Page 84 - Annual Report 2022

Banka Kombëtare Tregtare Annual Report 2022 22

Banka Kombëtare Tregtare Sh.a.
Notes to the Consolidated Financial Statements for the year ended
31 December 2022 (Amounts in USD, unless otherwise stated)

3. Significant accounting policies (continued)
(s) Employee benefits (continued)

(ii) Defined benefit plans (continued)
Based on the Board of Directors resolution effective on 30 September 2010, the Bank stopped the investment in this fund (SSP),
by transforming it into the Staff Retention Credit Program (SRCP). The demographic changes in labour force during the last
ten years and the employees’ average age at 31, where 80% of employees are below the age of 40, has resulted in SSP not
being attractive for most employees of the Bank, as it can only be enjoyed at retirement. In contrast, SRCP will be more readily
beneficial for all the Bank’s staff, as it will provide consumer and home loans with preferential terms. The entire due amount
calculated for eligible employees in Staff Support Program has been frozen on the same date. The frozen amount due to change
of SSP into SRCP on 30 September 2010 and the corresponding annual interest that will be gained by the investment in AAA
sovereign bonds in the future until retirement age, is recorded as a liability by the Bank.

(iii) Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if
the Bank has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.
(t) Segment reporting
An operating segment is a component of the Bank that engages in business activities from which may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Bank’s other Components, whose
operating results are reviewed regularly by the management to make decisions about resources allocated to each segment and
assess its performance, and for which discrete financial information is available (see Note 6). The Bank’s format for segment
reporting is based on geographical segments.
(u) New Standards adopted as at 1 January 2022
Some accounting pronouncements which have become effective from 1 January 2021 and have therefore been adopted do not
have a significant impact on the Group’s financial results or position.
These amendments do not have a significant impact on these Consolidated Financial Statements and therefore the disclosures
have not been made.
(v) Standards, amendments and Interpretations to existing Standards that are not yet effective and have not been
adopted early by the Group
Other Standards and amendments that are not yet effective and have not been adopted early by the Group include:
• IFRS 17 Insurance Contracts
• Amendments to IFRS 17 Insurance Contracts (Amendments to IFRS 17 and IFRS 4)
• References to the Conceptual Framework
• Proceeds before Intended Use (Amendments to IAS 16)
• Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)
• Annual Improvements to IFRS Standards 2018-2020 Cycle (Amendments to IFRS 1, IFRS 9, IFRS 16, IAS 41)
• Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
• Deferred Tax related to Assets and Liabilities from a Single Transaction
These amendments are not expected to have a significant impact on the financial statements in the period of initial application
and therefore no disclosures have been made.