ANNUAL REPORT - HSE

ANNUAL REPORT HSE | FINANCIAL REPORT OF THE COMPANY HSE
An item of intangible fixed assets is initially carried at
cost. The cost also includes import duties and nonrefundable
purchase taxes. The cost does not include
interest incurred prior to the origination of an intangible
asset.
After recognition, intangible assets are measured using
the cost model.
Their value is subsequently lowered by the amount of
amortisation recorded in the accumulated amortisation
account. In the balance sheet, intangible assets
are recorded at the carrying amount, i.e. as the difference
between the cost and accumulated amortisation.
An item of intangible assets is amortised individually
using the straight-line amortisation method. Amortisation
begins when an intangible asset is available for
use. The amortisation rates applied to individual types
of intangible assets are based on their envisaged useful
lives.
Property, plant and equipment
Property, plant and equipment are part of long-term
assets owned by the company and used for the performance
of its registered activities.
An item of property, plant and equipment is initially
recognised at cost, which comprises its purchase
price, import duties and non-refundable purchase
taxes, as well as directly attributable costs of bringing
the asset to working condition for its intended use.
The cost does not include the borrowing costs related
to the acquisition of an item of property, plant and
equipment to bring the asset to its working condition.
The cost does not include costs incurred upon the dismantling
or removing of the items of property, plant
and equipment.
The spare parts of higher value are recorded as property,
plant and equipment and depreciated over the
useful life of the related asset.
Following recognition, the items of property, plant and
equipment are measured using the cost model.
In the bookkeeping records the cost and accumulated
depreciation of items of property, plant and equipment
are recorded separately, whereas in the balance
sheet they are recorded at carrying amount, i.e. as a
difference between the cost and accumulated depreciation.
Subsequent expenditure on an item of property, plant
and equipment increases its cost when it increases
its future economic benefits in excess of the originally
assessed future economic benefits.
Recognition of an item of property, plant and equipment
in the bookkeeping records and the balance
sheet is reversed if an asset is disposed of. The difference
between the net selling price and the carrying
amount of a disposed of item of property, plant and
equipment is recorded as revaluation operating revenue
or expense.
The depreciation of property, plant and equipment
items begins on the first day of the month following
the month in which an item becomes available for its
intended use. Depreciation is accounted for individually
on a straight-line basis. The depreciation rates
applied to the individual types of property, plant and
equipment are based on their envisaged useful lives.
Investments
Investments are considered as the company's assets,
the return on which is used to increase the company's
finance income. Upon initial recognition, investments
are recorded at historical cost plus the costs attributable
directly to the transaction (except for investments
measured at fair value through profit and loss).
In the company's books of account, investments are
recognised based on their settlement date (payment
date).
After initial recognition, investments are carried at
cost in the company’s financial statements (which
also includes investments in subsidiaries and associates)
and are recorded as available-for-sale financial
assets. Because their fair value cannot be determined
(this is not the case with derivatives), they are not revalued
and, consequently, do not affect revaluation
surplus. Any indications of their impairment are determined
on an annual basis.
Based on the envisaged settlement or the reason for
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