DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

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HEP ANNUAL REPORT 2010
CHAPTER 6 - FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE HEP GROUP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2010
18. OTHER LONG TERM ASSETS
2010 2009
HRK’000 HRK’000
Housing loan receivables 42,890 54,035
Energetic efficiency receivables – long term part 51,930 43,391
Calculated interest – RWE 16,078 19,577
Other long term asset 75 103
110,973 117,106
Prior to 1996, the Group had sold apartments it owned to its employees, the sale of which were governed by the
laws of the Republic of Croatia. This property was generally sold on credit, and the related housing receivables,
which are secured and bear interest at rates below market, are repayable on a monthly basis over periods of 20-35
years. Receivables for sold flats were transferred to new subsidiaries as of 1 July 2002. The housing receivables are
shown in the financial statements at their discounted net present values, determined using an interest rate of 6.3
%. The state payable which represents 65% of the value of sold apartments is recorded in non-current liabilities to
the state (Note 25). The receivables are secured by mortgages over the sold apartments.
According to association regulation, on all funds invested by RWE Power interest rate that in period of construction
amounted to 17% interest is calculated. Calculated interest in amount of EUR 7,536 thousands, calculated in HRK
55,653 thousands is completely recorded as deferred expense depreciated over 15 years by linear method.
Repayment of interest is done along with repayment of invested funds from RWE Power and it started after
electric power plant was finished. In 2010 total repaid amount was EUR 502 thousands or calculated in HRK 3,650
thousands (in 2009 EUR 502 thousands, recalculated in HRK 3,737).
As at 31 December 2010 deferred expense for interests amounted to EUR 2,177 thousands or recalculated to
HRK 16,078 thousands (in 2009 EUR 2,679 thousands, recalculated in HRK 19,577 thousands). Exchange differences
are represented through finance income or expenses for the year in which they occurred.