Annual report - HSE

Costs of services are historical costs of services purchased, namely maintenance services,
advertising services, entertainment, insurance premiums, payment transaction and other
banking services (except interest), rentals, advisory services, business travels and similar
services.
Write-downs in value include amortisation/depreciation costs related to consistent
transfer of value of amortisable intangible assets and property, plant and equipment.
Write-downs in value also include impairments, write-downs and losses from the sales of
intangible assets and property, plant and equipment as well as impairments or write down
of receivables.
Labour costs are historical costs that refer to salaries and similar values in gross amounts
as well as duties that are calculated from this basis and are not an integral part of gross
amounts.
Other operating expenses occur in relation to creation of provisions, environmental
charges and other duties.
Financial expenses comprise borrowing costs, including related derivatives and losses
from the liquidation of subsidiary. Interest expenses are recognised upon their occurrence,
in the amount of agreed-upon interest rate.
4.5.7.14 Tax
Taxes include current and deferred tax liabilities. Current tax is included in the income
statement. The deferred tax is recorded in the income statement and the statement of
financial position.
Current tax liabilities are based on taxable profit for the period. The taxable profit defers
from net profit reported in the profit or loss, since it excludes the items of revenue or
expenses that are taxable or deductible in other years as well as items that are never
taxable or deductible. The company’s current tax liabilities are calculated with tax rates
that are applicable on the reporting date. Current tax liabilities decrease in the event of
advance payments of corporate income tax during the year.
In 2011, the applicable tax rate for corporate income tax amounted to 20%.
In 2012, a change in tax rates of corporate income tax was adopted:
• 2012 - 18% tax rate,
• 2013 - 17% tax rate,
• 2014 - 16% tax rate,
• From 2015 - 15% tax rate.
Deferred tax is completely disclosed using the liabilities method after the statement of
financial position for temporary differences arising between the tax base of assets and
liabilities and their carrying amounts in financial statements. Deferred income tax is defined
using tax rates (and legislation) applicable on the date of financial position and for which it
is expected to be in use when the receivable for deferred tax is realised or the liability for
deferred tax is settled.
A deferred tax asset is recognised if there is a possibility that a taxable profit will be available
in the future, from which it will be possible to utilise temporary differences. It represents
the amount of the calculated corporate income tax on deductible temporary differences.
4.5.7.15 Statement of other comprehensive income
Annual Report HSE 2012
4 Financial Report of the company HSE
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The company does not present deferred taxes arising from items of other comprehensive
income separately in the statement, but it discloses the amount of tax for each individual
item in the explanatory notes.
4.5.7.16 Cash flow statement
Cash flow statement represents changes in cash and cash equivalents of the financial year,
for which it is prepared. The part of cash flow statement related to operations is prepared
according to indirect method, based the statement of financial position and the income
statement data, while the part related to investment and financing activities is prepared
using the direct method.