DARS_porocilo 2007 ANG.indd

Provisions and long-term accrued costs and deferred revenue
Provisions are formed by an entity for its present obligations that arise from obligating past events and
are expected to be settled in a period that cannot be defined with certainty, but a reliable estimate can be
made of the amount of obligations. Long-term provisions are set up for accrued costs or expenses and are
decreased by the amounts of costs or expenses for which they were formed in accordance with the plan.
Long-term accrued costs and deferred revenue comprise deferred revenue expected to cover estimated
expenses in a period of more than one year.
In accordance with SAS 2006, the Company set up long-term provisions for termination benefits upon
retirement and jubilee benefits based on actuarial calculations. These were made as at 31 December
2007 for each and every employee, taking into account the costs of termination benefits upon retirement
under their employment contracts, as well as the costs of all jubilee benefits that an employee would
receive for his/her period of service until retirement.
In 2006, the Company joined a pension scheme for collective supplementary pension insurance. In
accordance with an agreement concluded with trade unions, all the Company’s employees were entitled
to join this scheme, except those being of retirement age on 31 December 2006, i.e. 50 years (women)
and 55 years (men). The employer shall pay to these employees a lump sum equal to the interest-free
premiums it would have to pay on their behalf had they been included in the pension scheme. For this
purpose, the Company also set up long-term provisions.
Long-term provisions for long-term accrued costs are also set up with regard to the possible unfavourable
outcome of lawsuits related to motorway operation and maintenance, as well as labour lawsuits.
In 2005, 2006 and 2007, the Company set up long-term provisions for long-term accrued costs related to
employment relationships that will arise upon the introduction of the new satellite toll system. Such a toll
system, under which motorway users pay a toll based on the number of kilometres driven, is — pursuant
to a decision adopted by the Government at its 51st session of 22 November 2001 — the ultimate vision
and objective of the Slovene motorway system. The deadline for the implementation of the new satellite
toll system is August 2009 for freight traffic and December 2010 for other vehicles.
The Company has assessed that, as a consequence of the changed toll system, some 300 employees
will become redundant. Based on the Company’s current needs, some of them will be retrained for other
professions, primarily in the area of road supervision. Sixteen employees will have the possibility of
purchasing additional years of service. The Company has thus accrued one quarter of such costs in the
2007 costs and has accordingly set up long-term provisions.
The Company has assessed that an estimated 100 employees will receive severance pay. One quarter of
such costs has therefore been accrued for this purpose in the 2007 costs, and long-term provisions have
therefore been set up accordingly. The remaining quarter of estimated costs arising from employment
relations will gradually be charged against the Company’s operating results in 2008.
Long-term accrued costs and deferred revenue comprise long-term deferred revenue in the amount cofinanced
by users of the ETC (electronic toll collection) system. This co-financing relates to long-term
provisions for warranties granted on the sale of electronic tags since 2004. At the end of each accounting
period, long-term accrued costs and deferred revenue are restated to the present value of expenses
required to settle the liability. Up to 31 December 2003, long-term provisions were included in the balance
sheet of state-owned assets and liabilities under management.
The item of long-term accrued costs and deferred revenue includes long-term deferred revenue from
earmarked grants received by the Company for the acquisition of assets. They are intended to cover
depreciation expense of such assets and are used by being transferred to operating revenue.
59 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT