Revenues from provided financial facilities were recognized with the cash method up to 2003 in accordance with related decree of the Money and Credit Council. Since 2004 all bank revenues are recognized with the credit method in accordance with related accounting standards. All subsidiaries apply the credit method as well.

4.6.1. Local Units: Monetary items in foreign currency are exchanged at the exchange rate at the date of the balance sheet and nonmonetary items (cost price) in foreign currency are exchanged at the exchange rate of the disposal date. The derived differences are recognized as revenue or expenses at the date of occurrence.

4.6.2. Foreign Units: All monetary and non-monetary items (expect for shareholders' equity) of foreign units are exchanged at the exchange rate at the date of the balance sheet. Shareholders' equity is exchanged at the exchange rate of the date of equity formation. Profit and Loss figures are exchanged at the average rate of the fiscal year. The derived differences are recognized as shareholders' equity at the date of occurrence.

4.7.1. Local Units:
A) General Provision: In line with the prevailing banking regulations as administered and enforced by the Central Bank of Iran, all banks
are required to set aside 2% of their loan portfolio as a general provision for doubtful debts.
B) Specific Provision: The amount of specific provision is calculated as follows:
a. Overdue Debts 7%
b. Bad Debts 20%
c. Doubtful Debts 50 to 100%

Specific provision for (c) is done according to careful review of specialists. In line with accounting regulation policies for doubtful debts, the general provision is calculated after deduction of previous provisions.

4.7.2. Foreign Units:
Provisions for doubtful debts of foreign units are made based on the host country's accounting rules and regulations and independent auditors' judgement. The debtors' situation in the bank attorneys' point of views acts as basis for debt provisions. In some cases, a general provision is made in the accounts in proportion to the total debts.

Provision for employees' termination benefits is calculated and recorded based on each employee's most recent monthly base salary for each year of employment.

5. Cash

Non-consolidated		Consolidated
March 20, 2005	March 20, 2006	March 20, 2005	March 20, 2006	Billion Rials
187 60 - - 247	280 130 - - 410	938 127 695 5 1,765	1,047 200 68 38 1,353	Cash in Rials Cash in Forex Cash in Transit Petty Cash Total

6. Due from Central Banks

Non-consolidated		Consolidated
March 20, 2005	March 20, 2006	March 20, 2005	March 20, 2006	Billion Rials
6,210 726 - 27 11 - 244 7,218	7,046 2,589 1,493 155 11 - - 11,294	16,188 726 - 27 15 1,204 244 18,404	20,119 2,589 1,493 156 15 - - 24,372	Statutory Deposits with the Central Bank of Iran Term Deposits with Other Central Banks Current Accounts with the Central Bank of Iran Current Accounts with Other Central Banks Advance Payments for Forex Bank Saderat plc Certificate Deposits Special Deposits with the Central Bank of Iran Total