Annual Report 2007 - Severstal

Financial statements
OAO Severstal and subsidiaries
Consolidated financial statements
for the year ended December 31, 2007
Contents
Page
Independent Auditors’ Report 71
Consolidated income statement 72
Consolidated balance sheet 73
Consolidated statement of cash flows 74
Consolidated statement of changes in equity 75
Notes to the consolidated financial statements 76-116
1 Operations 76
2 Presentation of the consolidated financial statements 76
3 Summary of the principal accounting policies 78
4 Sales 83
5 Staff costs 83
6 Net income from securities operations 84
7 Net other non-operating expenses 84
8 Financing 84
9 Taxation 84
10 Cash and cash equivalents 86
11 Short-term bank deposits 86
12 Short-term financial investments 86
13 Trade accounts receivable 87
14 Related party balances 87
15 Related party transactions 88
16 Inventories 88
17 Other current assets 88
18 Intangible assets 89
19 Property, plant and equipment 90
20 Investment in associates and joint ventures 91
21 Long-term financial investments 92
22 Bank customer accounts 92
23 Debt finance 93
24 Other current liabilities 93
25 Retirement benefit liability 94
26 Other non-current liabilities 96
27 Share capital 97
28 Subsidiaries, associates and joint ventures 98
29 Discontinued operations and assets held for sale 103
30 Subsequent events 104
31 Segment information 105
32 Commitments and contingencies 111
33 Financial instruments 111
70 Severstal Annual Report 2007