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

HEP ANNUAL REPORT 2010
72
CHAPTER 6 - FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE HEP GROUP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2010
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of the Group’s principal accounting policies which have been applied consistently in the current year
and with the prior year, is set out below.
PRESENTATION OF THE FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”)
as published by the International Accounting Standards Board.
The financial statements have been prepared on the historical cost basis, except for certain financial instruments
that are presented at re valued amounts. The financial statements are presented in thousands of Croatian
Kuna (HRK’000), since that is the currency in which the majority of the Group’s transactions are denominated.
The financial statements have been prepared under the going-concern assumption.
BASIS OF ACCOUNTING
The Group maintains its accounting records in the Croatian language, in Croatian kuna and in accordance with Croatian
law and the accounting principles and practices observed by enterprises in Croatia. The accounting records of the
Group’s subsidiaries in Croatia and abroad are maintained in accordance with the requirements of the respective
local jurisdictions.
ADOPTION OF NEW AND REVISED STANDARDS
Standards and Interpretations effective in the current period
The following amendments to the existing standards issued by the International Accounting Standards Board and
interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current
period:
- IFRS 1 (revised) “First-time Adoption of IFRS” (effective for annual periods beginning on or after 1 July
2009),
- IFRS 3 (revised) “Business Combinations” (effective for annual periods beginning on or after 1 July
2009),
- Amendments to IFRS 1 “First-time Adoption of IFRS” - Additional Exemptions for First-time Adopters (effective
for annual periods beginning on or after 1 January 2010),
- Amendments to IFRS 2 “Share-based Payment” – Group cash-settled share-based payment transactions
(effective for annual periods beginning on or after 1 January 2010),
- Amendments to IAS 27 “Consolidated and Separate Financial Statements” (effective for annual periods
beginning on or after 1 July 2009),
- Amendments to IAS 39 “Financial Instruments: Recognition and Measurement” – Eligible hedged items
(effective for annual periods beginning on or after 1 July 2009),
- Amendments to various standards and interpretations “Improvements to IFRSs (2009)” resulting from the
annual improvement project of IFRS published on 16 April 2009 (IFRS 2, IFRS 5, IFRS 8, IAS 1, IAS 7, IAS 17, IAS
18, IAS 36, IAS 38, IAS 39, IFRIC 9 and IFRIC 16) primarily with a view to removing inconsistencies and clarifying
wording, (most amendments are to be applied for annual periods beginning on or after 1 January 2010),
- IFRIC 17 “Distributions of Non-Cash Assets to Owners” (effective for annual periods beginning on or after
1 July 2009),
- IFRIC 18 “Transfers of Assets from Customers” (effective for transfer of assets from customers received on
or after 1 July 2009)
The adoption of these amendments to the existing standards and interpretations has not led to any changes in the
Group’s accounting policies.