Annual report 2005 - Sava dd

| notes to the consolidated financial statements in accordance with IFRS |
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32. Events after the balance sheet date
The events that occurred after the balance sheet date and
are important for the company are described in chapter
4.2 in detail and are as follows:
• The Supervisory Board adopted a resolution to
restructure the Trade division by selling the existing
companies Sava Trade d.d. and MG Market d.o.o. and
acquire a significant stake in the company Merkur.
The information about Trade is disclosed in item
28.2.2 that contains information by segment and
demonstrates the influence of excluding the Trade
division from the Sava Group.
• By an increase in the share capital in the company
Merkur and additional purchases of shares Sava d.d.
has implemented an important part of the planned
strategic restructuring of its Trade division.
Among those events there were none which would
require any revisions in the consolidated financial
statements.
33. Key sources of estimation
uncertainty
Non-current provisions are formed for retirement pay
and employee jubilee benefits in accordance with the
law, collective agreement and internal regulations. The
amount was establised on the basis of an actuary
calculation which used a discounted rate of 2.75 per cent
annually. In the case of a change in the law or interest
rate the amount of required provisions for this purpose
could change.
The fair value of investment property cannot be
ascertained on the basis of future cash flows as the
contracts about the financial lease have been concluded
for the period of one year maximum. As a fair value the
book value of investment property is used. The Board
estimates that there is no significant difference between
the fair and book value, which mainly originates from
cost value of real estate that were built in 2003anew.
34. Explanation of transition to IFRSs
The accounting principles as explained in chapter 28.2.
have been applied in the preparation of both the
consolidated financial statements at 31 December 2005
and the comparative figures for the year 2004, as well as
the opening balance sheet compiled in accordance with
IFRSs at 1 January 2004.
In preparing the opening balance sheet according to
IFRSs the financial statements that in previous years had
been prepared according to Slovene Accounting
Standards were adjusted so as to consider IFRSs. The
tables below show the adjustment effects on the
financial position, financial performance and cash flows
of the Sava Group.