hse group

6.7 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
86 General disclosure
The provisions of the Companies Act
and of the Slovene Accounting Standards
are directly applied to the disclosure
of items in consolidated financial
statements, except for those items that
may be, in accordance with the respective
standards, accounted for at freely selected
methods. In these cases the
Group has taken into account the provisions
of the Consolidation rules or decisions
taken by the Management Board
of the parent company.
Transactions expressed in foreign currencies
are translated into domestic currency
on the date of their accrual at the
middle exchange rate of the Bank of Slovenia
ruling on the respective date.
The consolidated financial statements
have been prepared in Slovenian tolars
(SIT), rounded off to one thousand units.
Group enterprises, except HTZ that is
liable to account for the tax, but not to
pay it, are subject to taxation under the
Corporate Income Tax Act.
Group enterprises are also subject to
taxation under the VAT Tax, except Karbon.
6.7.1 Consolidated
balance sheet
General
The information about the basis for the
preparation of the consolidated balance
sheet and about special accounting policies,
selected and used in important business
operations and other transactions
of the Group are presented in the
disclosure of individual important assets
and liabilities.
Due to the introduction and application
of the new Slovenian Accounting
Standards (SAS), the consolidated balance
sheets for the year 2002 and for
the year 2001 are not fully comparable.
In accordance with the interpretation 1
to the SAS 24 issued by the Slovenian
Institute of Auditors the data for the previous
accounting period have not been
translated according to the new Slovenian
Accounting Standards in the preparation
of the consolidated balance
sheet, but reasonably recorded in corresponding
items in terms of materiality.
Intangible fixed assets
SIT 3,182,373,000 0.94% of assets
86% of total intangible fixed assets represent
long-term deferred development
costs, which mainly include costs of studies
and projects as well as general
costs of major investments.
Movement of intangible
fixed assets in 2002
in SIT 000
COST OF PURCHASETotal
Balance at the
beginning of the year 5,553,817
Increase 1,086,678
Decrease (225,379)
Revaluation (372,038)
Balance at the
end of the year 6,043,078
ADJUSTMENT FOR VALUE
Balance at the
beginning of the year 2,541,790
Increase 0
Decrease (39,168)
Amortisation 358,083
Amortisation
of revaluation 0
Balance at the
end of the year 2,860,705
Net carrying amount
at the beginning of the year 3,012,027
Net carrying amount
at the end of the year 3,182,373
At the beginning of 2002 the net carrying
amount of intangible fixed assets is
not comparable to the data stated in the
consolidated balance sheet for 2001,
due to the fact that new companies
were included in the consolidation in
2002.
Tangible fixed assets
SIT 284,882,725,000
83.88% of assets
On initial recognition, a tangible fixed
asset is evaluated at cost of purchase.
The cost of purchase includes its purchase
price, import duties and nonrefundable
purchase taxes, as well as
directly attributable costs of bringing the
asset to working condition for its intended
use, particularly the costs of
transport and installation. The cost of
purchase also comprises the interest on
loans for acquisition of a tangible fixed
asset until its bringing to working condition
for use.
Donations and grants for the acquisition
of tangible fixed assets are not deducted
from their cost of purchase. They are included
in long-term provisions and are
utilised in accordance with the depreciation
accounted for.
The difference between the sales value
and carrying amount of the disposed