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

HEP ANNUAL REPORT 2010
62
CHAPTER 6 - FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
(CONTINUED)
B) IMPAIRMENT ALLOWANCE ON RECEIVABLES
The auditor’s opinion on the consolidated financial statements for the year ended 31 December 2009 was modified
in respect of the provision for bad and doubtful receivables. During 2010, the Group recognised a provision for
those receivables in the statement of comprehensive income. As at 31 December 2009, a provision for doubtful
receivables of approximately HRK 60 million and the related taxation effect of approximately HRK 12 million were
not recorded. As a result, the result for the year ended 31 December 2009 and shareholder’s equity at 31 December
2009 were overstated by approximately HRK 48 million and the result for the year ended 31 December 2010 has
been understated by the same amount.
C) APPLICATION OF IFRIC 18 TRANSFERS OF ASSETS FROM CUSTOMERS
The Group 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 Group has
not quantified the effect of 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 of the Group for the year
ended 31 December 2009 and on 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 b) above, and the potential effects of the
matters discussed in paragraphs a) and c) above, the consolidated financial statements present fairly, in all material
respects, the financial position of the Group 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