Gasum Annual Report 2010

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NOTES TO THE FINANCIAL STATEMENTS CONSOLIDATED ACCOUNTING PRINCIPLES Gasum Oy is the parent company of the Gasum Group and has its registered office in Espoo, Finland. Copies of the consolidated financial statements are available from Gasum Oy’s head office at Miestentie 1, FI-02150 Espoo, Finland and on the company’s website at www.gasum.fi. The consolidated financial statements include the accounts of the parent company Gasum Oy and of the subsidiaries Gasum Energiapalvelut Oy, Helsingin Kaupunkikaasu Oy, Gas Exchange Ltd, Gasum Paikallisjakelu Oy and Gaasienergia AS. Gaasienergia AS is fully owned by Gasum Paikallisjakelu Oy. No separate consolidated accounts have been prepared for the subgroup. The consolidated financial statements are based on the acquisition cost principle.The difference between the acquisition cost and equity at the time of acquisition, arising from the elimination of mutual shareholdings, has been treated as goodwill on consolidation and is depreciated over its estimated lifetime subject to a maximum of 20 years. Intragroup transactions have been eliminated in the income statement and balance sheet. The associated company has been consolidated using the equity method. Share of the associated company’s result for the financial year based on the ownership rate is reported as a separate item under financial income and charges. Goodwill arising from the acquisition the associated company is included in the value of the associated company’s shares and depreciated in the same manner as goodwill on consolidation over 20 years. The financial statements have been prepared in accordance with the laws and regulations governing their preparation in Finland. The company’s financial year is the same as the calendar year. RECOGNITION OF REVENUE FROM SALES Revenue from the sale of gas is recognised once the gas has been delivered. Revenue from services is recognised once the service has been delivered. FOREIGN CURRENCY ITEMS Debtors and creditors denominated in foreign currency have been valued at the rates quoted by the European Central Bank at the closing date. VALUATION OF FIXED ASSETS Fixed assets are recognised in the balance sheet at acquisition cost less depreciation according to plan. Planned depreciation is booked as straight-line depreciation based on the economic life of tangible and intangible assets. Grants received are recognised as decrease in acquisition cost. A total of €386,715 of project wages and related labour costs have been recognised under acquisition cost of tangible and intangible assets during the accounting period. STOCKS Stocks have been valued in accordance with the FIFO principle at the direct acquisition cost, or replacement cost or the probable recoverable amount, whichever is the lowest. PENSION COSTS Pension cover for Group employees has been arranged through external pension insurance companies. Statutory pension costs are recognised in the year of accrual. Mandatum Life Insurance Company’s supplementary pension cover resulted in costs totalling €1,674,609.96 during the period. Supplementary pension cover is recognised on a cash basis. MANDATORY PROVISIONS The emission allowances granted were not exceeded during the financial year, so no provision is necessary.The actual emission amounts of the year were below the granted and bought amounts by 30,728 tonnes. Based on the market price level of 31 December 2010, this makes an off-balance-sheet asset of €437,566.72. DEFERRED TAX LIABILITY The depreciation difference in the consolidated financial statements has been divided into distributable equity and deferred tax liability. Group The economic lifetime expectancies used are: Buildings and structures Other tangible assets Machinery and equipment Other long-term expenditure Intangible rights and assets Goodwill on consolidation 2010 15–40 yrs 20–40 yrs 3–25 yrs 5–40 yrs 1–10 yrs 20 yrs 2009 15–40 yrs 20–40 yrs 3–25 yrs 5–40 yrs 1–10 yrs 20 yrs 2010 15–40 yrs 20–40 yrs 3–15 yrs 5–10 yrs 1–5 yrs Parent company 2009 15–40 yrs 20–40 yrs 3–15 yrs 5–10 yrs 1–5 yrs 39 

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