Consolidated financial statement 2011 - Aquafin

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Consolidated financial statement 2011
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Employee benefit provisions
There are two types of pension schemes within the group:
the defined contribution plan and the defined benefit plan.
Liabilities with respect to defined contribution plan are
immediately applied against the profit and loss account.
The periodic premium payment is registered as a period cost.
The debt or possible receivable from the defined benefit
plan is shown in the balance statement. In such schemes,
the amount in the balance statement (the net liability)
matches the cash value of the gross liability, reduced by the
fair value of the fund investments and adjusted for not-taken
pension costs for past employment.
To be able to estimate future liabilities accurately, a specific
actuarial calculation, the projected unit credit method will be
used. For dealing with actuarial profits and losses, a choice
has been made to deduct equity immediately by means of an
equity change overview.
Early retirement schemes are also treated as defined
benefit plans. The group shows a provision that is calculated
in accordance with the project unit credit method.
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Taxes
a. Tax on profits
Current tax receivables and liabilities for the current and
previous periods are valued at the amount that
is expected to be received from or paid to the tax
authorities in Belgium or elsewhere.
In accordance with Article 43 of the management
agreement with the Flemish Region, all of the reasonable
costs incurred by the group in the context of this
agreement will be compensated by the drinking water
companies/the Flemish Region, including all levies
and taxes owed by the group due to the execution of
that agreement.
b. VAT
Revenues, costs and assets are shown after deducting
the value-added tax, except: :
• when the value-added tax on the purchase of assets or
services cannot be recovered from the tax authorities,
in which case the value-added tax will be shown as
part of the cost of the acquisition of the asset or as
part of the cost item;
• for receivables and debts that are accounted for
including the value-added tax.
The net amount of the value-added tax that can be
recovered or that is payable to the tax authorities is
shown as part of the receivables and debts in the
balance statement.
c. Deferred taxes
In view of the specific provisions of the management
agreement, the group does not have any temporary
differences in assets or liabilities that could give cause to
establish a deferred tax debt or receivable.
PRINCIPLES FOR ELEMENTS OF THE PROFIT
AND LOSS ACCOUNT
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Revenues
In accordance with the management agreement, all
reasonable costs of the company are compensated by the
Flemish Region through the drinking water companies.
Revenues are shown if it is probable that the economic
rewards associated with the transaction will flow to the
company and if the amount of the revenues can be measured
in a reliable way. Turnover is shown after deducting the valueadded
taxes and discounts. Revenues from the sale of goods
or the delivery of services are shown when the delivery and
the full transfer of risks and rewards have taken place.
Dividends are shown at the moment that the right of
the shareholder to receive the dividend has been set.