Page 30 - Annual Report KELAG Group 2018
P. 30

Natural gas stock is measured at the lower of cost or net realisable value using the FIFO method.
           For recognition at net realisable value, it is assumed that natural gas stock will be withdrawn
           steadily over the three months after the reporting date. Hence, the net realisable value is the
           average of the market prices for the January to March front-months gas forwards (monthly band
           deliveries) quoted at NetConnect Germany.


           Materials and supplies are measured at the lower of cost or net realisable value on the reporting
           date. For marketable inventories, this is the current market price. For all other inventories, the net
           realisable  value  can  be  derived  from  the  planned  income  less  costs  yet  to  be  incurred.
           Measurement is based on the moving average price method.

           Services not yet invoiced and work in process are measured at cost, which comprises direct labour
           and materials costs as well as an appropriate portion of overheads.

           The cash and cash equivalents item in the statement of financial position comprises cash in hand,
           bank balances as well as highly liquid short-term deposits that can be converted into a fixed
           amount of cash at any time and are only subject to immaterial risks of changes in value.

           Cash and cash equivalents as reported in the statement of cash flows comprise the items defined
           above.

           Financial liabilities are recognised at fair value less transaction costs. A premium, debt discount or
           other difference between the amount received and the repayment amount is spread over the
           term using the effective interest method and recognised in the financial result.


           The provisions for current pensions, claims to future pensions and pension-related obligations are
           calculated using the projected unit credit method in accordance with IAS 19. The Group fully
           recognises the remeasurement gains or losses on the net liability from defined benefit plans in
           other comprehensive income in the period in which they occur. Any remeasurement gain or loss
           on the net liability from defined benefit plans is transferred directly to accumulated profits/losses
           and not reclassified to profit or loss in subsequent periods. The net interest expense is recorded
           under interest expenses in the income statement.


           Pension obligations are determined on the basis of actuarial reports. The biometrical assumptions
           used  for  the  first  time  in  these  consolidated  financial  statements  were  the  “AVÖ  2018-P  –
           Rechnungsgrundlagen  für  die  Pensionsversicherung”  for  employees.  The  “AVÖ  2008-P  –
           Rechnungsgrundlagen  für  die  Pensionsversicherung”  were  still  used  as  the  basis  for  these
           calculations  in  the  prior  year. This  change  in  the  assumptions  caused  an  increase  of  around
           EUR 12m  in  the  KELAG  Group’s  social  capital,  the  share  of  which  posted  in  the  consolidated
           income statement comes to around EUR 0.8m. The effect from the new assumptions is therefore
           mainly recorded directly in equity through other comprehensive income. Apart from death and
   25   26   27   28   29   30   31   32   33   34   35