Page 35 - KELAG Annual Report 2017
P. 35

invoiceable partial delivery has been provided to the customer. The recognition of revenue from
                                      the retail and business customer segment, which is generally invoiced once a year, is based on a
                                      deferral  in  the  statement  of  financial  position  and  simulation  of  volumes  which  have  been
                                      delivered but for which no meter reading is available yet. Revenue is recognised net of any sales
                                      deductions and VAT as well as after elimination of intercompany transactions.


                                      Earnings  from  derivative  contracts  in  energy  trade  whose  primary  purpose  is  not  a  physical
                                      delivery of energy, but the management of an energy trade item, are recognised as revenue. The
                                      underlying revenue and incidental purchasing costs are offset against each other and presented
                                      in net terms in revenue.





                                      Preparation  of  the  consolidated  financial  statements  in  accordance  with  IFRSs  requires
                                      judgements in the application of accounting policies. In addition, assumptions must be made by
                                      management about future developments that can materially affect the recognition and value of
                                      assets  and  liabilities,  the  disclosure  of  other  obligations  as  of  the  reporting  date  and  the
                                      presentation of income and expenses during the financial year.


                                      The following section provides a description of material judgements exercised and assumptions
                                      made regarding future developments on which these IFRS consolidated financial statements are
                                      based.





                                      If an equity investment is less than 20%, the company assumes that it has no significant influence
                                      unless this influence can be clearly demonstrated.

                                      For KELAG, it is an indisputable certainty that significant influence in accordance with IAS 28.6 is
                                      established by the granting of a contractually guaranteed dilution and squeeze-out protection
                                      clause and the joint realisation of significant capacity increases in the area of power plants as well
                                      as the provision of significant technical information and the appointment of a member of the
                                      Supervisory Board and the related participation in decision-making processes.

                                      As of every reporting date, KELAG assesses the need to include immaterial subsidiaries and equity
                                      investments in the consolidated financial statements on the basis of quantitative and qualitative
                                      criteria.
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