Annual report 2005 - Sava dd

| notes to the financial statements of the company Sava d.d. in accordance with SAS |
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Operating revenues
Revenues from provided services with the exception of
provided services that result in financial revenues are
measured at the selling prices of finished services or at
the selling prices of services in progress with respect to
the level of their completion.
Revenues from received subsidies or endowments are
measured in amounts that are approved for this purpose.
Operating revenues from revaluation arise upon the
disposal of tangible fixed assets and intangible fixed
assets considering the equity revaluation adjustment
from the precedent increase in the value of assets.
Financial revenues
Financial revenues are revenues from investment
activities. They arise in relation to long-term and shortterm
financial investments and also receivables.
Financial revenues are recognised upon accounting
irrespective of the proceeds if their size, maturity and
redemption are not doubted.
Interests are charged in proportion to the period expired
and with regard to the not yet redeemed share of the
principal and the valid interest rate.
Dividends and shares in profit achieved in subsidiaries
and associates are taken into account when they are
paid.
Financial revenues from revaluation arise upon the
disposal of long-term and short-term financial
investments considering the equity revaluation
adjustment from the precedent increase in the value of
financial investments.
Extraordinary revenues
Extraordinary revenues consist of extraordinary items.
They appear in actually incurred amounts.
Recognition of expenses
Expenses are recognised if a decrease in economic
benefits in the accounting period is connected with a
decrease in assets or an increase in liabilities and this
decrease could be reliably measured.
Operating expenses
Operating expenses are recognised when the material is
used and service provided, respectively.
Operating expenses are recognised in the period, to
which they relate.
Operating expenses from revaluation are recognised
when a corresponding revaluation adjustment is carried
out irrespective of their influence on the operating profit
or loss.
Operating expenses from revaluation arise in connection
with tangible fixed assets, intangible fixed assets and
current assets due to their impairment.
Financial expenses
Financial expenses are expenses for financing and
investing activities.
Financial expenses are recognised after balancing
irrespective of payments that are in relation with them.
Financial expenses from revaluation arise in connection
with long-term and short-term financial investments due
to their impairment and in connection with the increase
in the value of long-term and short-term liabilities.
Extraordinary expenses
Extraordinary expenses include extraordinary items that
are shown in actually arisen amounts.
Cash Flow Statement
Cash Flow Statement is drawn according to the indirect
method based on data from the Balance Sheet at 31
December 2005 and the Balance Sheet at 31 December
2004 and the data from the Income Statement for the
year 2005 and additional data, which is required for
adapting the inflows and outflows and a corresponding
breakdown of important items.