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

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HEP ANNUAL REPORT 2010
CHAPTER 7 - REPORTS BY HEP GROUP COMPANIES WITH FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
To the Owners of HEP Plin d.o.o.:
We have audited financial statements of HEP Plin d.o.o. (the “Company”), which comprise of the statement of financial
position as at 31 December 2010 and the related statement of income, statements of changes in shareholders’
equity and of cash flows for the year then ended, and a summary of significant accounting policies and notes to
the financial statements.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with International Financial Reporting Standards, and for such internal control as management determines is necessary
to enable the preparation of unconsolidated financial statements that are free from material misstatement,
whether due to fraud or error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on these unconsolidated financial statements based on our audit. Except
as provided in paragraph a) below, we conducted our audit in accordance with International Standards on Auditing.
Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance whether the unconsolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks
of material misstatement of the unconsolidated financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of
the unconsolidated financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entities’ internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the unconsolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
MATTERS AFFECTING THE OPINION
Application of IFRIC 18 Transfers of Assets from Customers
The Company has not applied IFRIC 18 Transfers of Assets from Customers, which specifies the accounting for assets
transferred from customers, by which the income from such assets should be recognised immediately upon the
transfer in the statement of comprehensive income rather than deferred over the useful life of the transferred asset.
The Interpretation is in force since 1 July 2009, and the Management Board has decided to apply the Interpretation to
periods subsequent to 1 January 2010. As of the date of publication of these financial statements, the Company has
not quantified the effect of the untimely adoption of the Interpretation on the financial statements. As a result, we
are unable to assess the impact of this matter on the statement of the comprehensive income and of the Company
for the year ended 31 December 2009 and on the shareholder’s equity for the year ended 31 December 2010.
MODIFIED OPINION
In our opinion, except for the effect of the matters discussed in paragraph a) above, the financial statements present
fairly, in all material respects, the financial position of the Company at 31 December 2010, the results of its operations
and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
Deloitte d.o.o.
Branislav Vrtačnik, Certified Auditor
Zagreb, 25 May 2011