Annual report 2012 - Česká rafinérská, as

ČESKÁ RAFINÉRSKÁ, a.s.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2012
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The Financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in the Czech Republic.
The financial statements have been prepared under the historical cost convention.
Comparable data for the year 2011 were taken from previous audited financial
statements.
3. ACCOUNTING POLICIES
The valuation principles applied by the Company for preparation of the financial
statements for the years 2012 and 2011 are as follows:
a) Intangible fixed assets
Intangible fixed assets are recorded at cost, which includes costs incurred in bringing the
assets to their present location and condition. All research costs are expensed.
Development costs are capitalised as intangible assets and recorded at the lower of costs
or the value of future economic benefits if the value of future economic benefits can be
reasonably estimated. All other development costs are expensed as incurred.
Intangible fixed assets with unit costs exceeding CZK 60 thousand and with a useful life of
over 1 year are amortised applying the straight-line basis over their estimated useful life.
The useful lives of assets were determined as follows:
Years
Research and development 2 – 6
Software 2 – 5
Royalties 3 – 10
Intangible fixed assets costing up to CZK 60 thousand are expensed upon acquisition.
A provision for impairment is established whenever the carrying value of an asset is
greater than its estimated recoverable amount.
Emission rights are presented by the Company under Other intangible fixed assets.
ANNUAL REPORT ČESKÁ RAFINÉRSKÁ, a.s., 2012 37