A N N U A L R E P O R T 2 0 0 2 - Ramirent

The principal foreign exchange rates used were:
Income statement rate
Balance sheet rate
2002 2001 2002 2001
EUR/RUR 32.35199 26.09035 33.27787 26.87457
EUR/EEK 15.64700 15.64666 15.64700 15.64666
EUR/LVL 0.60491 0.55894 0.61230 0.55630
EUR/LTL 3.45256 3.57169 3.45244 3.52279
EUR/PLN 3.99106 3.64851 4.00048 3.49531
EUR/SEK 9.09433 9.15280
EUR/NOK 7.30810 7.27560
EUR/HUF 237.52969 235.84906
Financial instruments
The Group companies have no derivatives
contracts.
Pension costs
Pension cover is arranged through an external
pension insurance company. Pension insurance
costs are booked as they occur. Pension
insurance costs of foreign subsidiaries are
presented as required by each respective
country’s local legislation. In addition, the
Norwegian subsidiary has liabilities for early
retirement pensions.
Maintenance and repairs
Except for major refurbishment costs, which are
capitalized and depreciated over their period of
impact, maintenance and repair costs are
booked as expenses during the financial year in
which they occur.
Fixed assets
Fixed assets are capitalized at their direct acquisition
cost in the balance sheet, reduced by the
depreciation made according to plan. The
planned depreciation is calculated on the basis
of the economic life expectancies of the fixed
assets either as straight-line depreciation or as a
percentage (reducing balance method).
The depreciation periods for the fixed assets are
as follows:
Rental machinery, equipment and machinery,
itemized
Lifting and loading equipment 8–15 years
Small machines3–8 years
Portable spacial units
10 years
Rental machinery and equipment, non-itemized
Scaffolding 10%
Reducing balance method
Formwork and supporting equipment 10%
Reducing balance method
Other non-itemized 10–33%
Reducing balance method
Goodwill arising from restructuring of the
Group is amortized over 10–20 years depending
on the perceived importance of the restructuring
to Group strategy. The goodwill amortization
period relating to the Bautas/Stavdal acquisition
on September 30, 2002 is defined as 20 years.
The importance of the acquisition and the
Group’s strategic shift to new Scandinavian
markets influenced the length of the amortization
period.
Inventories
Inventories are shown at the lowest of the
weighted average price, the replacement price
or the probable selling price. The direct acquisition
costs are included in the value of the
inventories.
Goodwill
Other long-term expenditure
Buildings and structures
Machinery and equipment
for own use
10–20 years
3–8 years
20 years
3–10 years
Cash in hand and at the bank
Cash in hand and at the bank includes cash and
bank accounts.
26