Annual report - HSE
Annual report - HSE
Annual report - HSE
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
5.5.4 Currency <strong>report</strong>s<br />
5.5.4.1 Functional and presentation currency<br />
The consolidated financial statements contained in this Report are presented in euro (EUR)<br />
without cents. The euro has been the functional and presentation currency of the Group.<br />
Due to the rounding of amounts, minor but insignificant deviations exist in the tables.<br />
5.5.4.2 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. Non-cash assets and<br />
liabilities expressed in foreign currency and measured at fair value are converted in the<br />
functional currency at the exchange rate on the date when the amount of fair value is<br />
determined. Exchange differences are recognised in consolidated income statement using<br />
net principle.<br />
In translation of financial statements of subsidiaries abroad, whose functional value is not<br />
equal to presentation value of the Group, the following exchange rates are used:<br />
• assets and liabilities (except equity) translated at the exchange rate on the <strong>report</strong>ing date,<br />
• equity at initial exchange rate, and<br />
• revenue and expenses at average exchange rate in the <strong>report</strong>ing year.<br />
5.5.5 Use of assessments and judgements<br />
The preparation of consolidated financial statements requires that the management forms<br />
certain assessments and assumptions which affect the disclosed amounts of assets and<br />
liabilities, revenue and expenses and disclosures of contingent assets and liabilities in the<br />
<strong>report</strong>ing 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 />
5 Financial Report of <strong>HSE</strong> Group<br />
<strong>Annual</strong> Report <strong>HSE</strong> 2012<br />
172<br />
• assessment of useful life of amortisable assets (disclosure 5.5.8.1, points 1 and 2);<br />
• test of impairment of assets (disclosure 5.5.8.1, points 1, 2 and 3);<br />
• assessment of fair value of derivatives (disclosure 5.5.8.8.3 and 5.5.8.8.4);<br />
• assessment of realisable values of receivables (disclosure 5.5.8.8.1);<br />
• assessment of net realisable value of inventories (disclosure 5.5.8.1, point 5);<br />
• assessment of provisions for jubilee and termination benefits (disclosure 5.5.8.1, point<br />
10);<br />
• assessment of other provisions (disclosure 5.5.8.1, point 11); and<br />
• assessment of contingent liabilities and assets (disclosure 5.5.8.1, point 18).