Page 71 - InterEnergo - Annual Report 2020
P. 71

Interenergo  Accounting report  Interenergo  Accounting report

 •   Sale of services: the control over services is transferred to the customer in the moment when the service   Deferred tax is provided, taking into account temporary differences between the carrying amounts of assets
 is performed. Revenue from rendered trading, energy and engineering services are recognised in the   and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets
 reporting period in which the services are performed. Revenue from services rendered is recognized   also arise from unused tax losses and unused tax credits.
 in the income statement based on the stage of completion of the transaction at the end of the reporting   Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available
 period. The stage of completion is assessed by reviewing the work performed.
            against which the asset can be utilized. Future taxable profit, on the basis of which deferred tax assets from
 •   Commission services: the Company has a contract with the parent company, where it acts as a commission   deductible temporary differences may be recognized, includes temporary differences that will arise from the
 agent who pursuant to the contract conducts electricity trading on behalf of the client, for which it charges   elimination of existing temporary tax differences if those differences relate to the same tax authority in respect
 a commission fee. The Company is under the contract entitled to a fixed monthly part of the commission   of the same taxable unit or to different taxable units that intend to repay tax liabilities or receive payment of
 and a variable part of the commission, which is determined at the end of the accounting period. During the   deferred tax assets in a set-off amount or that intend to repay tax liabilities or receive payment of deferred
 provision of services, the Company does not bear the risk of losses that would arise from the concluded   tax assets at the same time. The same criteria are adopted in determining whether existing taxable temporary
 commission transactions, as these are borne by the client. As the Company does not bear the risk of   differences support the recognition of a deferred tax asset due to unused tax losses and credits i.e.  these
 losses that must be settled by the client under the contract, the Company deemed that it acts as an agent   differences are taken into account if they relate to the same tax authority and the same taxpayer and are
 in this contract. Revenue is recognized on a net basis, in the amount of the commission as defined under   expected to be eliminated in the period or periods in which the tax loss or credit can be used.
 the contract. Revenue is recognized gradually according to the stage of completion of the enforcement   The amount of recognized deferred tax is measured based on the expected manner of realisation or settlement
            of the carrying amount of assets and liabilities using tax rates that have been enacted or substantively enacted
 Employee benefits  by the end of the reporting period. Deferred tax assets and liabilities are not discounted.
            The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and reduced to
 Salaries, allowances, paid annual leave and defined retirement benefit plans and non-cash benefit costs are   the extent that it is no longer probable that sufficient taxable profit will be available against which the related
 recognized as a liability in profit or loss or in costs related to services during the period in which they are   tax benefit can be utilized. Any such reduction shall be reversed if it is probable that sufficient taxable profit
 incurred by employees.  will be available.

 Finance income and finance costs   Accounted taxes, deferred taxes and their changes are presented separately and are not offset. Accounted tax
            receivables are offset by current tax liabilities, and deferred tax assets are offset by deferred tax liabilities if
 Finance income and finance costs comprise:  the Company has legally enforceable rights to offset accounted tax receivables with short-term tax liabilities
            and the following additional conditions are met:
 •   interest income;
            •   in case of accounted tax receivables and liabilities: the Company intends to either settle the net amount
 •   dividend income;  or liquidate the asset and settle its liability at the same time, or
 •   interest expenses;  •   in case of deferred tax assets and deferred tax liabilities: in the case of income taxes levied by the same tax
 •   expenses for impairment of investments, and  authority on the same taxable person or on different taxable persons and intended for any future period
                in which significant future payments are expected to be settled or recovered the amounts of deferred tax
 •   foreign exchange differences arising on revaluation of financial assets and financial liabilities.
                liabilities or assets, either to cash in the accounted tax receivables and settle the net amount of the tax
 Dividend income is recognized in the income statement on the date the Company obtains the right to receive   liability, or to cash and settle at the same time.
 the dividend.
            Provisions and contingent liabilities
 When calculating finance income and costs, the effective interest rate is applied to the gross carrying amount
 of the asset (when the asset is not impaired) or the amortised cost of the financial liability. For financial assets   Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past
 that were impaired after their initial recognition, financial income is calculated from the amortised cost (gross   event, which can be estimated reliably, and it is probable that an outflow of resources embodying economic
 carrying amount of the impairment loss), whereas it is recalculated from the gross carrying amount when the   benefits will be required to settle the obligation. Where the time value of money is significant, provisions are
 asset is no longer financially impaired.
            stated at the present value of the expected costs of settling the liability.
 Income tax expense  When it is unlikely that an outflow of economic benefits will be required or if the amount cannot be estimated
            reliably, a contingent liability is disclosed unless the probability of an outflow of economic benefits is low.
 Income tax for the financial year comprises current tax and changes in deferred tax assets and deferred tax   Possible liabilities, the existence of which will be confirmed only by the occurrence or absence of one or more
 liabilities. Current tax and changes in deferred tax assets and liabilities are recognized in the income statement,   future events, are also disclosed as contingent liabilities, unless the probability of an outflow of economic
 except to the extent that it relates to items recognized directly in other comprehensive income or directly in   benefits is low.

 Current tax is the tax expected to be payable on the taxable profit for the financial year, using tax rates enacted
 or substantively enacted at the reporting date, and includes any adjustments to tax liabilities in respect of
 previous years.

 68  Integrated Annual Report 2020                                             Integrated Annual Report 2020  69
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