Annual Report 2011 - T-Hrvatski Telekom

90
Consolidated financial statements
Where the effect of the time value of money is
material, the amount of a provision is the present
value of the expenditures expected to be required to
settle the obligation. When discounting is used, the
increase in provision reflecting the passage of time is
recognized as interest expense.
Provisions for termination benefits are recognized when
the Group is demonstrably committed to a termination
of employment contracts, that is when the Group has
a detailed formal plan for the termination which is
without realistic possibility of withdrawal. Provisions for
termination benefits are computed based on amounts
paid or expected to be paid in redundancy programs.
s) Contingencies
Contingent liabilities are not recognized in the
financial statements. They are disclosed unless the
possibility of an outflow of resources embodying
economic benefits is remote.
A contingent asset is not recognized in the financial
statements but is disclosed when an inflow of
economic benefits is probable.
t) Share-based payments
The cost of cash-settled transactions is measured
initially at fair value at the grant date using a binomial
model, further details of which are given in Note 32.
This fair value is expensed over the period until the
vesting date with recognition of a corresponding
liability. The liability is remeasured to fair value at
each statement of financial position date up to and
including the settlement date with changes in fair
value recognized in the statement of comprehensive
income.
u) Events after reporting period
Post-year-end events that provide additional
information about the Group’s position at the
statement of financial position date (adjusting events)
are reflected in the financial statements. Post-yearend
events that are not adjusting events are disclosed
in the notes when material.
v) Trade payables
Trade payables are obligations to pay for goods or
services that have been acquired in the ordinary
course of business from suppliers. Accounts payable
are classified as current liabilities if payment is due
within one year or less. If not, they are presented as
non-current liabilities.
w) Dividend distribution
Dividend distribution to the Group’s shareholders
is recognized as a liability in the Group’s financial
statements in the period in which the dividends are
approved by the Group’s shareholders.
x) Earnings per share
Earnings per share are calculated by dividing the
profit attributable to equity holders of the Group by
the weighted average number of ordinary shares
in issue during the year excluding ordinary shares
purchased by the Group and held as treasury shares.
y) Reclassifications
In order to reconcile the presentation of comparable
period data with data presented in 2011, following
positions in the financial statements for the year
ended 31 December 2010 were reclassified:
· Statement of financial position:
Position
Trade and other receivables
Trade and other payables
Other non-current receivables
deferred income tax assets
HRK millions
(56)
(56)
(7)
7