kontinuita - Komunálna Poisťovňa

NOTES TO
THE FINANCIAL
STATEMENTS
The estimated fair values of loans and receivables do not significantly differ from their carrying values.
Concentration of credit risk in relation to loans and receivables is insignificant, as the Company has a large number of
various debtors (Note 4.2.3).
In 2008, the Company set up a valuation allowance for receivables in the amount of SKK 16,943 thousand. In 2007, the
Company released a valuation allowance for receivables in the amount of 8,469 thousand SKK. The set-up of the valuation
allowance for receivables is included in the income statement as marketing and administrative costs.
10. Deferred acquisition costs
Reconciliation of changes in deferred acquisition costs is as follows:
2008 2007
At 1 January 238,298 132,472
Capitalization 152,255 322,794
Amortization -171,557 -216,968
At 31 December 218,996 238,298
11. Cash and cash equivalents
Year ended 31 December 2008 2007
Cash on hand and in banks 10,143 10,299
Short-term bank deposits 573,870 69,020
Total 584,013 79,319
The effective interest rate on short-term bank deposits was 2.94% in 2008 (2007: 3.68%) and had an average maturity
of 2.14 days (2007: 2.74 days).
12. Share capital
Number of
ordinary shares
Ordinary shares
(in millions of SKK)
At 1 January 2007 300 300
At 31 December 2007 300 300
At 31 December 2008 300 300
At 31 December 2008, the share capital comprised 300 issued, authorized, and paid ordinary shares (at 31 December 2007:
300). The nominal value of each share is SKK 1 million. The holders of all ordinary shares have the right to vote and receive
dividends in the proportion of the value of shares they hold to the total value of the Company’s shares (Note 1).
KONTINUITA ANNUAL REPORT 149