Accounting Policies
This includes allowing for any restructuring
provisions determined in relation to the
enterprise acquired. Any remaining positive
differences are recognised in intangible assets in
the balance sheet as goodwill, which is amortised
in the income statement on a straight-line basis
over its estimated useful life which does not
exceed 20 years. Amounts attributable to
expected losses or expenses are recognised as
income in the income statement as the affairs
and conditions to which the amounts relate
materialise.
All other leases are considered operating leases.
Payments made under operating leases are
recognised in the income statement on a
straight-line basis over the lease term.
Intra-group business combinations
The book value method is applied to business
combinations such as acquisitions and disposal of
equity investments, mergers, demergers,
additions of assets and share conversions, etc.,
in which entities controlled by the Parent
Company are involved, provided that the
combination is consideres completed at the
acquisition date without any restatement of
comparetive figures. Differences between the
agreed consideration and the carrying amount of
the acquiree are recognised directly in equity.
Positive and negative differences from
enterprises acquired may, due to changes to the
recognition and measurement of net assets, be
adjusted until 12 months after the acquisition.
These adjustments are also reflected in the value
of goodwill or negative goodwill, including in
amortisation already made.
For vertical and downstream intra-group mergers
the group method is applied for the combination
of the entities. Thereby, the entities are
combined at the revaluation value recognised in
the consolidated financial statements or which
would have been recognised in th ecomsolidated
financial statements for the parent company
included in the merger. The group method is
applied as if the entities had been combined
from the date when the parent company
Amortisation of goodwill is allocated in the
Consolidated Financial Statements to the
operations to which goodwill is related.
Amortisation of goodwill is recognised in
“Amortisation, depreciation and impairment
losses”.
acquired the equity investments in the entiries
included in the merger, and therefore, the
comparative figures were restarted.
Leases
The Group has chosen IAS 17 Leases as
interpretation for classification and recognition
of leases.
Translation policies
Transactions in foreign currencies are translated
at the exchange rates at the dates of
transaction. Exchange rate differences arising
due to differences between the transaction date
rates and the rates at the dates of payment are
recognised in financial income and expenses in
the income statement.
Leases in terms of which the Group assumes
substantially all the risks and rewards of owner-
ship (finance leases) are recognised in the
balance sheet at the lower of the fair value of
the leased asset and the net present value of the
lease payments computed by applying the
interest rate implicit in the lease or an
approximate value as the discount rate. Assets
acquired under finance leases are depreciated
and written down for impairment under the same
policy as determined for the other fixed assets of
the Group.
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Receivables, payables and other monetary items
in foreign currencies that have not been settled
at the balance sheet date are measured at the
exchange rates at the balance sheet date. Any
differences between the exchange rates at the
balance sheet date and the rates at dates when
the receivables or the payables arise are
recognised in financial income and expenses in
the income statement.
The remaining lease obligation is capitalised and
recognised in the balance sheet under debt, and
the interest element of the lease payments is
charged over the lease term to the income
statement.
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