Annual report 2005 - Sava dd

| notes to the financial statements of the company Sava d.d. in accordance with SAS |
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The depreciation rates are based on the service life of the assets and amount to:
Financial investments
Long-term investments
A long-term investment in capital, proprietary securities
of other companies or debtor’s securities of other
companies or the state are initially recognised at the cost
of purchase, which equals either the paid sum of money
or its equivalents, or the fair value of other substitutions
for a purchase invested by the investor on the exchange
day increased by costs that can be attributed directly to
the investment.
Long-term financial investments in capital of
subsidiaries and associates are valued so as to be
annually increased by that share of the net profit of
subsidiaries or associates, which belongs to the holding
company. Recording shares in profit of associates and
subsidiaries increase the equity revaluation adjustment
in connection with long-term financial investments.
The subsequently received shares in profit decrease the
originally shown increase in financial investment on the
basis of a share in profit.
Long-term investments in companies that are not
investments in subsidiaries or associates are valued in
the financial statements according to the investment
method and are annually not increased by a share of the
net profit that belongs to them. The allocated stakes in
the profit are dealt with outside the investments and
increase the financial revenues.
Long-term investments, which are relocated under
short-term investments, are transferred individually at
their book value.
Short-term investments
Short-term investments in the proprietary securities
of other companies and debtor’s securities of
year 2005 - in % year 2004 - in %
Intangible long-term fixed assets 20.0 20.0
Buildings from 2.5 to 4.0 from 2.5 to 4.0
Plant and machinery from 5.0 do 33.3 from 5.0 to 33.3
Other equipment from 10.0 do 25.0 from 10.0 to 25.0
companies or the state are initially valued at their
purchase value.
At the end of the year the value of those securities,
which are listed on the Stock Exchange, is compared
with the market price on the last day of the accounting
period. In case that the market price is higher than the
average purchase price the increase in value of the
investment is not carried out. If the market price is lower
than the average purchase price, then a revaluation
adjustment is formed for the investment.
For short-term securities, which are not listed on the
Stock Exchange, the actual value is determined on the
basis of last known transactions.
Receivables
At their initial recognition the receivables of all types are
shown in the amounts that arise from the corresponding
documents on condition that they will be paid. The
original receivables can later be increased, or irrespective
of payment or any other settlement, decreased by every
amount, which is proven by an agreement.
The advances in the balance sheet are shown in relation
with things they are refer to.
Receivables, which are assumed not be settled within
the due term and in total amount respectively, are
considered doubtful and, if a court procedure has
already began, disputable.
The revaluation adjustments in receivables are formed
as follows:
• a 100 per cent adjustment in all sued receivables and
receivables filed in a bankruptcy proceeding, as well
as current receivables, if the responsible service makes