Page 60 - InterEnergo - Annual Report 2020
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Interenergo                       Accounting report                                                                    Interenergo                       Accounting report

            2.  Notes to the company’s financial                                                                                   All financial information is presented in rounded to one unit, which may result in insignificant deviations in
                                                                                                                                   the tables.
                     statements                                                                                                    2.2.4  Use of estimates and judgements

                                                                                                                                   Judgements, assumptions and uncertainty related to estimates

            2.1      Reporting entity                                                                                              The preparation of financial statements in conformity with IFRS requires management to make judgements,
                                                                                                                                   estimates and assumptions that affect the application of accounting policies and the reported amounts of
                                                                                                                                   assets, liabilities, income and expenses. Actual results may differ from these estimates.
            Interenergo, energetski inženiring, d.o.o (hereinafter referred to as ‘Interenergo or ‘Company’) is headquartered
            at Tivolska cesta 48, 1000 Ljubljana in Slovenia. Interenergo and its subsidiaries are present on energy markets       Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
            of Central and South-Eastern Europe. The Company’s core business goal and fundamental responsibility is a              are recognised in the period in which the estimates are revised and in any future periods affected.
            safe and business-efficient supply of electricity, implementation of investment-related projects that promote          As assessments and assumptions are subject to subjective judgment and some degree of uncertainty, subsequent
            economically, environmentally and socially responsible exploitation of renewable energy sources, and provision         actual results may differ from estimates. Changes in accounting estimates, judgments and assumptions are
            of energy services.                                                                                                    recognized in the period in which the estimates are changed, if the change affects only that period, or in the

            The accompanying financial statements of the Company for the financial year ended 31 December 2020 give                period of the change and in future periods, if the change affects future periods. Information on assessments,
            a true and fair view of its financial position.                                                                        assumptions and uncertainties associated with estimates is included in the following disclosures:

            The financial statements, compiled for the period from 1 January 2020 to 31 December 2020, were approved               •   Note 2.4.3 – assessing the impairment of investments in subsidiaries and loans to other subsidiaries: key
            by the Management Board on 19 May 2021.                                                                                    assumptions used in determining the recoverable value;
            Interenergo, d.o.o. is the subsidiary of the Kelag company, which holds a 100 percent share, yet issued no             •   Note 2.4.16 – assessing whether the company acts as an agent or principal in implementing the contract
            securities for trading on a regulated market. Accordingly and in accordance with Paragraph 6, Article 56 of the            on commission services;
            Companies Act (ZGD-1), Interenergo is not obliged to compile a consolidated annual report (excluded company)           •   Note 2.4.16 – assessing whether revenue are recognised immediately or gradually;
            as it is included in the consolidation of the Kelag controlling company. The Company will publish the translation      •   Note  2.5.1  –  measuring  expected  credit  loss  (ECL)  from  trade  receivables  and  contract  assets:  key
            of the consolidated annual report of the Kelag Group within one month after its publication.
                                                                                                                                       assumptions in determining the loss rate.
            The annual report is available at the registered seat of Interenergo, d.o.o., Tivolska 48, Ljubljana, the consolidated
            annual report of the overall Kelag Group is kept by the company KELAG-Kärntner Elektrizitäts-Aktiengesellschaft        Fair value measurement
            as the parent company of a larger group of companies at the address Arnulfplatz 2, Postfach 176, Klagenfurt
            am Wörthersee, Austria.                                                                                                Numerous accounting policies and disclosures require the measuring of fair value of financial assets, non-
                                                                                                                                   financial assets and liabilities.
            2.2      Basis for preparation of financial statements                                                                 The Company applies valuation methods that are adequate in given circumstances and for which sufficient
                                                                                                                                   information exists, in particular by using proper market input data and a minimum use of non-market data.
            2.2.1  Compliance statement                                                                                            Assets and liabilities measured or disclosed in the financial statements at fair value are classified pursuant
                                                                                                                                   to the fair value hierarchy on the basis of the lowest level of input data that are significant for measuring the
                                                                                                                                   whole fair value:
            Company’s financial statements are compiled in compliance with the International Financial Reporting Standards
            (IFRS), as adopted by the European Union (EU), and pursuant to provisions of the Companies Act.                        •   Level 1 – market prices (unadjusted) on the active market for similar assets and liabilities. Quoted prices
                                                                                                                                       (unadjusted) on active markets for equal assets or liabilities;
            The financial statements were prepared by complying with the fundamental accounting assumptions i.e. going
            concern and accrual basis.                                                                                             •   Level 2 - valuation model based directly or indirectly on market data. Contributions in addition to quoted
                                                                                                                                       prices  included  in  Level  1  that  are  directly  (i.e.  as  prices)  or  indirectly  (i.e.  as  derived  from  prices),
            2.2.2  Basis for measurement                                                                                               perceptible to the asset or liability;

                                                                                                                                   •   Level 3 – valuation model that is founded on market data. Contributions to an asset or liability that are not
            Company’s financial statements are prepared by applying the historical cost changed by fair value of financial             based on observable market data.
            instruments’ classifications.
                                                                                                                                   The level in the fair value hierarchy in which the fair value measurement is fully classified is determined
            2.2.3  Functional and presentation currency                                                                            on the basis of the input at the lowest level that is relevant to the fair value measurement as a whole. The
                                                                                                                                   significance of the input is for this purpose is assessed relative to the measurement of fair value as a whole.
                                                                                                                                   Level 3 measurement occurs if the fair value measurement uses detectable inputs that require significant
            The financial statements hereof are presented in euro (EUR), which is also the Company’s functional currency.
                                                                                                                                   adjustments based on undetectable inputs. Assessing the significance of an individual input compared to
                                                                                                                                   measuring fair value as a whole requires an assessment of consideration of asset-specific factors.

            58    Integrated Annual Report 2020                                                                                                                                                       Integrated Annual Report 2020  59
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