ANNUAL REPORT - HSE

Revenue is recognised when it can be reasonably expected
it will result in receipts, unless such receipts
arose when the revenue was recorded.
them. Interest is recognised in proportion to the past
year and based on the outstanding amount of the principal
balance and an agreed-upon interest rate.
Revenue from the sale of services and merchandise
is measured at selling prices indicated in invoices and
other documents.
Revaluation operating revenue is revenue arising from
the disposal of property, plant and equipment, revenue
from the reversal of provisions, and revenue from the
reversed impairment of investments. It is recognised
on the basis of issued invoices or other relevant documents.
Finance income arises in connection with long-term
and short-term investments and in connection with
receivables and short-term liabilities. Finance income
is recognised upon the settlement of accounts irrespective
of receipts, unless there is reasonable doubt
as to their amount, maturity and recoverability. Interest
is accounted for in proportion to the previous year,
outstanding amount of the principal and the agreedupon
interest rate.
Other expenses are comprised of extraordinary items.
They are disclosed in actual amounts.
Reporting by business
and geographical segments
The company divides its net sales revenue by two geographical
segments, i.e. domestic market and foreign
market. Foreign markets and profits or losses on
those markets have not been presented in more detail
because the company estimates that the disclosure
of such information might be detrimental to the company.
As far as geographical segments are concerned,
the company’s assets and liabilities represent an indivisible
unit.
Because operating conditions and risks of individual
groups of products are similar, the company does not
break down operations by business segment.
Other revenue is comprised of extraordinary items.
They are disclosed in actual amounts.
Expenses
Expenses are recognised if decreases in economic
benefits during an accounting period are associated
with decreases in assets or increases in liabilities and
such decreases can be reliably measured.
Operating expenses are recognised upon the purchase
of merchandise or the completion of services. Amortisation
and depreciation are accounted for at agreedupon
rates based on the estimated use of intangible
assets and property, plant and equipment.
Revaluation operating expenses comprise the excess
of the carrying amount over the selling price of property,
plant and equipment, write-off of property, plant
and equipment, and write-off of doubtful receivables.
Finance expenses arise in connection with liabilities,
intangible assets and short-term receivables. They
are recognised when the statements of account are
prepared, regardless of the payments associated with
Taxation
The company is liable to pay tax under the Value Added
Tax Act, the Excise Duty Act, and the Corporate Income
Tax Act. The branch offices in the Czech Republic and
in Slovakia are liable to pay corporate income tax and
value added tax.
Deferred taxes
Deferred taxes are intended for covering temporary
differences between the carrying amount and tax values
of assets and liabilities. Deferred tax assets represent
the assessed amount of corporate income tax
and deductible temporary differences, which results
in lower tax payable in future periods.
ANNUAL REPORT HSE | FINANCIAL REPORT OF THE COMPANY HSE
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