kontinuita - Komunálna Poisťovňa

NOTES TO
THE FINANCIAL
STATEMENTS
losses resulting from the settlement of such transactions
and from the conversion of monetary assets and
liabilities denominated in foreign currencies at yearend
exchange rates are recognized in the income
statement.
Changes in the fair value of monetary securities denominated
in foreign currency classified as available
for sale are split into exchange rate changes and other
changes. Foreign exchange differences are recognized
in the income statement, while other changes are recognized
in equity.
Non-monetary assets and liabilities denominated in
foreign currency and stated at cost are converted using
the exchange rate effective at the transaction date.
Non-monetary assets and liabilities denominated in
foreign currency and stated at fair value are converted
using the exchange rate effective at the date on which
the fair value is determined.
2.3 Property, plant, and equipment
(i) Acquisition cost
Non-current tangible assets are mainly made up of immovable
property and equipment. All tangible assets
are stated at cost less accumulated depreciation and
any impairment losses. Acquisition costs include all
expenditures that are directly attributable to the acquisition
of the respective asset. Subsequent costs are
included in the asset’s carrying amount; however, they
may be recognized as a separate asset only when it is
probable that future economic benefits associated with
the item will flow to the Company and the cost of the
item can be reliably estimated. All other expenses for
repairs and maintenance are charged to the income
statement when incurred.
(ii) Depreciation
Land and assets under construction are not depreciated.
Depreciation of other assets is calculated from the
difference between their acquisition costs and the final
residual values evenly over their estimated useful lives.
The estimated useful lives of individual groups of assets
are as follows:
Buildings
Means of transport,
computer equipment
Office equipment and furniture
Other tangible assets
50 years
4 years
4 years
4 years
The assets’ final residual values and useful lives are
reviewed and adjusted, if necessary, at each balance
sheet date.
Gains or losses from the disposal of assets are calculated
as the difference between proceeds and the carrying
amount of assets, and are included in the income
statement.
2.4 Intangible assets
Costs incurred for the acquisition of licenses and for
putting software into use are capitalized. They are
amortized on a straight-line basis over the asset’s estimated
useful live of no more than four years.
Costs related to the development or maintenance of
computer software are expensed when incurred. Costs
directly attributable to precisely defined and unique
software controlled by the Company the probable economic
benefit of which will exceed its costs for more
than one year are capitalized as intangible assets. Acquisition
costs include the costs of staff engaged in developing
the software and the related portion of
overhead expenses.
2.5 Financial assets
Common purchases and sales of financial assets are
recognized at the trade date – the date on which the
Company acquires or delivers the given asset. Finan-
KONTINUITA ANNUAL REPORT 103