VVO Group plc’s financial statements have been prepared in accordance with the provisions of the Finnish Accounting Act and the Finnish Limited Liability Companies Act.
Income related to rental operations and compensation for administration costs are recognised on an accrual basis during the agreement period.
Tangible and intangible assets are recognised in the balance sheet at original acqui-sition cost less depreciation according to plan and possible impairment. Depreciations according to plan are calculated as straight-line depreciation on the basis of the estimated useful life of the assets.
The depreciation periods according to plan, based on the useful life, are as follows:
|IT hardware and software||4–5 years|
|Office machinery and equipment||4 years|
Costs that arise later are included in the book value of a tangible asset only if it is likely that the future economic benefit related to the asset will benefit the Group. Other maintenance and repair expenses are recognised as incurred through profit and loss.
Capital gains from the sale of fixed assets are recorded under other operational in-come and losses under other operational costs.
Development costs are recognised as expenses in the income statement in the finan-cial year in which they are generated.
Financial securities have been recognised at the lower of purchase price or market price on the balance sheet date.
Changes in the fair value of derivative instruments are presented in the notes to the financial statements.
Future costs and apparent losses with a reasonably estimable monetary value which will no longer generate future income and which the Group is obligated or committed to perform are recognised as expenses in the income statement and as statutory pro-visions in the balance sheet.
Appropriations consist of accumulated depreciation differences.
The pension cover of Group companies is handled by external pension insurance companies in all respects. Pension costs are recognised as costs in the income statement on an accrual basis.
The cash flow statement has been compiled on the basis of the information in the in-come statement and balance sheet and their supplementary information.
Cash and cash equivalents include bank accounts, liquid deposit notes and certificates of deposit.
All of the receivables and liabilities are euro-denominated.
Derivative instruments that hedge against the interest rate risks of long-term loans have not been entered into the balance sheet. They are reported in the notes to the financial statements.
The interest income and expenses based on derivative instruments are allocated over the agreement period and are used to adjust the interest rates of the hedged asset.