Page 105 - KELAG Annual Report 2019
P. 105

proportion of services to be rendered to customers as well as a strict credit risk management and
           the dunning function.

           Natural gas stock is measured at the lower of cost or net realisable value using the FIFO method.
           For recognition at net realisable value, prices from existing contracts and from expected sales
           scenarios are used.

           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

           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 in these consolidated financial statements were the “AVÖ 2018-P – Rechnungsgrundlagen
           für die Pensionsversicherung” for employees. Apart from death and invalidity or retirement upon
           reaching the imputed pension age, the actuarial experts – based on past experience – did not
           take any other reasons for leaving the company into account, such as employee turnover or similar
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