Financial Information - Uralita
Financial Information - Uralita
Financial Information - Uralita
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
FINANCIAL INFORMATION ANNUAL REPORT 2006<br />
• The estimate of the potential losses due to the<br />
impairment of certain assets,<br />
• The useful life of property, plant and<br />
equipment and of intangible assets,<br />
• The measurement of goodwill.<br />
€11,960 thousand in the depreciation expense<br />
in the income statement for the year ended 31<br />
December 2006.<br />
Material errors are applied retrospectively, with<br />
changes to the information affected by the<br />
errors.<br />
These estimates were made on the basis of the<br />
best information available at 31 December 2006<br />
and 2005. However, it is feasible that future<br />
events could oblige the company to modify these<br />
amounts (upwards or downwards) prospectively<br />
in the coming years, taking the effects of said<br />
changes to the corresponding consolidated<br />
income statements, pursuant to IAS 8.<br />
4.23. Changes in estimates and accounting<br />
principles and correction of material<br />
errors<br />
The impact of any change in estimates is<br />
recognized in the same entry of the income<br />
statement that includes the previously estimated<br />
expense or revenue. In this respect, to adapt the<br />
depreciation rates used for property, plant and<br />
equipment of certain Group companies<br />
(Insulation Business) to their useful life based on<br />
updated conditions of use adapted to the<br />
Group’s new structure from the business’ global<br />
reorganization, in 2006 the Company<br />
reestimated the depreciation rates for<br />
“Buildings”, “Plant” and “Machinery” of these<br />
companies. In accordance with the standards,<br />
the change in estimates was made prospectively.<br />
This led to a net decrease of approximately<br />
5. GOODWILL<br />
Goodwill at 31 December 2006 and 2005 arose<br />
from the acquisition of equity investments in the<br />
following subsidiaries.<br />
THOUSANDS OF EUROS<br />
OAO URSA Chudovo<br />
23,767<br />
URSA Dämmsysteme Austria GMBH<br />
10,296<br />
URSA Salgotarjan Rt.<br />
9,831<br />
TOTAL<br />
43,894<br />
Goodwill acquired prior to 1 January 2004 is<br />
stated at the net amount recognized at that date<br />
(see Note 4.1). There were no movements in this<br />
caption in 2006 and 2005.<br />
The Group’s directors have implemented a<br />
procedure to be followed annually to identify<br />
potential capital losses on the cost recorded with<br />
respect to the recoverable value of such losses.<br />
The procedure for performing this “impairment<br />
test” is the following:<br />
151