Výročná správa 2009 - Komunálna Poisťovňa

(All amount are in thousands of Euros, unless stated otherwise)(ii)Transactions and balancesForeign currency transactions are translated into the functional currency using the exchangerates prevailing at the dates of the transactions. Foreign exchange gains and losses resultingfrom the settlement of such transactions and from the translation at year-end exchange rates ofmonetary assets and liabilities denominated in foreign currencies are recognized in the incomestatement.Conversion differences from non-monetary financial assets are recognized as profit/loss fromthe fair value valuation. Translation differences on non-monetary items, such as equities classifiedas financial assets available for sale, are included in ‘other comprehensive income’ as a part of arevaluation reserve for investments available for sale.2.3 Property, plant and equipment(i) Acquisition costNon-current tangible assets consist mainly of buildings. All non-current tangible assets arestated at historical cost less accumulated depreciation and accumulated impairment losses. Historicalcost includes all expenditures that are directly attributable to the acquisition of the items.Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset,as appropriate, only when it is probable that future economic benefits associated with the itemwill flow to the Company and the cost of the item can be measured reliably. All other repairs andmaintenance are charged to the income statement during the financial period in which they areincurred.(ii)DepreciationLand and assets under construction are not depreciated. Depreciation of other assets is calculatedusing the straight-line method to allocate their cost or revaluated amounts to their residualvalues over their estimated useful lives.The estimated useful lives of individual groups of assets are as follows:Buildings 30 - 50 yearsMotor vehicles and computers3 - 4 yearsOffice equipment and furniture4 – 15 yearsLow value tangible assets1 yearThe assets’ residual values and useful lives are reviewed at each balance-sheet date andadjusted, if appropriate.Profit or loss from the disposal of assets is calculated as the difference between proceedsfrom sale and the book value of assets, and are included in the income statement.2.4 Investment propertyInvestment property, principally comprising freehold office buildings, is held for long-term rentalyields and is not occupied by the Company. Investment property is stated at historical cost lessaccumulated depreciation and accumulated impairment losses. Historical cost includes expenditurethat is directly attributable to the acquisition of the items. For depreciation, see Note 2.3 (ii).2.5 Non-current intangible assetsAcquired computer software licences are capitalized on the basis of costs incurred to acquireand put to use the specific software. Amortization is calculated using the straight-line method toallocate the cost of licenses over the estimated useful lives, not exceeding five years.Ročná účtovná závierka a komentár I Company Accounts113