Výročná správa 2009 - Komunálna Poisťovňa

(All amount are in thousands of Euros, unless stated otherwise)Costs related to the development or maintenance of computer software are expensed whenincurred. Costs that are directly associated with the production of identifiable and unique softwarecontrolled by the Company, and that will probably generate economic benefits exceeding costsbeyond one year, are capitalized as intangible assets. Acquisition costs include costs of personnelengaged in software development and the related portion of overheads.2.6 Financial assetsRegular-way purchases and sales of financial assets are recognized on trade date – the dateon which the Group commits to purchase or sell the asset. Financial assets are initially recognizedat fair value plus transaction costs, except for financial assets at fair value through profit or loss.Financial assets are derecognized when the rights to receive cash flows from them have expired,or where they have been transferred and the Group has also transferred substantially allrisks and rewards of ownership.Financial assets are classified in the following four categories depending on the purpose forwhich the financial assets were acquired. Management determines the classification of its financialassets at initial recognition and revalues it at every balance-sheet date:1) Financial asset at fair value through profit or loss. This category represents financial asset designatedat fair value through profit or loss at inception. Financial assets designated as at fairvalue through profit or loss at inception are those that are managed and whose performanceis evaluated on a fair-value basis in line with the Company’s investment strategy. Informationabout these financial assets is provided internally on a fair-value basis to the Company’s keymanagement personnel. The Company’s investment strategy is to invest in equity and debtsecurities, and to evaluate them with reference to their fair values.2) Loans and receivables are non-derivative financial assets with fixed or determined paymentsthat are not quoted on an active market, other than those that the Company intends to sellin the short term or that it has designated as at fair value through income or as available forsale. Receivables arising from insurance contracts and loans provided to the insured are alsoclassified in this category, and are reviewed for impairment as part of the impairment reviewof loans and receivables.3) Held-to maturity financial assets are non-derivative financial assets with fixed or determinablepayments and fixed maturities that the Company’s management has the positive intention andability to hold to maturity.4) Financial assets available for sale. Financial assets available for sale are non-derivativefinancial assets that are either designated in this category or not classified in any of the othercategories.Financial assets available for sale and financial assets at fair value through profit or loss aresubsequently carried at fair value. Loans and receivables and held-to-maturity financial assets arecarried at amortized cost using the effective interest method. Realized and unrealized gains andlosses arising from changes in the fair value of the ‘financial assets at fair value through profit orloss’ category are included in the income statement in the period in which they arise. Unrealizedgains and losses arising from changes in the fair value of financial assets available for sale arerecognized in ‘other comprehensive income’.When securities classified as available for sale are sold or impaired, the accumulated fairvalue adjustments recognized in ‘other comprehensive income’ are included in the income statementas net realized gains on financial assets.Gains or losses arising from changes in the fair value of the financial assets at fair value throughthe profit or loss category are presented in the income statement within net fair value gains onfinancial assets at fair value through income in the period in which they arise.Ročná účtovná závierka a komentár I Company Accounts115