ELMEC SPORT BULGARIA EOOD

“Elmec Sport Bulgaria” ЕООDReport and Financial Statements for the year ended 31 December 2008____________________________________________________________________1. 2. 5 Devaluation of assetsDevaluation of assetstype 2008 2007inventories devaluation 87 298Total 87 2981. 2. 6. Other expensesOther expensesExpense type 2008 2007Overseas and inland travelling 103 70Entertaining 13Scrap 19Other expenses 37 65Lacks 278 255Total 450 3901. 2. 7. Balance sheet value of sold assetsCost of salestype 2008 2007Cost of sales 9,099 5,924Total 9,099 5,9241. 2. 8 Finance costsFinance coststype 2008 2007Interests expense 12 16loan 9 16lease 3Other 60 50Exchange loss 73 14Total 145 801. 2. 9 TaxThe corporation tax rate is 10%.Deferred tax is calculated in full on all temporary differences under the liability method using theapplicable tax rates.Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be availableagainst which the temporary differences can be utilized.Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current taxassets against current tax liabilities and when the deferred taxes relate to the same fiscal authority.16