right rom cash flaws aie fom these loans. Therefore, tesa loans are not qualified to be Gerecognized and contrue to be ‘montored inthe lan porto ofthe Bank Measurement ofthese loans is made say 1 ‘common loans fo cestomers Vatiaie papers issued and cher borrowed funds Final Inaburants sued by te Bank that are not designate a fe was hous pati forlee, af clactled 3s lables under Valuable paper aed and Enusted funds, where the auotance ofthe contractual srrangement resus nt Sark having an obligation strat {0 delve cash of another nancial srsetto ta nade, oto sat the obigaon oes tan by the exchange ofa fixed emovnt of eas or enobet named zea for 2 fxd numbor of ‘oun uly shares. ‘Ar inal mossurement, valuable papers issued and entustes funds are subsequenty eased at amorsed cost using the EIR. Amortsed cost is calculated by tating fio ‘oeount any elecount or prom on the esos and cost tht ae an aga pat ofthe EIR. ‘A compound finan instrument wich contain sh a tilly and an enuly components Separated tthe ese date A orton ofthe Net proceed of the Instumar! i allcated fo {he dabt component on the zeta of abe based on fs Tae valu (whieh generally teins baced on the quoted market pices fr sinlar det instruments). The equty ‘cormponent ip aeigned the resol smu ats: Geductng from the far value ofthe Insvument as a wnat te amount separately eeteminod forte de component. The value ‘of any drive festires (such 06 0 call open) embadded inthe compoud Marcil Instrument ether than the ect component is nied inthe bt cortonent 2 dere Sas aie Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (consoues) 15 at and forthe your enaed 31 December 2018 aa 332 333 0 [ACCOUNTING POLICES (continued) ‘Summary of signfeant accountng policies (contin) Finanlal instruments - nti! recognition and subsequent measurement (continues) Feclasifeaton of franca assets Etlectve tom 1 Ju 2008, the Bank nd its subsidiaries were ported o recast, in Carian eicometances, non-senvalve inane! assels out ofthe halefertadeg calngory She it the avalabe-forsale loans and recevblon, hel to-metlyealegotes. Fam ‘his dale, wns aso porated wo reese. catan ercunstances, tance’ etnonts ut of the avalatieforsale category and info Be loans and recewables calgon. Reciseticatons are records st far value at he date of reclassification, when becomes the new amend cost, Foca financial asset elesied ou ofthe avalable- forsale category, any previous gain or Tots on that aset that has been recogrsed In equ is amorsed to prot or loss over the remaining te ofthe mvesiment veng tne EIR. Ary diferonee Doteen the new amore ‘oat and the expected cash hows ako aiotzed over to reraing Ife of Pe aseotveng the EIR I tha assets subeequenty determined tobe Impaled, ten the amount recoded In egy i tecyeled othe ttament prof or os ‘The Bank and its subsidies may rassfy a non-dervative tang asset oto heels fortvasng estagory and ito the loane and rcovsbies enegory Ft moots te sainiton ot toang and receivables andthe Bank a ts sutsdaries Rave the Irtnton and aby to hold the francs! asst for ina foreseeable foe. o untl may. If 2 fanaa seat ‘eelasies, ana fe Sark subsequent nereases fs estimates of ue cash ree 25 ( reeut ‘of incrases recoverabiy of those sash recat the fle of that neabe ‘esogalsed as an alusimentio the EIR fom the dato ofthe change in estinate. Reclasiicaton is 2 the election of management, and determined on an instrument by Insrumert bess, The Bane and is subsklares do et reclassify ary farca instument Into the foe valve tough prof or oe catagory ate iti Yecagnion Derecognition of financial assets and financial abilities Financil assets Afnancal esse (or, where appiabl apart of fnancial asset or prof group of siar rane see) sderecogaed wher > The rights to resive cash fows fom the asst have expire > The Bank ane its substi havo transfered is ight fo recive cash fows from the aseel of has assumed an obligation fo ay the recsived cash flows in fll wihout ‘tril doy toa hd party unr paeetough arrangement and ether, th Bank ands aviares nave Yanefered stanly a the ks and rot ofthe asset =the Bank an te subsidiaries have rstherransfered nor retained substantial all ‘Be teks and prt of he asst tut nave anstrred conto he sssat nen the Bank and is subsives have vansfered its ight receive cash flows fom an asset of hat ened into a pase-vough arangomert, and bas ether tanslered nor Fetained subtotal all the risks an awards ofthe aise ror Fansfrred contol of te tszet, tha asel i recognized to he extent of he Bank and fs substan coring [Gvotemant In the sete. In that cose, te Gank and te subetaree also recognize an ‘etodiated labity, The asses asst and tne sosoiaoa labity © Meabufed 09 8 ‘esis that ols tha gh and obtgatons thal the Bank ands subidares have retained a Vietnam Technological and Commercial Joint Stock Bank 33 333 @ 334 'S TO THE CONSOLIDATED FINANCIAL STATEMENTS (contnued) and fe the year ended 31 December 2015, [ACCOUNTING POLICIES contrued) ‘Summary of significant accountng polices (continues) DDerecognition of fnancal assets and fianciallabltis (cornued} Financial assets (contin) Continuing involvement that akes the frm of a guarantee over the transfered asset is measured atthe ower of the erignal earyng amount ofthe aseet and the maximum ‘mount of coneiseraion thal the Sank and suballariosceuld ba roqured loopy insole ais ‘A tania! abit is derecopnized wien the obligation under he liblly Is dscherged or Canceled of excites, Where an exsting ancl laity is eptacod by another tom the Same fonder on subetantaly ferent terms, or the tems of an exstng lebiy, are Sitstanlalymocifed, such an exchange or mecieaton sweated asa drecogntion of he ‘rial labiy andthe resogntion of@ new fabliy. The dfrence between ie cary Vale of the orginal inset labty ane the coneieralon paid recog In ta onsoldated statement of oft orloss. ‘Repurchase and reverse repurchase agreements Scuites sod under agreements to repurchase ata speci date in the ure se sil ‘ecogrized on te consoicstod Tarcialstatomerts as te Bark ad ts subsidiaries retain ‘Subetatty alo ek and fewares of ownership. The coresponaing cash recoted Fran {hae agreements end coresponding payment rently of th cash received, Inling ‘ectued wires payanes, ae Tecognzed on the consoadtad satemont of aril Boston at a tabsty in "Reputehase commamets' for purpose of celecing ezonome ‘ature ofthese tansactons ae a borrowing fo the Bark ané ts ubsicares. The dlerence Between the sole pce and repurchase pices Ineest expense and accrued during te ‘fective duration Of the contac! using the elective lfest ate mathoa. When countr pay has oft sl or morgage bonds, eujecive fo derail cases that the Bank ards ites fecasety there bance inthe corsa nancial patton reper in anal faseets eid for adng mortgaged 28 oolstral or avalale forsale Trandial westmont ‘motgaged as caters, (Conversely, secures purchased under agreements to esol aa specif date nthe future ‘xe not recognizes Inthe consldated financial slstoments. The coresporcing cas) pals Gndor these agreements including accned Inorest reoslabies le recoghzod nthe {onsoldeied statment of inncil positon as an sca in "Ravers purchase commitments" {ox purpose of eflecing economic nature a hese ransactons oss oan to tho Bark aa is ‘Sualdaroe The ference botwoon the purchase price and resale prices recorded in Net Interest ond simior income” and accued curag tne elec duration of te contact using ‘tech inert rae method 2 Vietnam Technological and Commercial Joint Stock Bank [NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (contouss) ‘3s stand fer the yoarensed 31 December 2015 3. ACCOUNTING POLICIES (contnues) 23 Summary of significant accountng policies (continued) 335 Classiiaton of fnancial instruments ‘The Bank and ts subsitiaies clasly fharcal nstuments based on the nature of Infomation, ss well a he characteris of nreiliarumen that. The flowing able preeris te dassifeaton of faancalnsiuments sapped cotegay rou (asd ya 59 (aden by Oem Dest enente| Recogied tae value Finan esata for Eau soci IMisogrgrtioress Facngpuronee = Gaiatnee nn edsing Francs! Loansandecenaien S028 ar abvances oes rd tons sme ‘oars eng advances to Pesoat ans (eal) Sieber Eapeate Inveinen cect tt see Investnent seater tt eerie Ines securaes ony sures Het orang ouosos epost om oe rea stone ecogrized ata valve Devos Fem ctarers Fancal — Recorsedstsretzes Situ funds fsues oat ‘ata per ise Franoal esr yu nan users contac Ghent Leterot Cost 2 Vietnam Technological and Commercial Joint Stock Bank [NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (consnued) ‘salad fer the year ended 31 December 2015 3 33 aa6 saz [ACCOUNTING POLICIES (connues) ‘Summary of significant accounting policies (continue) Determination of flr valve ‘The fer vas for financial istumants raed In ave markets at te reparing cate is based on thar quotas market pen or eal prea quotations (oi rcs for fong postions land ack poe or short postions), without ny deduction for banescton cost, For alother franca struments not waded nan ace markt the fa value fs eterrined by using appropiate valuaton techniques. Valston techigues Incuce the dscouriod ash flow mathos, comparison to sear nsbuments for whch martel observable pices ‘Set plone pking model, eect mades and other relevant valuston modal CCenain hand intuments ae recorded at fa value using valuaton techrigues in whlch ‘Sorent market Faseacons of atsenvaie matt gaia are ot svalltle. The far value Is ‘Seterinad usng a valuation model tat hae boon tested againet prone orp etl tmartttransactone apd sig the Bark and as subscanos best estinala ofthe most Sppropiate mace! assumpons. Models ar adjusted to reflect he spread fo bid and ask pes 10 retest ccts to lose eu pston, credit and debit valuaton adjustments, uly Epreas and imations in te models, Ase, proto: loss calculated wen such financial inerumants are ft recorded (‘Day {proto los) deterred ana onagnaed aly when the nuts bozome cbserable oon deecogniion of henstument. Impaiement of fnancal assets Atha reporting dato ofthe consolted franca statement, the Ban and is subsisiios ‘assess whether heres any objctive evidence that afrancalaset oa group of fnancial ‘asset is mgawedA nao asst ora group of nancial sets is doomed toe impared it-and ony, there isobjesive evidence of paint aa fect of one of ere evens thet have dacured afte he Ina recognition of te aeet (an esr ans event) ans at Toes ever (or ever) has an pact onthe esbmated fuure cash Nows ofthe Fanci) ‘see or he group of nacilascts thal canbe reliably estimated Evidence of impairment may ieude inloatons tha he borowsr ora group of borrowers is faparaneng nica: franca ciety: the probabity tat hey wil ener Bankuptey oF ‘ter financalfergansaten, default or delinquency i itret or pra payments, and here coseratia cata deste tha thre t measurable decease n he estmate ure ‘ash hows, such es changos fs arears or economic condone that corelate wit deat Financia assts cared at amortized cost For financial assets cari at amorised cost (euch as epost at and loans o other banks, ‘cant ane aevaneae to eustorers oe wal ae Pei to maby vestments). the Bank ad is subsisare fret ateorsindivvaly whelber abjecine evaence of imparment ecst fr nance aseos thet sf avdvaysignfeant, or colectvey for ancl assets that sre to! Indiidvely significant. the Ban and He eubesaioe determine that ro bjectve ‘vidence of ipaiment exis for ah Indiacualy assossod fnancial asso it Incues the Sssot n'a group of nancial sete wih semler cede st characterises and calecivey ‘assess Hem for parent: Assets nat are ndaually assessed for mpalmort and fo "whch an impale os, or continues Io be, recognsed are not included in 2 collective Sssessment of parent. a Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS eontnued) ‘8 ond forthe yar ended 31 Decomber 2018 3, ACCOUNTING POLICIES (coninuse) 13 Summary osignifant accounting policies (conte) 327 Impainmentof nancial assets coninues) @Finaneie aeste cane ot amortized cot feontnad) It rei cblectve evidence hat an impair os hasbeen cured, the amount of he loss fs measured a6 the eiference between te askets caryng srauft rd te present ‘ati of ectnaea future cash tows (excl flue expected cred uses tha have not Yet been incurred). The caring amount of Ie sect le reduced trough the use of an ‘lowance account and te amount ofthe oss f recognised inte consobdted statement ‘of prot cr lee Inara! ircoma continues to be Scrved onthe redueee eayng amount land's acerved Usng the rate of eres Used © escount the fue cash fowe fr the orpoes of messing the impatmentiose. The itret income i recoded as part of Finest snd similar nome” Loans togeter wit the assocated alowance are wien off when thee ino reskstic prospect of fate recovery ana ell calataral has beonroalced or has boon ranted fo {he Bank and fs subsidrec, if, In a subsoquent year, the amount of the estimated Impatment loss nceases of secrsases because ofan vert oecuring ae ho ipaimont ‘wae recognises. the. previously recognises inpakmen’ loss i mcressed of recucad by ‘Sgusing fe alowance account I fre wib-off iar recovered, te feonery 8 ‘edad otha "impakmontlosss on franca aso0 ‘The present value of te estinstd future cash Fows is counted atthe farcal asset's final EIR. I tan has varie crest rte, te dscount rae for measutng any Imparment los ste cent EIR, the Bank an is sabes have relate vadng ‘teal to loan, advances ard farce lease to customers the decount re for messing ‘ay impatment loss ls he new EIR cetermines a the fedasafeaton cate. The oacuaton ‘Sf the prosontvaluy ef the eslinad he cash fows of colatralee lnaneal asset Fetect the cash flows tht may resul for eectosure ess cos for erating and selng the cotatrat whether o ot avenue fe probebl For the purpose of cotectve evaluation of impaiment, nancial assets ae grouped onthe baes ofthe Bank an ts susie’ ntl ced grading oystom, tat condders cet isk characterstos such as assettype, dus, geographical locaton, colteral ype, past ‘ie statue and her vlovant acre Future cash flows on 2 grup of financial assets that are collectively evaluated for Impatient se estimated on the bass of Histonca loss experiance for asses wh eed sk Characanstes emir to tho in tho group. Hatorcal bss experience is adjusted on te basis ofcutent observable dats 10 reflec! tne efecs of currant conditons on which the ioral ees experience is bated and fo remove the effect of concions nthe historical eva iat donot ext current Estimates of changes in future cashflows reflec, and ae deccnaly consstont wih, ‘hangs I elated Observable data ftom yer fo year [suchas changes 6 unempoymant fas, propor pices, commodity pes, payment sats, or oter factors tat ate eat ‘of incured losses te group and thee magnitude). Toe methedotogy and assumptions teed for estmating fire cash ows are tviewed regu to rosuue any diferenoes between oss estates and stual oss experience. 2 Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (contnued) {sat and forthe your ended 31 December 2018, 3 33 aa7 @ 338 [ACCOUNTING POLICIES (conirued) ‘Summary of significant accountng potices (conued) Impsrment of Financia assets (conned) Avaobetosole investment securtos For avlableforsae investment sarues, he Bank and ts subsaras assess af each ‘reporting dae of the cansoldsted Tanda slsterents wheter there i bjecbve erence that an mvestment smal In the case of det insturents classed a avaiable forse, the Bark ants subseaios ‘ssass ndidualy whater there is objctve evidence of inpalrment based on the same Gileca a6 Mancal assets cored at ancrised cox. However, the amour recordes for “ipairmon ste curative loss measured ae the diference tween the amotices cost ‘2nd te curent far vaua, les any Inparmont loss on that nvesmert provusly fecogrised inthe conesicated saterment of prof ols, Future interest Income based ‘onthe reduced saryng amaunt and is acerued Using the rate of interest used Yo aseaunt {he future cashflows for ta purpose of measuing te impatment oss. Tho Mires core {is recoued ae pat of "nares! ord simlar ncame” I ns subssavert pet, ha fa valve ‘fa debt nsrument creases and tha mereate can be objectively relatos fo 8 el event ‘Securing ater the mparent oss was ‘ecognised Inte Concldted statement of pot of Tos, tne mparment ssi reversed trough the consoscaed statement fp ors Inne case of equity lnastmane classified as avolablefor-sal,objecte aidence woul ‘alsa Include a"sigaficant” or "protonged” deci inthe fi value of investment below is ‘ost The Bank and fe subslaros reat “agnican” ganerall a6 20% and "longed? ‘general ae greater han six months Where eres evidence of impakment ine curative ites moacurea os the atforencebetwoan the aoguistion det andthe cron fa alo, Toes {any patents on tet Investment previously recognised n te concaaed statement {ot pott or loss ~ Is removed for eauly and recogniced inthe consolidates eatement of Prot or loss. Impaiment losses on equiy investments are not reversed through the Conaoldatedslsement of prof or loss increases inthe far va efter psiment ate Fecogrisedin*Othercompranonsiv income” Impairment of non-financial assets ‘The Sank and ts substavres assess at each reporting date whether there isan ination ‘hal an asset may be Imoared, i any dato exes, or when anual nsarmert testing for an atcet ls require, the Bank ands subsides estnate be asc rocoverable ‘runt An asset reoverole amount i the higher ofan asset's or CGUs fa vale less oat ela is value in use, Where the carrying amount ofan ase or CGU exceed its ‘ecoverabie amour, te asset a conslcered impares ar writen down tts recoverable ‘run. In assessing value in use, the estimated future cash tows ae cecounted o thle resent valle using pro-ax dlesount rate tat reflects curent market acsassments ofthe time ‘ati of money andtn sks specif to ha asset In deterring fa valu less costs cal, ‘an appropriate valuation modes Used, These calculatons ae careborated by valustan Tuts, quoted share prces fo publicly Wadd subsidiaries or oer avaable far vate Inaestors. Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANGIAL STATEMENTS (consnued) ‘2s and forthe yoarendod 31 Decerber 2016 2, ACCOUNTING POLICIES continvee) 23, Summary ofsignifleant accounting polletes(contcuss) 33.8 Impolrment of non-financial assets (cornued) For asset (exhuing good, an assesment ie mode at each eparing dato os 10 hater theres any indlesion tat pevousy recognised impaiment loses may no longet ‘vst or may have deveased. If fuch Indication ecsis, the Bank and ts subse fstmate he assets or CGU' recoverable amount. A previously recognised imparment ‘Gee's revered ony there has ben a change Inthe essumptons used to determine De ‘ezots recoverable amount ence the lst impalen! loss was recognised The reversal is lmted stat th coming eeu ofthe asret dos nt exceed Is recoverable a Teun, 26 ‘exceeds te caring amount thal would have been determined, net of dpreiaton, had" Imparment toss bee recognisd forthe astet por years. Sich reversals recognised In the consoldeled stata of roto se Imgaimont losses relating to gooewil are rot reversed in fture pesos, 33.8 Ofseiting of rancil instruments Fiancal assets and tancil bites re offset and the net amount reported inthe ‘consolidated nancial ttemonts fan ony, theres a cure enforceable legal ight to ‘fet he recognises amounts ar there san taro to sate ona et bass, of 0 reais the asec and wate te Heity smultanesvaly Ths snot gonaraly tho ese wi mastor noting agreement, terforo, te road aseots and ais ao presented gross he Consolidates feancl statements, 23.40 Leasing “The determination of whether an arrangements lease, or contin a ese, based cn ‘he substanca ofthe aangemart and feales an assessment of whethar fe ffient of Ie stengements sepencent on te use «specie asset cr assots an the arangeriont conveys. grt use he asset () The Bank ond ts subsisiny a lessees Leases that do not wansfer to the Sank and ts subsldares substanialy all th risks and bones incenal fo ownership ofthe leased tors are operating Weases. Operating lease payments are recomised as an exoense inthe satent of pot or oss ona sagheine bass over the lease fem. Contngent real payabie Is recognised asa exoecse Ip the fod n wrieh hey are ncured Tho Bank ad ts substan 2s lessons eases where the Bank and is subsciares donot ansfar substantially ai ofthe risk and ‘anole of ewnarship of tho asset are clastied 28 operating leases, Intact costs ‘Seured in negotaing operating leaves are added to te caving aroun ofthe lased ‘asset and vecognised over the lease ter on the same bas’ a rental income, Conngent is ara rocoghised a5 rverve inte pero n which tay are eared, 2 Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (contoues) as at and fre year encod 31 December 2015 3. ACCOUNTING POLICIES (continues) 32 Summary of signitioant accountng polls (continue) 33.11 Recognition of income and expenses Revenue is recognised toe extent hat tis probable thatthe econrric benef il ow to the Bonk and fy subedianes nd the revenue can be roisby moasuree, The flowing peat reoogiion erteria mast sto be mel osorerevenve Is ecoansed. (9 tnerest ena sinter ncome and expenses For all francal nsvuments measured at amorise oo, interest bearing tna assets (Caustled ao avalatle ‘oral and fnancll neuen cesignated 2 it vaio (Waugh Proto less, tree income oF expanses Is fecotdea usrg the EIR ER lhe rat hat rect discounts estimated future cash peyments of receipts trough the expected ie of the nan insturect ofa shter pelos, where appropri, tthe net carry amount of the facial asset or fnancallabity. The caulaton takes ilo account al contractual tems othe trance nsument (or sxampl,jepayrnantoptns) ane cuses any Tees or Incremental costs thal ae direct toute to he hstument ord ee an egal pat of Iho, but not ute creat oases ‘The caryng amount of he franca asotofnarcial abil is adusted f the Bank and its subsgaea fevse ls estimaise of payments or recebls. The adustea caring amu s {alosaied based on the oighal EIR and the chenge hn carving amour 6 Tecordad 25 Sinorst and simile incom for finan! assols and “intr! nd inlay expenses" fr finan abies, However, or aretosiied feancia asset Note 3.3.2) for which the Bank ‘ands subsiiais subsequent nceases ls estimates offre cash recaps as a result (of mereasea recoverabityof thse cash recaps, the efect of at erease Is roogrised ‘3 an achstment tothe EIR tom he dal of he change estimate ‘Once he recorded value ofa fancial asset ora group of sina francial assets has bean ‘eguoad due fo an mpairmert fess, rest Income conkeues to be Feeoghed using the {ate of ores! used to iscount re Ture cash flows for te purpose of measuring The Itnpament ss Fees and commission income “The Bank and fs eubsidries cam feos and comission income fem a derse range of {eroes ney proviso thar custors, Fees incoma can be cided ino he flowing Wo categories Fees income eemed fom services that aro provided over a corn paiod of tino: Fees ‘med forthe provision of sosions over pero of tne ave accrued evsthat pion ‘Thees fess indude commission income ah asst management. custody and oor ‘management and advisory fe=s, > Fo0s income tom providing tansacton sonoes: Foes aising trom negotiating ot parcioating nto negotiator ofa ransacton ora tits ary, such 2s the arrangement ‘tthe scqulston of snares or cher secre or he purchace o sale of businesses ae fecognsed on completion ofthe undetyng transaction, Fees or components of fees ‘hat are ike toa cetan performance ae recognised ae fulng fe cresponcing @ —Divsena income Revorue is recognised when the Bank and is substi’ night to recalve the payments ‘siblshe, which s goneraly when te sharehoiers approve he dso. 2 Vietnam Technological and Commercial Joint Stock Bank NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (contnued) 88 at and fer he year ended 31 Dacerbe: 2018 3 33 aast 7 aa a3 ACCOUNTING POLICIES (ceninves) ‘Summary of significant accountng police (contues) ‘Recognition of income and expenses (cortnued) Net trang income Rests arising trom tasing activi inde al gens and loses from changes in fe vate land feialed erst Income or expense ahd dikonds for Mancal assets and francis) abies red for tracing, {Cash and cash equivalents (Gath and cash equivalents incude cash, gold and gemstones, balances wih the SEV. ‘Goverment promizeory notes ana ohervatable papers. which are tga fer decaunt Balances wih ater cred nstiutors wth ginal terms to marty not exceeding thes ‘onthe rom he ansacton date Derivative nancial instruments “The far value of darvatve financial insrumenls ae recorded a assets or labios assoobted with ther naman! vale. Nominal vale (ess vale) i value of bais assets (exchange ‘te, nest ate of dex) af corwatwe Nnancal struments and isa basis ‘determine changes in fa ve of ancl nstuments, Nominal value recs volume of Unvealzes ansactone a the end of para and excuses market rk or Umency isk [At recognition Ste, dervave fnacialintuments ony include conacual agreements ‘betwen to parts wt few or no comsensaton aries. However, tse nstuments on have nigh leverage an grat movement A reavely smal moversen In aosck vats, Interest fate ndex of donvatve contract can lead To considerable pact on statement (of pot ors cf te Bank and is subsites ‘rating dervatve contracts in united market can make the Bank and its subsisiies meet ‘iskuhen tere ina mart Kl closing positon “The ks the Bank ands subsdares bear to derwatve contracts re montored sti as a ertot market isk management of he Bark (Not 23.4) Forward contact Foard contacts are contractual agreements o buy o sol a specie thancial intument fat 2 specie pice and date in the fie CutencyTorwatds ere customzed contacts tranasced inthe untae marke, ‘The main dferonces in the dicks associated wih forwaré contacts are cod isk and lquiy tek. The Sank ara subsides fave coat exposure fo i counlrpates of foto conte. Forward convacs ae soled grass onde, theraore, colored 12 ‘ear higher iui ik than ta ures contacts thal ae ete on net basis, Fonwsrd Contacte vesultin mata i exposure Swap contact ‘ovaps ara contractual greens betueen to partes to exchange sears of payments Fer {me based on spect nota! ancuns, nla fo moverens infin Cle ae Ina currency swap, the Bank and ts subsidies pay a spectied amount in one currency fad receive @ spaced amount manor cureney. Gurency sa are most, gross sets, = Vietnam Technological and Commercial Joint Stock Bank aa19 a1 NNSOLIDATED FINANGIAL STATEMENTS (contoued) odes 31 December 2018 [ACCOUNTING POLICIES coninuee) ‘Summary of sgnifcant accounting poticies continued) Derivative fnaeta instruments (continued) Option contract Options ae convacus! agreement tat convey the Hoh but not the bliin) forthe purchater she to buy or alla speced ameunt fa fancialnsvument a a fed price, itera a hed ute dato or at any tie winin a speted porcd The Bank and is subsdiais purchase and sal cpions though unsed marks. Options purchase by the Bank and fs subsciares provide the Sank and is substaares wih > porary to purenare (al pions) oF set (pul opfors) De underhing aseat at an ‘efeed-upon value elfen oF before te expraton af the oplan. The Bank sh te ‘Stesiarios a exposed to crac rak on purchased oplons ony to the extent of ther Sang scunt, when is ee Tar value Options wien by fe Sank and is subsidiaries prove the purchaser the apport 0 purchase fem er alo the Bank and #2 subeidanes the ondering asst ston aprene Upon value ether ono before the expan of te option. Property ana equipment Propey and equpmant ar stated at costes accmulated depression and accumulated Impaiment in value. Changes inte expecied ust Ife are acsounted for by changing the Amorteaton ered or meted, as appropriate, and tated as changes’ in accouthg Depreciation is calelstnd usg he staighi-ine method to wile down te ost of oroperty ‘and equipment fo her rescue valles over ther estimated useful Wes. Land Te not ‘Seprccated, The estimated use nes are as olows utings #-s0 yea Office equipment 3210 ars Yenciae 810 years Oter fx assets

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