Účtovná uzávierka 2004

Notes as at 31 December 2004
e) Financial placement
The Company values its assets and liabilities in line with § 24, using the methods contained in §§ 25–27 of the Act No. 431/2002
and the applicable regulations of the decree of the Ministry of Finance SR No. 22212/2002-92.
Real estate
Real estate covering the obligations arising from technical reserves is valued in line with the decree of the Ministry of Finance SR
No. 380/2002 Coll.
Changes in fair values are shown as a revaluation reserve in equity.
Real estate, not covering technical reserves is evaluated by using purchase prices and in the event that interim value reduction is
established, provisions are created.
Securities
Securities assigned for trading and securities available for sale are initially recorded at cost. Subsequent to initial recognition they
are stated at fair value. During the holding, i.e. from acquisition to sale, their value is continuously increased by:
Notes
87
– interest income – bonds with coupon
– income from coupons, other than interest income, which is premium or discount – in case of debt securities
– changes in fair values
Any foreign exchange difference arising on a security valued at fair value is considered to be part of the value and therefore is not
subject to separate booking.
Securities held to maturity and securities acquired in a primary issue not assigned for trading are valued at amortized cost, using
effective interest rate.
Shares in undertakings where the Company has control or significant influence are valued under the equity method, as per the
decision of the Company. All equity shares are valued under this method.
The Company controls an undertaking when the Company owns more than a 50% equity share or controls more than 50% of
the voting rights in the undertaking.
The Company has significant influence over an undertaking when the company owns more than 20% and less than 50% share