Annual report 2005 - Sava dd

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a competent decision that reasonable grounds exist;
• an 80 per cent adjustment in receivables filed in an
obligatory enforcement proceeding.
Cash
Cash consists of book money. Book money is money on
accounts at a bank or any other financial institution and
can be applied for payment. It consists of immediately
available cash. The book value of cash equals its initial
nominal value until the need for a revaluation appears.
Cash in foreign currency is translated to a domestic
currency at the exchange rate on the day of receipt.
The revaluation adjustment of cash in foreign currency
is carried out on the day of reporting. It appears only in
case of cash expressed in a foreign currency. On
conversion the middle exchange rate of the Bank of
Slovenia is used. The revaluation adjustment of cash is
shown as financial revenue and expenses, respectively.
Capital
The total capital comprises called-up capital, capital
reserves, revenue reserves, retained net profit or loss
from previous periods, equity revaluation adjustments
and temporary also undistributed net profit.
Share capital is managed in the domestic currency.
Long-term provisions
Long-term provisions are formed from long-term
accrued costs or expenses and are earmarked for
covering contingent liabilities arising from lawsuits.
Liabilities
Liabilities are either financial or operating, short-term or
long-term.
All liabilities are initially recognised with the amounts
arising from the corresponding documents about their
appearance, which prove the receipt of cash or redemption
of any operating liability, in the case of long-term
operating liabilities the receipt of tangible fixed assets, in
the case of short-term operating liabilities the receipt of a
product or a service or performed work and charged costs,
expenses or a share in the net profit respectively.
Long-term liabilities are further increased by imputed
interests or decreased by repaid amounts and any other
settlements, agreed upon with a creditor. The book value
of long-term liabilities equals their original value
decreased by repayment of the principal and transfers
under short-term liabilities until the need for a
revaluation adjustment of long-term debts appears.
The book value of short-term liabilities equals their
original value adjusted by their increases or decreases as
agreed upon with the creditors until the need for their
revaluation adjustment appears.
Short-term and long-term liabilities of all kinds are
initially shown with the amounts, which arise from the
corresponding documents on condition that the creditors
request their repayment. The liabilities are later
increased with imputed yields (interests, other
compensations), about which an agreement is made with
the creditor. Liabilities are decreased by repaid amounts
and any other settlements in agreement with the
creditor. Long-term liabilities are decreased for the part
that should be paid in less than a year, which is shown
under short-term liabilities.
Short-term accruals and deferrals
Deferred costs and accrued revenues include short-term
deferred costs.
Short-term accrued costs and deferred revenues include
deferred input tax on added value due from effected
advances.
The basis for short-term accruals and deferrals are the
facts determined owing to certain knowledge and put
down as a resolution about the formation of short-term
accruals and deferrals and book-keeping documents
acquired from the external business partners.
Recognition of revenues
Revenues are recognised if the enhancement of
economic benefits in the accounting period is connected
with an increase in an asset or decrease in a liability and
such an increase could be reliably measured.
Revenues are recognised when it is legitimate to expect
they will result in earnings if these were not already
implemented at their appearance.