Bank of baroda

8
Revenue Recognition:
8.1
Income is recognised on accrual basis, unless otherwise stated.
8.2
In view of uncertainty of collection of income in cases of non-performing advances and investments, such
income is accounted for only on realisation.
8.3
Income from fees, commission other than on Govt. business, Exchange, Brokerage, Discount on Foreign Bills
purchased and Interest on Overdue Bills / Advance Bills is accounted for on actual realisation.
9
Retirement benefits to Employees:
Contribution to recognized gratuity fund, pension funds and provision for encashment of accumulated leave and
additional retirement benefits are accounted for on actuarial basis.
10
Deferred Revenue Expenditure:
Deferred Revenue Expenditure mainly of Voluntary Retirement Scheme Expenditure is amortised over five years
from the year in which it is incurred.
11
Taxes on Income:
Provision for income tax is made in accordance with statutory requirements of the respective countries.
Deferred tax is provided for, subject to consideration of prudence, based on taxability of income that arises in one
period and which is capable of reversal in one or more subsequent periods. While calculating the deferred tax
assets / liabilities, tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet
date are applied.
12.
Impairment of Assets:
Impairment Losses, if any, on fixed assets (including revalued assets) are recognised in accordance with the
Accounting Standard 28(“Impairment of Assets”) issued in this regard by the Institute of Chartered Accountants of
India.
13.
Contingent Liabilities:
Provision is made in account unless no reliable estimate can be made of the amount of obligation or possibility of
future cash flow is remote.

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