2.8 MEUR - Gorenje - Gorenje Group

ANNUAL REPORT 2011
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised
in prior periods are assessed at each reporting date for any indications that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does
not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
k) Non-current assets held for sale or distribution
Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily
through sale or distribution rather than through continuing use, are classified as held for sale or distribution.
Immediately before classification as held for sale or distribution, the assets, or components of a disposal
group, are remeasured in accordance with the Company’s accounting policies. Thereafter generally the assets,
or disposal group, are measured at the lower of their carrying amount and fair value less costs to sell. Any
impairment loss on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities
on pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee
benefit assets, investment property, which continue to be measured in accordance with the Company’s accounting
policies. Impairment losses on initial classification as held for sale or distribution and subsequent
gains and losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any
cumulative impairment loss.
Once classified as held for sale or distribution, intangible assets and property, plant and equipment are not
amortised or depreciated. In addition, equity accounting of equity-accounted investees ceases once classified
as held for sale or distribution.
l) Employee benefits
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided.
m) Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised as finance expenses.
(i) Warranties for products and services
A provision for warranties is recognised when the underlying products or services are sold. The provision is
based on historical warranty data and a weighting of all possible outcomes against their associated probabilities.
The Management Board (ii) of the Provisions company Gorenje, for retirement d.d. benefits and jubilee premiums
In accordance with the statutory requirements, the collective agreement, and the internal regulations, the
Company is liable to pay jubilee premiums and retirement benefits to its employees. For these obligations,
long-term provisions are created. Other retirement obligations do not exist.
Provisions are created by discounting, at the reporting date, the estimated future payments of retirement
benefits and jubilee premiums. The obligation is calculated separately for each employee by estimating the
costs of retirement benefits and the costs of all expected jubilee premiums until retirement. The selected annual
discount rate is 5.10%, which is the rate of return on long-term entrepreneurial bonds in euro area. The
calculation has been made by a certified actuary using the projected unit method.
(iii) Restructuring
A provision for restructuring is recognised when the Company has approved a detailed and formal restructuring
plan, and the restructuring either has commenced or has been announced publicly. Future operating
expense is not provided for.
The Management Board of the company Gorenje, d.d. 186