Annual Report 2010 - Savatech

ANNUAL REPORT 2010 ∂ FINANCIAL REPORT2.Notes tothe financialstatements2.1.Basis for drawingthe financial statements2.1.1.STATEMENT OF COMPLIANCEThe financial statements have been prepared inaccordance with Slovene Accounting Standards2006, which had been issued by the Slovene Instituteof Auditors.The company management approved the financialstatements on 28. 2. 2011.2.1.2FUNCTIONAL CURRENCYThe financial statements are presented in the eurocurrency, which as of 1 January 2007 has been thefunctional currency of the company. All financialinformation in this report is presented in euro,rounded to thousand units. Due to rounding minordifferences can appear at summing up.2.1.3CHANGES IN ACCOUNTING POLICIESIn 2010, the accounting policies of the company didnot change.2.1.4FOREIGN CURRENCY TRANSACTIONSTransactions in foreign currencies are translated to thefunctional currency at the reference exchange rate ofthe European Central Bank ruling at the transactiondate.Monetary assets and liabilities denominated in foreigncurrencies at the balance sheet date are translated tothe functional currency at the reference exchangerate of the European Central Bank ruling at last dayof the accounting period. Foreign exchange gains/losses present differences between the repaymentvalue in functional currency at the beginning of theperiod adjusted by the amount of effective interestand payments during the period and the repaymentvalue in foreign currency calculated at the referenceexchange rate of ECB at the period end.Non-monetary assets and liabilities denominatedin foreign currencies that are stated at original fairvalue in foreign currency are translated to functionalcurrency at the reference exchange rate of theEuropean Central Bank ruling at the transaction date.Foreign exchange losses/gains are recognised in theincome statement2.2.Significant accounting policies2.2.1INTANGIBLE ASSETSThe company uses the cost value model for evaluatingintangible assets. Intangible fixed assets have theiruseful lives defined. They are measured at cost lessdepreciation adjustment.Cost also includes import and non-refundablepurchasing taxes, as well as interest from loans foracquisition of an intangible asset until it is put inservice for use.2.2.2TANGIBLE FIXED ASSETSCompany uses cost model for evaluation of tangiblefixed assets. Tangible fixed assets are measured atcost less depreciation adjustment and accumulatedloss due to impairment.At initial recognition a tangible fixed asset is valued atcost. The cost includes its purchase expense, importand non-refundable purchasing taxes and expenseswhich can be attributed directly to its placement inservice for the intended use, especially expenses forits transport and installation and estimated cost of itsdismantling, removal and restoration.57