Annual report 2005 - Sava dd

a n n u a l r e p o r t | 2 0 0 5
1 9 6 |
Segment reporting
Sava d.d. has not defined either business or geographical
segments.
Exchange rate and conversion method
in domestic currency
All of the items shown in the accounts books and
expressed in foreign currency are converted to the tolar
value at the medium exchange rate of the Bank of
Slovenia as valid on the last day of the accounting
period.
Intangible long-term fixed assets
Intangible long-term fixed assets include investments in
the acquired long-term rights on industrial property.
An intangible long-term fixed asset is initially
recognised at cost. Cost includes also the import and
non-refundable purchasing taxes. Cost does not include
the interests accrued by the appearance of an intangible
long-term asset.
Due to its increase in value the intangible long-term
fixed assets are not revalued. The mentioned method
applies also to intangible fixed assets that are purchased
abroad.
If the book value exceeds the substitutable value, the
value in intangible fixed assets will impair. The
substitutable value is determined on the basis of revenue
and expenses estimation, which arise from further use of
the assets considering thereby a suitable discount rate in
future cash flows.
Tangible fixed assets
At initial recognition a tangible fixed assets is valued at
cost. The cost includes its purchase expense, import and
non-refundable purchasing taxes and expenses which
can be attributed directly to its putting in service for the
intended use, especially expenses for its transport and
installation.
Costs do not increase the interests on loans for acquiring
a tangible fixed asset until it is put in service for the use.
The cost of a tangible fixed asset, which is constructed
or manufactured in the company, comprises expenses
that are caused by its construction or manufacturing and
indirect expenses for its construction or manufacturing
that can be attributed to it.
Due to the increase in value the tangible fixed assets are
not revalued; the effects of the impairment are shown in
operating expenses from revaluation.
The difference between the net sales value and the book
value of a disposed fixed asset is transferred under the
operating revenues from revaluation, if the former is
higher than the latter and under the operating expenses
from revaluation, if the latter is higher than the former,
respectively.
Expenses that arise later in relation to a tangible fixed
asset, increase its cost value, if they increase its future
benefits in comparison with the ones originally
estimated. The expenses that assure the prolongation of
serviceability period of the tangible fixed asset first
decrease the depreciation adjustment of its value
calculated by then.
Repairs of or maintaining the tangible fixed assets are
intended for renewing or preserving the future economic
benefits expected on the basis of the originally estimated
level of asset efficiency. They are recognised as
expenses upon their appearance.
Depreciation
The value of a tangible fixed asset and intangible fixed
asset that is not written off is decreased through
depreciation.
The tangible fixed asset starts to be depreciated on the
first day of the next month after beginning of use and
performing the activity, for which it is intended,
respectively.
The intangible fixed asset starts to be depreciated when
it is available for use.
The decrease in value of depreciable assets due to an
impairment are not depreciation costs but operating
expense from revaluation of depreciable assets, except if
at its precedent increase in value the equity revaluation
adjustment was enhanced. In such a case it should be
used before it increases the operating expenses from
revaluation of these assets.