Å kodaAuto ANNUAL REPORT 2006 - Skoda Auto

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2006
Company information
Foundation and company enterprises
ŠKODA AUTO a.s. was established as a legal entity on 20 November 1990. The Company’s principal business activities are the
development, production and sale of vehicles and related accessories.
Registered office
ŠKODA AUTO a.s.
Tř. Václava Klementa 869
293 60 Mladá Boleslav
Czech Republic
IČ: 00177041
www address: www.skoda-auto.cz
The Company is registered in the Commercial Register maintained with the Municipal Court in Prague, Section B, Inset 332, with File
No. Rg. B 332.
Organisational structure of the company is divided into the following main areas:
– Chairman of the Board’s Department;
– Technical development;
– Production and logistic;
– Sale and marketing;
– Commercial affairs; and
– Human resource management.
The Company has its main production plant in Mladá Boleslav and two other production plants in Vrchlabí and Kvasiny.
1. Summary of significant accounting policies and principles
1.1 Summary statement
The consolidated financial statements of ŠKODA AUTO a.s. (“the Company”), its subsidiaries and associates (together “the Group”) for the
year ended 31 December 2006 have been prepared in accordance with International Financial Reporting Standards as adopted by the
European Union (“IFRS”) as at 31 December 2006.
All International Financial Reporting Standards issued by the IASB and effective at the time of preparing these consolidated financial
statements have been adopted by the European Union through the endorsement procedure established by the European Commission,
with the exception of the International Accounting Standard IAS 39 “Financial Instruments: Recognition and Measurement”. Following the
Accounting Regulatory Committee decision of October 2004, the Commission adopted the Regulation 2086/2004 requiring the use of IAS 39,
minus certain provisions on portfolio hedging of core deposits, by all listed companies from 1 January 2005. As of 31 December 2006 the
Council of the European Union has not endorsed following standards and interpretations: IFRS 8, IFRIC 10, IFRIC 11 and IFRIC 12.
The Company as an issuer of listed bonds is obliged under paragraph 19 (9) of Act No.563/1991 on Accounting to prepare consolidated
financial statements and annual report in accordance with IFRS.
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