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2. Accounting policiesA summary of the Group’s principal accounting policieswhich have been applied consistently in the current yearand with the prior year, is set out below.Presentation of the financial statementsThese consolidated financial statements are preparedon the consistent presentation and classification basis.When the presentation or classification of items in theconsolidated financial statements is amended, comparativeamounts are reclassified unless the reclassificationis impracticable.Basis of accountingThe Company maintains its accounting records in theCroatian language, in Croatian kuna and in accordance withCroatian law and the accounting principles and practicesobserved by enterprises in Croatia. The accounting recordsof the Company’s subsidiaries in Croatia and abroad aremaintained in accordance with the requirements of therespective local jurisdictions.The Company’s and Group’s financial statements areprepared under the historical cost convention, modifiedby the revaluation of certain assets and liabilities underconditions of hyperinflation in the period to 1993, andin accordance with International Financial ReportingStandards as published by the International AccountingStandards Board, and the Croatian law.Adoption of new and revisedInternational Financial ReportingStandardsStandards and Interpretation effective inthe current periodIn the current year, the Company and the Group haveadopted all of the new and revised Standards andInterpretations issued by the International AccountingStandards Board (the IASB) and the InternationalFinancial Reporting Interpretations Committee (IFRIC) ofthe IASB that are relevant to its operations and effectivefor accounting periods beginning on 1 January 2007:IFRS 7 Financial Instruments: Disclosures (effective date:annual periods beginning on or after 1 January 2007) andthe consequential amendments to IAS 1 Presentation ofFinancial StatementsFour Interpretations issued by the International FinancialReporting Interpretations Committee are effective for thecurrent period:IFRIC Interpretation 7 Applying the Restatement Approachunder IAS 29 Financial Reporting in HyperinflationaryEconomies (effective date: annual periods beginning onor after 1 March 2006);IFRIC Interpretation 8 Scope of IFRS 2 (effective date:annual periods beginning on or after 1 May 2006);IFRIC Interpretation 9 Reassessment of EmbeddedDerivatives (effective date: annual periods beginning onor after 1 June 2006);IFRIC Interpretation 10 Interim Financial Reporting andImpairment (effective date: annual periods beginning onor after 1 November 2006).The adoption of these Interpretations has not led to anychanges in the INA`s Group accounting policies.Standards and Interpretations in issue not yet adoptedAt the date of authorisation of these financial statements,the following Standards and Interpretations were in issuebut not yet effective:IAS 23 Borrowing Costs, the revised sections (borrowingcosts for assets that take a substantial period to get readyfor use, the capitalisation of which begins on or after1 January 2009)IFRS 8 Operating segments (effective date: annual periodsbeginning on or after 1 January 2009)IFRIC 13 Customer Loyalty Programmes (effective date:annual periods beginning on or after 1 January 2008).94 Financial report