Annual report - HSE
Annual report - HSE
Annual report - HSE
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4.5.3 Basis of measurement<br />
Company’s financial statements are prepared on the basis of balance sheet items historical<br />
values, except the following assets and liabilities carried at fair value.<br />
4.5.4 Currency <strong>report</strong>s<br />
4.5.4.1 Functional and presentation currency<br />
The financial statements contained in this Report are presented in euro (EUR) without<br />
cents. The euro has been the functional and presentation currency of the company. Due to<br />
the rounding of amounts, minor but insignificant deviations exist in the tables.<br />
4.5.4.2 Foreign currency translation<br />
Transactions expressed in foreign currency are translated into the relevant functional<br />
currency at the exchange rate applicable on the date of transaction.<br />
Cash and liabilities expressed in a foreign currency at the end of the <strong>report</strong>ing period are<br />
converted into functional currency at then applicable exchange rate.<br />
Positive or negative foreign exchange differences are differences between amortised cost<br />
in the functional currency at the beginning of the period, which is repaired for the amount<br />
of effective interest and payments during the period, as well as amortised cost in foreign<br />
currency converted at the exchange rate at the end of the period.<br />
Foreign exchange differences are recognised in the income statement, namely in net<br />
amounts.<br />
4.5.5 Use of assessments and judgements<br />
The preparation of financial statements requires that the management forms certain<br />
assessments and assumptions which affect the disclosed amounts of assets and liabilities,<br />
revenue and expenses and disclosures of contingent assets and expenses in the <strong>report</strong>ing<br />
period.<br />
Assessments and judgements are based on past experience and other factors that are<br />
considered reasonable in the given circumstances and on the basis of which the judgements<br />
on the carrying amount of assets and liabilities are expressed. Since the assessments<br />
and assumptions are subject to subjective judgement and certain level of uncertainty,<br />
subsequent actual results can differ from assessments. The assessments are examined<br />
on regular basis. Changes in accounting estimates are recognised in the period in which<br />
the assessments were changed if the change affects only that period or in the period of<br />
change and in future periods in case the change affects future periods.<br />
Assessments and assumptions are present at least at the following judgements:<br />
<strong>Annual</strong> Report <strong>HSE</strong> 2012<br />
4 Financial Report of the company <strong>HSE</strong><br />
118<br />
• assessment of useful life of amortisable assets (disclosure 4.5.8.1, points 1 and 2);<br />
• test of impairment of assets (disclosure 4.5.8.1, points 1, 2 and 3);<br />
• assessment of fair value of derivatives (disclosure 4.5.8.1, point 9);<br />
• assessment of realisable values of receivables (disclosure 4.5.8.8.1);<br />
• assessment of provisions for jubilee and termination benefits (disclosure 4.5.8.1, point<br />
10);<br />
• assessment of other provisions (disclosure 4.5.8.1, point 11); and<br />
• assessment of contingent liabilities and assets (disclosure 4.5.8.1, point 16).