Page 60 - InterEnergo - Annual Report 2020

Interenergo Accounting report Interenergo
2. Notes to the company’s financial
statements
2.1 Reporting entity
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
of Central and South-Eastern Europe. The Company’s core business goal and fundamental responsibility is a
safe and business-efficient supply of electricity, implementation of investment-related projects that promote
economically, environmentally and socially responsible exploitation of renewable energy sources, and provision
of energy services.
The accompanying financial statements of the Company for the financial year ended 31 December 2020 give
a true and fair view of its financial position.
The financial statements, compiled for the period from 1 January 2020 to 31 December 2020, were approved
by the Management Board on 19 May 2021.
Interenergo, d.o.o. is the subsidiary of the Kelag company, which holds a 100 percent share, yet issued no
securities for trading on a regulated market. Accordingly and in accordance with Paragraph 6, Article 56 of the
Companies Act (ZGD-1), Interenergo is not obliged to compile a consolidated annual report (excluded company)
as it is included in the consolidation of the Kelag controlling company. The Company will publish the translation
of the consolidated annual report of the Kelag Group within one month after its publication.
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
as the parent company of a larger group of companies at the address Arnulfplatz 2, Postfach 176, Klagenfurt
am Wörthersee, Austria.
2.2 Basis for preparation of financial statements
2.2.1 Compliance statement
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.
The financial statements were prepared by complying with the fundamental accounting assumptions i.e. going
concern and accrual basis.
2.2.2 Basis for measurement
Company’s financial statements are prepared by applying the historical cost changed by fair value of financial
instruments’ classifications.
2.2.3 Functional and presentation currency
The financial statements hereof are presented in euro (EUR), which is also the Company’s functional currency.
58 Integrated Annual Report 2020
Accounting report
All financial information is presented in rounded to one unit, which may result in insignificant deviations in
the tables.
2.2.4 Use of estimates and judgements
Judgements, assumptions and uncertainty related to estimates
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.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and in any future periods affected.
As assessments and assumptions are subject to subjective judgment and some degree of uncertainty, subsequent
actual results may differ from estimates. Changes in accounting estimates, judgments and assumptions are
recognized in the period in which the estimates are changed, if the change affects only that period, or in the
period of the change and in future periods, if the change affects future periods. Information on assessments,
assumptions and uncertainties associated with estimates is included in the following disclosures:
• Note 2.4.3 – assessing the impairment of investments in subsidiaries and loans to other subsidiaries: key
assumptions used in determining the recoverable value;
• Note 2.4.16 – assessing whether the company acts as an agent or principal in implementing the contract
on commission services;
• Note 2.4.16 – assessing whether revenue are recognised immediately or gradually;
• Note 2.5.1 – measuring expected credit loss (ECL) from trade receivables and contract assets: key
assumptions in determining the loss rate.
Fair value measurement
Numerous accounting policies and disclosures require the measuring of fair value of financial assets, non-
financial assets and liabilities.
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.
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:
• 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;
• 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),
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
based on observable market data.
The level in the fair value hierarchy in which the fair value measurement is fully classified is determined
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
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.
Integrated Annual Report 2020 59