Commercial Bank of Ceylon PLC

Annual Report 2019

Financial Statements

Financial Statements – Table of Content

Page No. of the printed
Annual Report

Primary Financial Statements
Income Statement 137
Statement of Profit or Loss and Other Comprehensive Income 138
Statement of Financial Position 139
Statement of Changes in Equity – Group 140
Statement of Changes in Equity – Bank 144
Statement of Cash Flows 148

Notes to the Financial Statements – General
1. Reporting Entity 149
2. Basis of Accounting 150
3. Financial Risk Management 154
4. Fair Value Measurement 156
5. Changes in Accounting Policies 156
6. Significant Accounting Policies – General 158
7. Significant Accounting Policies – Recognition of Assets and Liabilities 159
8. Significant Accounting Policies – Recognition of Income and Expense 169
9. Significant Accounting Policies – Tax Expense 170
10. Significant Accounting Policies – Statement of Cash Flows 171
11. Amendments to Accounting Standards Issued But Not Yet Effective 171

Notes to the Financial Statements – Income Statement
12. Gross Income 172
13. Net Interest Income 172
14. Net Fee and Commission Income 174
15. Net Gains/(Losses) from Trading 175
16. Net Gains/(Losses) from derecognition of Financial Assets 175
17. Net Other Operating Income 176
18. Impairment Charges and Other Losses 176
19. Personnel Expenses 179
20. Depreciation and Amortisation 179
21. Other Operating Expenses 180
22. Taxes on Financial Services 181
23. Income Tax Expense 181
24. Earnings Per Share (EPS) 183
25. Dividends on Ordinary Shares 184

Notes to the Financial Statements – Statement of Financial Position: Assets
26. Classification of Financial Assets and Financial Liabilities 184
27. Fair Value Measurement 186
28. Cash and Cash Equivalents 190
29. Balances with Central Banks 191
30. Placements with Banks 191
31. Derivative Financial Assets 192
32. Financial Assets Recognised through Profit or Loss – Measured at Fair Value 192
33. Financial Assets at Amortised Cost – Loans and Advances to Banks 195
34. Financial Assets at Amortised Cost – Loans and Advances to Other Customers 196
35. Financial Assets at Amortised Cost – Debt and Other Financial Instruments 199
36. Financial Assets measured at Fair Value through Other Comprehensive Income 201
37. Investments in Subsidiaries 204
38. Investments in Associates 207
39. Property, Plant and Equipment and Right-of-Use Assets 208
40. Investment Properties 219
41. Intangible Assets 220
42. Leasehold Property 222
43. Deferred Tax Assets and Liabilities 222
44. Other Assets 224

Notes to the Financial Statements – Statement of Financial Position: Liabilities and Equity
45. Due to Banks 225
46. Derivative Financial Liabilities 225
47. Financial Liabilities at Amortised Cost – Due to Depositors 226
48. Financial Liabilities at Amortised Cost – Other Borrowings 227
49. Current Tax Liabilities 227
50. Other Liabilities 228
51. Due to Subsidiaries 235
52. Subordinated Liabilities 235
53. Stated Capital 236
54. Share-based Payment 237
55. Statutory Reserves 239
56. Retained Earnings 240
57. Other Reserves 240
58. Non-Controlling Interest 243

Notes to the Financial Statements – Other Disclosures
59. Contingent Liabilities and Commitments 244
60. Net Assets Value per Ordinary Share 246
61. Litigation Against the Bank 246
62. Maturity Analysis – Group 247
63. Operating Segments 249
64. Related Party Disclosures 251
65. Non-Cash Items Included in Profit Before Tax 255
66. Change in Operating Assets 256
67. Change in Operating Liabilities 256
68. Operating Leases 257
69. Financial Risk Review 257
70. Events After the Reporting Period 286
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