ANNUAL REPORT - HSE

ANNUAL REPORT HSE | FINANCIAL REPORT OF THE HSE GROUP
Net profit or loss represents the unallocated portion
of net profit or loss of the controlling company for the
year and the controlling company’s share of subsidiaries’
net profit or loss.
Revaluation surplus includes the values of hedging
derivatives (futures and interest rate swaps) and the
value of increases in investments in associates accounted
for using the equity method.
Consolidation equity adjustment comprises foreign
exchange differences arising from conversions of accounting
categories used by companies abroad.
Minority interest represents the share of minority
owners in the total equity of subsidiaries.
Provisions and long-term accrued
costs and deferred revenue
Provisions are set aside for obligations that are expected
to arise from obligating past events in a period
of more than a year. If a liability can be reliably measured,
they are carried as recognised costs of provisions.
The amounts of provisions for jubilee benefits and
termination benefits were estimated on the basis of
actuarial calculations. They were created based on an
estimated amount of liabilities for termination and jubilee
benefits discounted to the balance sheet date.
Provisions are derecognised in the books of account
when the events for which they were created occur or
when it is determined that the reasons for their creation
no longer exist. In this case their derecognition
is recorded as operating revenue.
Long-term deferred cost and accrued revenue items
comprise deferred revenue that is expected to arise
in a period of more than a year. They also include the
values of grants for the acquisition of property, plant
and equipment provided to cover depreciation charge
through progressive transfers to operating revenue.
Long-term liabilities
Long-term liabilities arise in connection with the financing
of group companies and can either be financial
or operating.
They refer to the liabilities of group companies which
need to be settled over the period of more than a
year.
Long-term financial liabilities relate to liabilities to lenders
whereas operating liabilities relate to suppliers.
On initial recognition, long-term financial liabilities
are recorded in the amount of cash received and are
subsequently decreased by the amount of repayments
made. They are measured at cost.
Short-term operating liabilities are initially valued on
the basis of amounts indicated in relevant documents,
which evidence the receipt of goods or services.
The portion of long-term liabilities that is due to be
settled within a year of the balance sheet date is recorded
as a short-term liability.
The carrying amount of long-term liabilities equals
their amortised cost.
Short-term liabilities
Short-term liabilities need to be settled within one
year at the latest. The Group records short-term financial
and operating liabilities.
Short-term financial liabilities relate to liabilities to
lenders whereas operating liabilities relate to suppliers.
On initial recognition, short-term financial liabilities
are recorded in the amounts of cash received and are
subsequently decreased on the basis of repayments
made. They are measured at cost.
Long-term operating liabilities are initially valued on
the basis of amounts indicated in relevant documents,
which evidence the receipt of goods or services.
The portion of long-term liabilities that is due to be
settled within a year of the balance sheet date is recorded
as a short-term liability.
The carrying amount of short-term liabilities equals
their amortised cost.
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