ANNUAL REPORT 06 - Bosnalijek dd

Bosnalijek d.d.Notes to financial statements for the year ended 31 December 2006(All amounts are expressed in thousands of KM)20. OBLIGATIONS UNDER FINANCE LEASESMINIMUM LEASEPAYMENTSPRESENT VALUE OFMINIMUM LEASE PAYMENTSAmounts payable under finance leases:Within one yearIn the second to fifth year inclusiveLess: future finance chargesPresent value lease obligationsLess: amount due within 12 monthsAmount due for settlement after 12 months2006.493079(18)61(38)232005.3862100(29)71(28)432006.382361-61(38)232005.284371-71(28)43The Company leases 5 vehicles with a carryng amount of KM 103thousand (31 December 2005 – KM 135 thousand). The average term offinance leases entered into is 5 years. The interest rate inherent in theThe fair value of the Company's finance lease obligations approximatestheir carrying amount. The Company’s obligations under finance leasesare secured by the lessor’s charge over the leased assets.leases is fixed at the contract date for all of the lease term and theaverage effective interest rate contracted approximates 8.83% perannum. All leases are on a fixed repayment basis and no arrangementshave been entered into for contingent rental payments. All leaseobligations are denominated in Euro.21. DEFERRED INCOMEDeferred income is comprised of donated equipment, which is amortisedinto income at the same rate as the depreciation expense recognised forthe respective equipment.Balance at the beginning of the yearDonated equipment receivedRelease to income (Note 7)Balance at the end of the year2006.1632(48)1172005.20021(58)163Changes in deferred income can be presented as follows:serving Your health INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT 06 69