Annual Report 2012 - Tivoli

❖tivoli ANNUAL REPORT 2012 ❖Impairment losses are reversed only where the newcarrying amount of the asset does not exceed the carryingamount that the asset would have had after depreciationif the asset had not been impaired.InventoriesInventories are measured at cost calculated under theaverage cost method. Where net realisable value is lowerthan cost, inventories are written down to the lowervalue.The cost of goods for resale comprises cost of purchase,transport and handling costs.The net realisable value of inventories is calculatedat selling price with deduction of costs to sell and isdetermined allowing for marketability, obsolescence anddevelopment in expected sales sum.ReceivablesReceivables are measured at amortised cost. Provisionsfor bad debts are made.PrepaymentsPrepayments comprise prepaid expenses relating tosubsequent financial years and are measured at amortisedcost.EquityProposed dividend is recognised as a liability at the timeof adoption at the Annual General Meeting (the time ofdeclaration). Dividend expected to be distributed for theyear is disclosed as a separate equity item.Current tax and deferred taxCurrent tax liabilities and receivables are recognised inthe balance sheet at the amount calculated on the taxableincome for the year adjusted for tax on taxable incomesfor prior years.Deferred tax is measured under the balance sheet liabilitymethod in respect of all temporary differences betweenthe carrying amount and the tax base of assets and liabilities.However, deferred tax is not recognised in respect ofitems where temporary differences have arisen at the timeof acquisition without affecting the profit for the year orthe taxable income. In cases where the computation of thetax base may be made according to different tax rules,deferred tax is measured on the basis of Management’sintended use of the asset and settlement of the liability,respectively.Deferred tax assets, including the tax base of tax losscarry-forwards, are recognised at the value at which theyare expected to be realised, either by elimination in taxon future earnings or by set-off against deferred tax liabilitieswithin the same legal tax entity and jurisdiction.Deferred tax is measured on the basis of the tax rules andtax rates that will be effective under the legislation at thebalance sheet date when the deferred tax is expected tocrystallise as current tax. Changes to deferred tax due tochanged tax rates are recognised in the income statement.Financial liabilitiesMortgage loans and loans from credit institutionsare recognised initially at the proceeds received netof transaction expenses incurred. Subsequently, thefinancial liabilities are measured at amortised cost usingthe “effective interest method”; the difference between theproceeds and the nominal value is recognised in financialexpenses in the income statement over the loan period.Other liabilities are measured at amortised cost.Deferred incomeDeferred income comprises payments received in respectof income for subsequent years measured at amortisedcost.Cash flow statementThe cash flow statement shows cash flows for the yearbroken down by operating, investing and financing activities,changes for the year in cash and cash equivalents aswell as cash and cash equivalents at the beginning andend of the year.Cash flows from operating activities are calculated underthe indirect method as profit before tax adjusted for noncashoperating items, changes in working capital, interestpaid and corporation tax paid.Cash flows from investing activities comprise cash flowsfrom business acquisitions and sales, acquisition anddisposal of intangible assets, property, plant and equipmentand other non-current assets.Cash flows from financing activities comprise changesto the amount or structure of share capital and relatedexpenses as well as cash flows from the raising of loans,repayment of interest-bearing debt as well as dividenddistribution to shareholders.Cash and cash equivalents comprise cash at bank andin hand.Segment reportingAt Tivoli, management responsibility is divided on eightmain areas managed by Vice Presidents. Five of the mainareas generate revenue, whereas the three remainingmain areas undertake administrative functions withinIT, Finance, Marketing and HR as well as operation andmaintenance of the Gardens. Only the first five mainareas are considered reportable according to IFRS 8. Themain area Gardens is broken down on Service and F&Bas previously.Depreciation, amortisation and financial expenses arenot allocated on to the main areas. Therefore “Profitbefore depreciation, amortisation and impairment” hasbeen chosen as a performance measure in the segmentreporting. Similarly, the balance sheet has not beenbroken down on main areas and therefore total assets permain area are not presented.48