2.8 MEUR - Gorenje - Gorenje Group

ANNUAL REPORT 2011
(iv) Site restoration
In accordance with the Company’s published environmental policy and applicable legal requirements, a provision
for site restoration in respect of contaminated land, and the related expense, is recognised when the land
is contaminated.
(v) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Company
from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision
is measured at the present value of the lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract. Before a provision is established, the Company recognises
any impairment loss on the assets associated with that contract.
n) Revenue
(i) Revenue from the sale of products
Revenue from the sale of products in the course of ordinary activities is measured at the fair value of the consideration
received or receivable, net of returns, trade discounts, resale rebates, and volume rebates. Revenue
is recognised when persuasive evidence exists, usually in the form of an executed sales agreement, that the
significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is
probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing
management involvement with the goods, and the amount of revenue can be measured reliably. If it is probable
that discounts will be granted and the amount can be measured reliably, then the discount is recognised
as a reduction of revenue as the sales are recognised.
The timing of the transfer of risks and rewards varies depending on the individual terms of the sales agreement.
For sales of goods, usually transfer occurs when the product is received at the customer’s warehouse; however,
for some international shipments transfer occurs upon loading the goods onto the relevant carrier at the port.
Generally for such products the customer has no right of return.
(ii) Revenue from services rendered
Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of
the transaction at the reporting date. The stage of completion is assessed by reference to surveys of work
performed.
When the services under a single arrangement are rendered in different reporting periods, the consideration is
allocated on a relative fair value basis between the services.
(iii) Commission
When the Company acts in the capacity of an agent rather than as the principal in a transaction, the revenue
recognised is the net amount of commission made by the Company.
(iv) Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over the term of
The Management Board the of the lease. company Lease Gorenje, incentives d.d. granted are recognised as an integral part of the total rental income, over the term
of the lease. Rental income from subleased property is recognised as other income.
o) Government grants
Government grants are recognised initially as deferred income when there is reasonable assurance that they
will be received and the Company will comply with the conditions associated with the grant and are then
recognised in profit or loss as other income on a systematic basis over the useful life of the asset. Grants that
compensate the Company for expenses incurred are recognised in profit or loss as other income on a systematic
basis in the same periods in which the expenses are recognised.
p) Finance income and finance expenses
Finance income comprises interest income on funds invested (including available-for-sale financial assets),
dividend income, gains on the disposal of available-for-sale financial assets, changes in the fair value of financial
assets at fair value through profit or loss, gains on the remeasurement to fair value of any pre-existing
interest in an acquiree, and gains on hedging instruments that are recognised in profit or loss. Interest income
is recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised
in profit or loss on the date that the Company’s right to receive payment is established, which in the case of
quoted securities is the ex-dividend date.
The Management Board of the company Gorenje, d.d. 187