In the case of zero-coupon bonds or the like, the valuation is at cost, the valuation being increased annually by the interest amount in proportion to the remaining maturity. Holdings of debt securities including fixed-income securities forming part of the trading portfolio are valued at market value. Holdings of shares and other variable-yield securities are valued at market value. Participating interests are valued at current value. Tangible fixed assets are valued at current value.
Debt securities issued are in general valued at redemption value.
In the case of zero-coupon bonds the valuation is at issue price, to which accrued interest is added. Reported data are gross. If a specific provision is made it is up to the reporting institution to make use of that. If so, the write-off is always at the expense of the profit and loss account. In the case of large write-offs these might be at the expense of the Fund for General Banking Risks.