Page 86 - Restamax Plc Annual Report 2017

book value will mostly be generated by the sale of the asset separate asset item when the reimbursement has been
item instead of continued use. The prerequisites for clas- practically ensured. The provision amounts are estimated
sification as held for sale are considered to be met when on each closing date, and their amounts are adjusted to
the sale is highly probable and the asset item (or disposal correspond to the best possible estimate at the moment
group) can be immediately sold in its present condition of inspection. Changes in the provisions are entered in
using common terms, and when the management is the income statement under the same item as the one
committed to the sale and the sale is expected to take place where the provision was originally recorded.
within one year from the classification.
A provision will be recorded for a contract that generates
Immediately before the classification, the asset items a loss when the necessary expenditures required to fulfil
classified as held for sale or the asset and liabilities of the the obligations outweigh the benefits received from the
disposal groups are measured according to the applicable contract.
IFRS standards. Starting from the classification, the asset
items held for sale (or the disposal group) are measured at A contingent liability is a possible liability arising from
book value or fair value less the costs to sell, whichever is past events whose existence will only be confirmed when
lower. The depreciation of these asset items is discontinued an uncertain event outside the Group’s control is realised.
at the moment of classification. A present obligation that is not likely to cause a payment
obligation, or whose size cannot be reliably determined,
Asset items in the disposal group that are not within the is also considered to be a contingent liability. Contingent
scope of the measurement rules of the IFRS 5 standard, as liabilities are presented in the notes.
well as liabilities, are measured according to the applicable
IFRS standards even after the moment of classification. . Income taxes

Discontinued operation refers to a part of the Group that The tax costs in the income statement are based on the
has been discontinued or classified as held for sale and that taxable income from the financial period and deferred
meets the classification criteria for discontinued operation tax. Taxes are recorded through profit or loss, except
under IFRS 5. in cases where they are directly related to items regis-
tered as equity or other items in the total comprehensive
Net income for discontinued operations is presented as a income. In these cases, their tax effects are also recorded
separate item in the Group’s statement of comprehensive as equity in these items. Tax based on the taxable income
income. Asset items held for sale, disposal groups, items from the financial period is calculated using the taxable
related to asset items held for sale that are recorded in income and the applicable tax rate in each country.
other items of the comprehensive income and liabilities The taxes are adjusted by any taxes related to previous
included in the disposal group are presented separately financial periods.
from the other items on the balance sheet.
Deferred tax is calculated for any temporary differences
EBITDA and operating profit between carrying amounts and tax bases. The largest
temporary differences are generated by the differences
The standard IAS 1 Presentation of Financial Statements between the carrying amounts and tax bases of property,
does not define the concepts of EBITDA or operating profit. plant and equipment, fair value adjustments of assets
The Group has defined them in the following way: EBITDA and liabilities during business combinations, and unused
is the net sum created when other operating income is tax losses. Deferred taxes have been calculated using the
added to turnover, and the acquisition costs of materials tax rates that have been enacted or substantively enacted
and services adjusted by the changes in the inventory, on the date of the closing of the books.
staff expenses and other operating costs are deducted.
Deferred tax assets are recorded up to the probable
All income statement assets other than those mentioned amount of future taxable income against which the
above are presented below EBITDA; operating profit is the temporary difference can be utilised. The prerequisites
resulting net sum when depreciations and any impair- for recording deferred tax assets are estimated in this
ment loss is deducted from EBITDA. Exchange differences respect on each closing date.
are included in EBITDA, if they are due to items related
to operating activities; otherwise, they are entered under However, deferred tax liabilities are not recorded when
financial items. the asset item or liability in question is one that would
be originally entered into the bookkeeping, there is no
Provisions and contingent liabilities combination of business operations involved, and the
entry of such an asset item or liability does not affect the
A provision is entered when the Group has a judicial or result of the bookkeeping or the taxable income at the
constructive obligation for payment on the basis of a past time when the business transaction takes place.
event, the realisation of the obligation is probable and the Deferred tax assets and liabilities are offset when the
size of the obligation can be reliably estimated. Provisions Group has a legally enforceable right to offset the current
are measured at the present value required to cover the tax assets and liabilities, and when the deferred tax assets
obligation. The discount factor used for calculating the and liabilities are related to taxes on income collected by
present value is selected in a manner where it is repre- the same recipient, either from the same taxpayer or
sentative of the market opinion of the value of money different taxpayers, when the aim is to realise the asset
over time and the risks related to the obligation. If a part and liability in their net amounts.
of the liability can be received as reimbursement from
a third party, the reimbursement will be registered as a

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