ICICI Bank 2016 Annual Report Download - page 213

Annual Report 2015-2016 211
Schedules
forming part of the Consolidated Accounts (Contd.)
Consolidated Financial Statements
SCHEDULE 17
Signicant accounting policies
Overview
ICICI Bank Limited, together with its subsidiaries, joint ventures and associates (collectively, the Group), is a diversied
nancial services group providing a wide range of banking and nancial services including commercial banking, retail
banking, project and corporate nance, working capital nance, insurance, venture capital and private equity, investment
banking, broking and treasury products and services.
ICICI Bank Limited (the Bank), incorporated in Vadodara, India is a publicly held banking company governed by the
Banking Regulation Act, 1949.
Principles of consolidation
The consolidated nancial statements include the nancials of ICICI Bank, its subsidiaries, associates and joint ventures.
Entities, in which the Bank holds, directly or indirectly, through subsidiaries and other consolidating entities, more than
50.00% of the voting rights or where it exercises control, over the composition of board of directors/governing body,
are fully consolidated on a line-by-line basis in accordance with the provisions of AS 21 on ‘Consolidated Financial
Statements’. Investments in entities where the Bank has the ability to exercise signicant inuence are accounted for
under the equity method of accounting and the pro-rata share of their prot/(loss) is included in the consolidated prot
and loss account. Assets, liabilities, income and expenditure of jointly controlled entities are consolidated using the
proportionate consolidation method. Under this method, the Bank’s share of each of the assets, liabilities, income and
expenses of the jointly controlled entity is reported in separate line items in the consolidated nancial statements.
The Bank does not consolidate entities where the signicant inuence/control is intended to be temporary or entities
which operate under severe long-term restrictions that impair their ability to transfer funds to parent/investing entity. All
signicant inter-company accounts and transactions are eliminated on consolidation.
Basis of preparation
The accounting and reporting policies of the Group used in the preparation of the consolidated nancial statements
conform to Generally Accepted Accounting Principles in India (Indian GAAP), the guidelines issued by the Reserve Bank
of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India
(IRDAI), National Housing Bank (NHB) from time to time, and the Accounting Standards notied under Section 133 of the
Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014, as applicable to relevant
companies and practices generally prevalent in the banking industry in India. In the case of the foreign subsidiaries,
Generally Accepted Accounting Principles as applicable to the respective foreign subsidiaries are followed. The Group
follows the accrual method of accounting except where otherwise stated, and the historical cost convention. In case the
accounting policies followed by a subsidiary or joint venture are different from those followed by the Bank, the same have
been disclosed in the respective accounting policy.
The preparation of consolidated nancial statements requires the management to make estimates and assumptions
that are considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of
the consolidated nancial statements and the reported income and expenses during the reporting period. Management
believes that the estimates used in the preparation of the consolidated nancial statements are prudent and reasonable.
Future results could differ from these estimates.