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KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
Impairment of available-for-sale non-listed equity
securities is recognised whether on the basis
of external independent valuations, using the
discounted future cash flow method or on the basis
of an internal model in which appropriateness has
been assessed by an independent qualified expert.
- the method of discounted cash flows was used
- projections were made for minority shareholder
- cash flow projections for the period of 5 years were
prepared
- revenue growth rates range up to 5% per year
- growth of employee costs was 3% per year
- discount rates range up to 11,6% per year
According to valuations performed in 2007 the
impairment of EUR 2,596,286 (2006: EUR
9,633,388) was recognised. The following key
assumptions were used in these valuations:
Held-to-maturity investments were redeemed in
2007 in the amount of EUR 639,758 (2006: EUR
1,209,398).
The effective interest rates on debt securities were as follows:
2007 2006
294
Debt securities:
– held-to-maturity financial assets 5.08% 5.12%
– available-for-sale financial assets 4.36% – 4.96% 4.00%-4.50%