Annual report 2005 - Sava dd

| notes to the consolidated financial statements in accordance with IFRS |
1 7 3 |
23. Provisions
Provisions due to relief in payment of social security
contributions are formed in accordance with the Law on
Employment Rehabilitation and Disabled Persons
Employment. They are used for covering various
expenses as set out in the quoted law, particularly to
cover depreciation in plant, property and equipment in
the disablement company.
(SIT in thousands)
2004 Increases Decreases 2005
Provisions for liabilities to employees 1,460,500 96,563 -10,667 1,546,396
Provisions for law suits and other claims 216,401 31,583 -44,371 203,613
Warranties 56,981 0 -3,144 53,837
Others 13,205 8,650 -1,392 20,463
Total 1,747,087 136,796 -59,575 1,824,309
Provisions for liabilities to employees include liabilities
for retirement pay and employee jubilee benefits in the
amount as determined by the actuary calculation.
24. Government grants
Provisions for law suits are formed after consulting
lawyers who estimated the outcome of law suits filed
and other claims that relate to the denationalisation
procedure.
(SIT in thousands)
2004 Increases Decreases 2005
Provisions due to relief in social security payment 441,659 87,075 -77,632 451,102
Funds by EU and other funds 311,633 1,358,664 -66,837 1,603,460
Total 753,292 1,445,739 -144,469 2,054,562
25. Deferred tax liability
Deferred tax liability relates to the following items:
Funds obtained in the Pannonian Spas companies from
the structural funds were utilised for renovation of
tourist facilities such as the construction of a 5* hotel in
Moravske Toplice, renovation of Hotel Radin in
Radenci, construction of apartments in Lendava and a
swimming pool complex in Ptuj.
(SIT in thousands)
2005 2004
Liabilities of foreign subsidiaries 18,880 17,763
Deferred tax assets according to Slovene Accounting Standards -39,275 0
Revaluation of securities to fair value 2,186,984 3,402,121
Forming non-current provisions for retirement pay and employee jubilee benefits -381,888 -361,017
Total 1,784,701 3,058,867