Annual Report Gorenje Group 2009

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GROUP - 1. REPORTING ENTITY
Gorenje, d.d. is a company domiciled in Slovenia. The address of the Company’s registered office is
Partizanska 12, 3503 Velenje.
The consolidated financial statements of Gorenje, d.d. at and for the year ended 31 December 2009
comprise the parent company and its subsidiaries (together referred to as the “Group”), and the
Group’s interests in jointly controlled entities. The Group is mainly engaged in the production and sale
of household appliances.
GROUP - 2. BASIS OF PREPARATION
a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted in EU, and provisions of the Companies Act.
The financial statements were approved by the Management Board of Gorenje, d.d. on 29 March 2010.
b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for the
following items which are measured at fair value:
• derivative financial instruments
• available-for-sale financial assets
• land
• investment property
The methods used to measure fair values are discussed further in note 4.
c) Functional and presentation currency
These financial statements are presented in euro, which is the Company’s functional currency. All
financial information presented in euro has been rounded to the nearest thousand.
d) Use of estimates and judgements
The preparation of financial statements in conformity with IFRSs as adopted by EU requires
management to make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amounts recognised in the
financial statements is included in the notes below:
Note 10, 11 - acquisition and disposal of companies
96
Annual Report Gorenje Group 2009