Interest received 465,169 382,636
Interest paid 177,228 146,536
1. GENERAL INFORMATION
Agricultural Bank of China Limited (the “Bank”) was transformed from the Agricultural Bank of China (the
“Former Entity”) which was a wholly state-owned commercial bank approved for setup by the People’s Bank of China (the “PBOC”) and founded on 23 February 1979 in the People’s Republic of China (the
“PRC”). On 15 January 2009, Agricultural Bank of China Limited was established after the completion of the fi nancial restructuring of the Former Entity. The Bank’s establishment was authorised by the PBOC.
The Bank has fi nancial services certifi cate No. B0002H111000001 issued by the China Banking Regulatory Commission (the “CBRC”), and business license No. 100000000005472 issued by the State Administration of Industry and Commerce of the PRC.
The principal activities of the Bank and its subsidiaries (collectively referred to as the “Group”) comprise the provision of banking services, including Renminbi (“RMB”) and foreign currency deposits, loans, payment and settlement services, assets custody services, fund management, fi nancial leasing services, insurance services and other services as approved by the relevant regulators, and the provision of related services by its overseas establishments as approved by the respective local regulators.
The head offi ce and domestic branches of the Bank and subsidiaries operating in the mainland China are referred to as “Domestic Institutions”. Branches and subsidiaries registered outside the mainland China are referred to as “Overseas Institutions”.
2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRSs”)
In the current year, the Group has applied the following new and revised IFRSs.
Amendments to IFRS 7 Disclosures — Transfers of Financial Assets Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets
Amendments to IFRS 7 Disclosures — Transfers of Financial Assets
The Group has applied for the fi rst time the amendments to IFRS 7 Disclosures — Transfers of Financial Assets in the current year. The amendments increase the disclosure requirements for transactions involving the transfer of fi nancial assets in order to provide greater transparency around risk exposures when fi nancial assets are transferred.
The Group entered into repurchase agreements with certain counterparties to sell debt securities and bills, which subject to the simultaneous agreements with commitments to repurchase at specifi ed future dates and prices. The proceeds from selling such debt securities and bills are presented as “fi nancial assets sold under repurchase agreements” (see note 37). As stipulated in the repurchase agreements, there is no transfer of the legal ownership of these debt securities and bills to the counterparties during the covered period. However, the Group is not allowed to sell or pledge these debt securities and bills during the covered period unless both parties mutually agree with such arrangement. Accordingly, the Group has determined that it retains substantially all the risks and rewards of these debt securities and bills and therefore has not derecognised from the consolidated fi nancial statements but regarded as “collateral”
for the secured lending from the counterparties. The relevant disclosures have been made regarding the transfer of these debt securities and bills on application of the amendments to IFRS 7 (see note 51).
In accordance with the transitional provisions set out in the amendments to IFRS 7, the Group has not provided comparative information for the disclosures required by the amendments.
The adoption of other new and revised IFRSs has no material impact on the Group’s fi nancial performance and positions for the current and prior years and/or on the disclosures set out in these consolidated fi nancial statements.
2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRSs”) (continued)
New and revised IFRSs issued but not yet effective
The Group has not early applied the following new and revised IFRSs that have been issued but are not yet effective:
Amendments to IFRSs Annual Improvements to IFRSs 2009–2011 Cycle1
Amendments to IFRS 7 Disclosure — Offsetting Financial Assets and Financial Liabilities1 Amendments to IFRS 9
and IFRS 7
Mandatory Effective Date of IFRS 9 and Transition Disclosures3 Amendments to IFRS 10,
IFRS 11 and IFRS 12
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interest in Other Entities: Transition Guidance1 Amendments to IFRS 10,
IFRS 12 and IAS 27
Investment Entities2
IFRS 9 Financial Instruments3
IFRS 10 Consolidated Financial Statements1
IFRS 11 Joint Arrangements1
IFRS 12 Disclosure of Interests in Other Entities1
IFRS 13 Fair Value Measurement1
IAS 19 (as revised in 2011) Employee Benefi ts1
IAS 27 (as revised in 2011) Separate Financial Statements1
IAS 28 (as revised in 2011) Investments in Associates and Joint Ventures1
Amendments to IAS 1 Presentation of Items of Other Comprehensive Income4 Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities2
1 Effective for annual periods beginning on or after 1 January 2013.
2 Effective for annual periods beginning on or after 1 January 2014.
3 Effective for annual periods beginning on or after 1 January 2015.
4 Effective for annual periods beginning on or after 1 July 2012.
2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRSs”) (continued)
New and revised IFRSs issued but not yet effective (continued)
Annual Improvements to IFRSs 2009–2011 Cycle issued in May 2012
The annual improvements to IFRSs 2009–2011 Cycle include a number of amendments to various IFRSs. The amendments are effective for annual periods beginning on or after 1 January 2013.
Amendments to IFRSs include the amendments to IAS 16 Property, Plant and Equipment; and the amendments to IAS 32 Financial Instruments: Presentation.
The amendments to IAS 16 clarify that spare parts, stand-by equipment and servicing equipment should be classifi ed as property, plant and equipment when they meet the defi nition of property, plant and equipment in IAS 16 and as inventory otherwise. The directors do not anticipate that the amendments to IAS 16 will have a signifi cant effect on the Group’s consolidated fi nancial statements.
The amendments to IAS 32 clarify that income tax relating to distributions to holders of an equity instrument and to transaction costs of an equity transaction should be accounted for in accordance with IAS 12 Income Taxes. The directors anticipate that the amendments to IAS 32 will have no effect on the Group’s consolidated fi nancial statements as the Group has already adopted this treatment.
Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities and amendments to IFRS 7 Disclosures — Offsetting Financial Assets and Financial Liabilities
The amendments to IAS 32 clarify existing application issues relating to the offset of fi nancial assets and fi nancial liabilities requirements. Specifi cally, the amendments clarify the meaning of “currently has a legally enforceable right of set-off” and “simultaneous realisation and settlement”.
The amendments to IFRS 7 require entities to disclose information about rights of offset and related arrangements (such as collateral posting requirements) for fi nancial instruments under an enforceable master netting agreement or similar arrangement.
The amendments to IFRS 7 are effective for annual periods beginning on or after 1 January 2013 and interim periods within those annual periods. The disclosures should also be provided retrospectively for all comparative periods. However, the amendments to IAS 32 are not effective until annual periods beginning on or after 1 January 2014, with retrospective application required.
The directors anticipate that the application of these amendments to IAS 32 and IFRS 7 may result in more disclosures in the consolidated fi nancial statements.
2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRSs”) (continued)
New and revised IFRSs issued but not yet effective (continued)