ICICI Bank 2016 Annual Report Download - page 141

Annual Report 2015-2016 139
Schedules
forming part of the Accounts (Contd.)
Financial Statements of ICICI Bank Limited
installation of the asset. Depreciation is charged over the estimated useful life of a xed asset on a straight-line basis.
The useful lives of the groups of xed assets, are given below.
Asset Useful life
Premises owned by the Bank 60 years
Leased assets and improvements to leasehold premises 60 years or lease period whichever is lower
ATMs18 years
Plant and machinery1 (including ofce equipment) 10 years
Computers 3 years
Furniture and xtures16 years, 8 months
Motor vehicles15 years
Others (including software and system development expenses)14 years
1. The useful life of assets is based on historical experience of the Bank, which is different from the useful life as prescribed in
Schedule II to the Companies Act, 2013.
a) Assets purchased/sold during the year are depreciated on a pro-rata basis for the actual number of days the
asset has been put to use.
b) Items costing upto ` 5,000/- are depreciated fully over a period of 12 months from the date of purchase.
c) Assets at residences of Bank’s employees are depreciated over the estimated useful life of 5 years.
d) In case of revalued/impaired assets, depreciation is provided over the remaining useful life of the assets with
reference to revised asset values.
e) The prot on sale of premises is appropriated to capital reserve, net of transfer to statutory reserve and taxes, in
accordance with RBI guidelines.
6. Transactions involving foreign exchange
Foreign currency income and expenditure items of domestic operations are translated at the exchange rates prevailing
on the date of the transaction. Income and expenditure items of integral foreign operations (representative ofces)
are translated at daily closing rates, and income and expenditure items of non-integral foreign operations (foreign
branches and offshore banking units) are translated at quarterly average closing rates.
Monetary foreign currency assets and liabilities of domestic and integral foreign operations are translated at closing
exchange rates notied by Foreign Exchange Dealers’ Association of India (FEDAI) relevant to the balance sheet date
and the resulting gains/losses are included in the prot and loss account.
Both monetary and non-monetary foreign currency assets and liabilities of non-integral foreign operations are
translated relevant to closing exchange rates notied by FEDAI at the balance sheet date and the resulting gains/
losses from exchange differences are accumulated in the foreign currency translation reserve until the disposal of
the net investment in the non-integral foreign operations. On the disposal/partial disposal of a non-integral foreign
operation, the cumulative/proportionate amount of the exchange differences which has been accumulated in the
foreign currency translation reserve and which relates to that operation are recognised as income or expenses in the
same period in which the gain or loss on disposal is recognised.
The premium or discount arising on inception of forward exchange contracts that are entered into to establish the
amount of reporting currency required or available at the settlement date of a transaction is amortised over the life
of the contract. All other outstanding forward exchange contracts are revalued based on the exchange rates notied
by FEDAI for specied maturities and at interpolated rates for contracts of interim maturities. The contracts of longer
maturities where exchange rates are not notied by FEDAI are revalued based on the forward exchange rates implied
by the swap curves in respective currencies. The resultant gains or losses are recognised in the prot and loss
account.
Contingent liabilities on account of guarantees, endorsements and other obligations denominated in foreign
currencies are disclosed at the closing exchange rates notied by FEDAI relevant to the balance sheet date.