ANNUAL REPORT - HSE

holding an investment, investments are recorded as
long-term or current assets in the balance sheet.
Inventories
Inventories, being part of the company's current assets,
are initially recognised at cost, which comprises
their purchase price, import duties and other nonrefundable
purchase taxes, as well as direct costs of
purchasing. The purchase price is decreased by the
discounts obtained.
The carrying amount of an item of cash equals its initial
nominal value, which can change due to changes
in foreign exchange rates if cash is denominated in
foreign currencies.
Short-term accrued
revenue and deferred costs
Short-term accrued revenue and deferred cost items
comprise short-term deferred costs and short-term
accrued revenue.
If the prices of the items that are purchased anew
in the accounting period differ from the prices of inventory
items of the same class, the first-in first-out
(FIFO) method is applied to decrease the quantities of
inventories during the year.
Receivables
The company’s assets include receivables as the rights
arising from property and other legal relationships to
demand the settlement of a debt or delivery of items or
services from a specific person. All receivables are initially
recognised at amounts recorded in relevant documents
on the assumption that they will be collected.
In the balance sheet, receivables are disclosed in their
net amounts, meaning they are reduced by any allowances
for disputed and doubtful receivables. The allowances
for receivables are made on an individual
basis. If receivables are not collected in a certain period,
they are considered doubtful. If legal proceedings
have been initiated in relation to them, they are
considered disputed.
Receivables of smaller values are written off based on
a management's decision if it is determined that the
costs of collection of such overdue receivables exceed
the amount of the receivables, making a further collection
economically unviable.
Depending on their maturity, receivables are carried
as long-term or current assets in the balance sheet.
Cash
Cash represents deposit money, i.e. cash in bank accounts
that can be used for payments. It comprises
cash in accounts and cash available at notice.
Short-term deferred costs include amounts incurred
but not yet charged against the company's profit or
loss.
Short-term accrued revenue represents amounts that
have been included in profit or loss but have not yet
been charged.
Equity
Total equity is defined by the amounts invested by
owners and the amounts generated during operation
and belonging to the owners.
Nominal capital is carried in the national currency.
Nominal capital and capital surplus represent owner’s
cash contributions and contributions in kind.
Other revenue reserves are set aside on the basis of
decisions adopted by the Supervisory Board and the
General Meeting.
Net profit or loss represents the undistributed portion
of the company's net profit or loss for the current
year.
Revaluation surplus includes the value of hedging derivatives.
Provisions and long-term accrued
costs and deferred revenue
Provisions are created for obligations that are expected
to arise from obligating past events in the coming
periods and the value of which is based on the estimated
present value of expenses that are expected to
be required to settle such obligations. The amount of
provisions for jubilee benefits and termination ben-
ANNUAL REPORT HSE | FINANCIAL REPORT OF THE COMPANY HSE
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