ANNUAL REPORT 2008 - Gorenje Group
ANNUAL REPORT 2008 - Gorenje Group
ANNUAL REPORT 2008 - Gorenje Group
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84<br />
<strong>2008</strong><br />
4.1.1.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
1. Reporting entity<br />
<strong>Gorenje</strong>, d.d. is a company domiciled in Slovenia. The address of the Company’s registered office<br />
is Partizanska 12, 3503 Velenje. The consolidated financial statements of <strong>Gorenje</strong>, d.d., at and for<br />
the year ended 31 December <strong>2008</strong> comprise the parent company and its subsidiaries (together referred<br />
to as the “<strong>Group</strong>”), and the <strong>Group</strong>’s interests in jointly controlled entities. The <strong>Group</strong> is mainly<br />
engaged in the production and sale of household appliances.<br />
2. Basis of preparation<br />
(a) Statement of compliance<br />
The consolidated financial statements have been prepared in accordance with International Financial<br />
Reporting Standards (IFRSs) as adopted in EU, and provisions of the Companies Act.<br />
The financial statements were approved by the Management Board of <strong>Gorenje</strong>, d.d., on 3 April<br />
2009.<br />
(b) Basis of measurement<br />
The consolidated financial statements have been prepared on the historical cost basis, except for<br />
the following items which are measured at fair value:<br />
• • derivative financial instruments,<br />
• • available-for-sale financial assets,<br />
• • investment property.<br />
The methods used to measure fair values are discussed further in note 4.<br />
(c) Functional and presentation currency<br />
These consolidated financial statements are presented in euro, which is the Company’s functional<br />
currency. All financial information presented in euro has been rounded to the nearest thousand.<br />
(d) Use of estimates and judgements<br />
The preparation of financial statements in conformity with IFRSs requires management to make<br />
judgements, estimates and assumptions that affect the application of accounting policies and the<br />
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these<br />
estimates.<br />
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting<br />
estimates are recognised in the period in which the estimates are revised and in any future periods<br />
affected.<br />
In particular, information about significant areas of estimation uncertainty and critical judgements<br />
in applying accounting policies that have the most significant effect on the amounts recognised in<br />
the financial statements is included in the notes below:<br />
Note 10, 11<br />
Note 33<br />
Note 33<br />
Note 33<br />
Note 39<br />
– acquisition and disposal of companies<br />
– measurement of liabilities for termination benefits and jubilee benefits<br />
– provisions for litigations<br />
– provisions for warranties<br />
– valuation of financial instruments