Annual report 2012 - Česká rafinérská, as

ČESKÁ RAFINÉRSKÁ, a.s.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2012
3. ACCOUNTING POLICIES (continued)
h) Liabilities
Long-term liabilities and current liabilities and loans are recorded at their nominal values.
Any portion of a long-term loan due within one year of the balance sheet date is recorded
as a short-term loan.
i) Financial leases
The Company accounts for leased assets by expensing the lease payments and
capitalising the residual value of those assets at the time of the contract expiration and
exercising of the purchase option. Lease payments paid in advance are recorded as
prepaid expenses and amortised over the lease term.
Amounts payable in future periods but not yet due are disclosed in the notes but not
recognised in the balance sheet.
j) Provisions
Provisions are recognised when the Company has a present obligation, it is probable that
an outflow of resources will be required to settle the obligation, and a reliable estimate of
the amount can be made. The Company recognises tax deductible provisions relating to
future repairs of property, plant and equipment.
k) Foreign currency translation
Transactions denominated in a foreign currency are translated and recorded at the
Czech National Bank rate of exchange ruling on the date of the transaction.
All monetary assets and liabilities denominated in foreign currencies have been translated
at the year-end exchange rate published by the Czech National Bank.
All foreign exchange gains and losses are recognised in the profit and loss account.
l) Revenues and expenses recognition
Revenues and expenses are recognised on an accrual basis.
A processing fee is charged to individual Processors based on the Processing
Agreement.
ANNUAL REPORT ČESKÁ RAFINÉRSKÁ, a.s., 2012 41