Annual Report Gorenje Group 2009

(iv) Provisions for retirement benefits and jubilee premiums
In accordance with the statutory requirements, the collective agreement, and the internal regulations,
the Group is to pay to its employees jubilee premiums and retirement benefits. For these obligations,
long-term provisions are created. Other retirement obligations do not exist.
Provisions are created by discounting, at the reporting date, the estimated future payments of
retirement benefits and jubilee premiums. The obligation is calculated separately for each employee by
estimating the costs of retirement benefits and the costs of all expected jubilee premiums until
retirement. The selected annual discount rate is 5.40%, which is the rate of return on 10-year
entrepreneurial bonds in euro area. The calculation has been performed by a certified actuary using
the projected unit method.
m) Revenue
(i) Revenue from the sale of products, merchandise and materials
Revenue from the sale of products, merchandise and materials in the course of ordinary activities is
measured at the fair value of the consideration received or receivable, net of returns, trade discounts
and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have
been transferred to the buyer, recovery of the consideration is probable, the associated costs and
possible return of goods can be estimated reliably, there is no continuing management involvement
with the goods, and the amount of revenue can be measured reliably. If it is probable that discounts will
be granted and the amount can be measured reliably, then the discount is recognised as a reduction of
revenue as the sales are recognised.
The transfer of risks and rewards varies depending on the individual terms of the contract of sale. For
sales of goods, usually transfer occurs when the product is received at the customer's warehouse;
however, for some international shipments transfer occurs upon loading the goods onto the relevant
carrier.
(ii) Revenue from services rendered
Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion
of the transaction at the reporting date. The stage of completion is assessed by reference to surveys of
work performed.
(iii) Commissions
When the Group acts in the capacity of an agent rather than as the principal in a transaction, the
revenue recognised is the net amount of commission made by the Group.
(iv) Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over the
term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease. Rental income from subleased property is recognised as other
income.
n) Government grants
Government grants are recognised initially as deferred income when there is reasonable assurance
that they will be received and the Group will comply with the conditions associated with the grant.
Grants that compensate the Group for expenses incurred are recognised in profit or loss as other
income on a systematic basis in the same periods in which the expenses are recognised. Grants that
108
Annual Report Gorenje Group 2009