We build business networks and relationships ... - skupina kd group

KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
value of a financial instrument are used. Valuation
techniques include using recent arm’s length market
transactions between knowledgeable, willing parties,
if available, reference to the current fair value of
another instrument that is substantially the same,
and discounted cash flow analysis. The Group has
developed a model for assessing the fair value of
non-listed equity instruments; its appropriateness was
assessed by an independent qualified expert. Using
- The estimated fair value of borrowings not quoted in
an active market is based on discounted cash flows
using current market rates. The aggregate fair value
of quoted debt securities are calculated based on
quoted market prices.
- Current receivables and liabilities are assumed their
carrying value reflects their fair value.
- For a contract containing a discretionary participation
feature the fair value cannot be measured reliably.
this model, the fair values of significant financial
investments in non-listed companies are estimated
once a year on the basis of data available.
- The fair value of loans and deposits represents the
discounted amount of estimated future cash flows
expected to be received. Expected cash flows are
discounted at current market rates to determine fair value.
The following table summarises the carrying amounts
and fair values of those financial assets and liabilities
not presented on the Group’s balance sheet at
their fair value. Bid prices are used to estimate fair
values of assets, whereas offer prices are applied to
liabilities.
Carrying value
Fair value
(in EUR)
2007 2006 2007 2006
Financial assets
Investment securities (held-to-maturity) 7,590,164 6,987,877 7,610,152 7,178,651
Loans and bank deposits 57,751,092 60,299,751 57,751,092 60,299,751
65,341,256 67,287,628 65,361,244 67,478,402
Financial liabilities
Borrowings 88,881,957 42,424,955 88,903,456 42,272,588
Bonds issued 75,368,725 75,324,967 75,052,404 75,463,983
164,250,682 117,749,922 163,955,860 117,736,571
279
6. Reporting by Business Segment and
Geographical Segment
The Group’s main activities i.e. business segments
are the following:
- Property insurance
- Life insurance
- Health insurance
- Financial operations (asset management and other
- Cinematography
- Other (tourism, publishing, etc.).
As at 31 December 2007, the Group operated
in Slovenia and the countries: Bulgaria, Cyprus,
Czech Republic, FBIH, Croatia, Netherlands,
Poland, Slovakia, Romania, Serbia, Montenegro,
Ukraine, USA.
financial operations)