ANNUAL REPORT - HSE

A Group-level reconciliation has not been disclosed
because the amount is immaterial.
Inventories are revalued if their carrying amount exceeds
their net realisable value. If this is the case, inventories
are impaired, with the value of the impairment
increasing revaluation operating expenses for
operating current assets.
In the books of account of group companies, shortterm
investments are recognised according to their
settlement date (payment date). After initial recognition,
they are carried at cost.
Group companies carry short-term investments as investments
available for sale.
Receivables
Receivables represent a right to demand from customers
payment for the services provided or goods
delivered and are part of the Group’s assets. Depending
on their due date, receivables can be long-term
(due in more than one year) and short-term (due in
less than one year).
A receivable is recognised as an asset if it is probable
that the future economic benefits attributable to the
asset will flow to the entity and the historical cost of the
asset can be measured reliably. All receivables are initially
recognised at amounts recorded in relevant documents
on the assumption that they will be collected.
In the consolidated balance sheet, advances paid are
recorded under assets for which they were provided.
If receivables are not collected within a reasonable
time or court proceedings are initiated in connection
with the collection, allowances are made and revaluation
operating expenses are increased. The allowances
for receivables are made on an individual basis.
Receivables are written off when all legal remedies
relating to their collection have been used and the receivables
have still not been collected.
The part of long-term receivables due to be settled
within a year of the balance sheet date is recorded as
short-term receivables.
Short-term investments
Short-term investments are part of the Group’s current
assets that generate profit and thus increase finance
income in a period of less than a year.
On initial recognition, they are recorded at their historical
cost plus the costs directly attributable to the
investment.
Cash
Cash of the Group comprises cash on hand, cash in
transaction accounts and deposits redeemable at notice
and held with commercial banks.
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 (expenses) and
short-term accrued revenue.
Short-term deferred costs include the amounts incurred
but not yet charged against the activities of
group companies.
Short-term accrued revenue represents the amounts
that have been included in revenue in the preparation
of the consolidated financial statements but have not
yet been invoiced by group companies.
Equity
Total equity is defined by the amounts invested by
owners and the amounts generated during operations
and belonging to the owners.
Nominal capital is carried in euros. Nominal capital
and capital surplus represent cash contributions and
in-kind contributions made by the owner of the controlling
company.
Other revenue reserves are set aside on the basis of
decisions adopted by the Supervisory Board and the
General Meeting of the controlling company.
ANNUAL REPORT HSE | FINANCIAL REPORT OF THE HSE GROUP
141