kontinuita - Komunálna Poisťovňa

NOTES TO
THE FINANCIAL
STATEMENTS
2. Summary of Significant Accounting Policies
2.1 Basis of preparation
These financial statements have been prepared as
separate financial statements in accordance with Article
17a), paragraph 1, of Act 431/2002 on Accounting,
as amended, and in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by
the European Union (“EU”).
The Company is part of WIENER STÄDTISCHE Versicherung
AG Vienna Insurance Group (“the Group”).
The financial statements have been prepared under
the historical cost convention, except for the valuation
of financial assets available for sale, and financial assets
and financial liabilities at fair value through profit
and loss, which are stated at fair value.
The preparation of financial statements in accordance
with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise
its judgment in the process of applying the
Company’s accounting policies. The areas involving
higher degree of judgment or complexity, or areas
where assumptions and estimates are significant to
the financial statements are disclosed in Note 3.
All amounts in the Notes are shown in thousands of
Slovak crowns (“SKK”), unless stated otherwise.
The Board of Directors may propose to the Company’s
shareholders to amend the financial statements even
after their approval by the General Meeting. However, according
to Article 16, paragraphs 9 to 11 of the Accounting
Act, an entity’s accounting records cannot be
reopened after the financial statements have been prepared
and approved. If, after the financial statements
have been approved, management identifies that the
comparative information would not be consistent with the
current period information, the Accounting Act allows entities
to restate comparative information in the accounting
period in which the relevant facts are identified.
Interpretations and amendments to published standards
effective in 2008 which the Company has applied
IFRIC 11, IFRS 2 – Group and Treasury Share Transactions
(effective for annual periods beginning on or after
1 March 2007). The interpretation contains guidelines
on the following issues: an entity grants its employees
rights to its equity instruments that may or must be repurchased
from a third party in order to settle obligations
towards the employees; or an entity or its owner
grants the entity's employees rights to the entity's equity
instruments. This interpretation which has been
adopted by the EU has no impact on the Company’s financial
statements.
IFRIC 12, Service Concession Arrangements (effective
for annual periods beginning on or after 1 January
2008). The Company does not provide services to the
public sector based on concession arrangements.
Therefore, this interpretation which has not yet been
adopted by the EU has no impact on the Company’s financial
statements.
IFRIC 14, IAS 19 – The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and Their Interaction
(effective for annual periods beginning on or after 1
January 2008). The Company’s pension plans are not
subject to any legal or other minimum funding requirements.
Therefore, this interpretation which has
been adopted by the EU has no impact on the Company’s
financial statements.
Reclassification of Financial Assets – Amendment to IAS
39, Financial Instruments: Recognition and Measurement,
and IFRS 7, Financial Instruments: Disclosures.
The amendments allow entities the options (a) to reclassify
a financial asset out of the held for trading category
KONTINUITA ANNUAL REPORT 93