Bank of baroda

BANK OF BARODA
6.
Fixed Assets:
6.1
Premises and other fixed assets are stated at historical cost except those premises, which have been revalued
and appreciation, if any, on such revaluation is credited to Capital Reserve.
6.2
‘Premises’ include land and building under construction.
7.
Reserves and Surplus:
Revenue and other Reserves include Statutory Reserves created by foreign branches as per applicable local laws
and Special Reserves created in earlier years as per requirements of the Income Tax Act, 1961.
8.
Revenue Recognition:
Income is recognised on accrual basis, unless otherwise stated.
In view of the uncertainty of collection of income in cases of non-performing advances and investments, such
income is accounted for only on realisation.
Income from fees, Commission other than on Government 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 recognised Gratuity Fund, Pension Fund and provision for encashment of accumulated leave and
additional retirement benefits are made on actuarial basis.
10.
Depreciation:
10.1 Depreciation on Fixed Assets in India except computers is provided under the written down value basis at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
10.2 Depreciation on Fixed Assets outside India except computers is provided as per local laws or prevailing
practices of the host countries.
10.3 Depreciation on computers is provided on Straight Line Method at the rate of 33.33% as per the guidelines
of Reserve Bank of India.
10.4 Depreciation on ATMs is provided on Straight Line Method at the rate of 20%.
10.5 While depreciation on additions is provided for full year, no depreciation is provided in the year of sale /
disposal.
10.6 Leasehold land is amortised over the period of lease.