kontinuita - Komunálna Poisťovňa

NOTES TO
THE FINANCIAL
STATEMENTS
25. Cash flows from operating activities
31 December 2008 31 December 2007
Profit before tax -58,951 643
Depreciation and amortization of non-current assets 10,851 9,650
Movements in financial assets – equity securities -11,856 -250,007
Movements in financial assets – debt securities -3,632 -457,482
Movements in receivables and loans -100,877 -18,649
Movements in reinsurance assets 6,069 544
Movements in deferred acquisition costs 19,302 -
Movements in liabilities from insurance contracts 208,074 692,179
Movements in other liabilities -38,131 -62,155
Movements in derivative financial instruments 19,930 -
Movements in AFS revaluation - 7,107
Interest received 4,747 -12,158
Net cash from operating activities 55,526 -90,328
The Company classifies cash flows from purchases and disposals of financial assets as cash flows from operating activities,
because purchases are financed from cash inflows associated with the conclusion of insurance contracts,
net of cash outflows for paying insurance benefits and claims.
26. Contingent liabilities
Tax legislation
Since many areas of Slovak tax law (such as the transfer-pricing regulations) allow more than one interpretation, tax
authorities may decide to tax certain business activities that the Company believes should not be taxed. The 2008,
2007, and 2006 tax periods were not subject to a tax audit. Therefore, there is a risk that an additional tax imposition
might be imposed. The Company’s management is not aware of any circumstances in this respect that may lead to
significant costs in the future. The tax periods mentioned above could be subject to a tax audit up to years 2013, 2012,
and 2011.
27. Related-party transactions
During the accounting period, the Company carried out transactions with these related parties:
Parent company:
KOOPERATIVA poisťovňa, a.s. Vienna Insurance Group
Other related parties:
WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group, Komunálna poisťovňa, a.s. Vienna Insurance Group
KONTINUITA ANNUAL REPORT 169