Page 111 - KELAG Annual Report 2019
P. 111

The corporate income tax rate applicable to the parent company comes to 25.0%. The following
           income tax rates were used for the fully consolidated entities:

            Bosnia and Herzegovina                           10.0             10.0
            Bulgaria                                         10.0             10.0
            Italy                                            27.9             27.9
            Kosovo                                           10.0             10.0
            Croatia                                       12.0/18.0        12.0/18.0
            Northern Macedonia                               10.0             10.0
            Montenegro                                        9.0              9.0
            Austria                                          25.0             25.0
            Romania                                          16.0             16.0
            Serbia                                           15.0             15.0
            Slovenia                                         19.0             19.0
            Czech Republic                                   19.0             19.0

           Derivative financial instruments are measured at fair value, although the measurement of those
           relating to energy is based on market prices and a forward price curve derived from market prices.

           Unrealised  measurement  gains and  losses  are  generally  recognised  in  the  income  statement
           unless the requirements for hedge accounting pursuant to IFRS 9 apply. In order to be able to
           apply  hedge  accounting,  there  must,  among  other  things,  be  evidence  of  an  economic
           relationship between a hedging instrument and hedged item. Furthermore, the credit risk may
           not dominate the value changes of the contracts concerned.

           KELAG applies the hedge accounting regulations when hedging the price risk from future sales
           and purchase transactions relating to energy, designating derivatives or hedging instruments
           using cash flow hedges. In the case of cash flow hedges, the unrealised measurement gains and
           losses  from  hedging  instruments  are  first  recognised  in  other  comprehensive  income  and
           “parked”  in  a  separate  valuation  reserve  in  equity  They  are  only  reclassified  to  the  income
           statement when the hedged item has an effect on profit or loss. If the hedged forecast transaction
           leads to the recognition of a non-financial asset or liability, the amounts parked in equity are
           netted with the carrying amount upon initial recognition of the asset or liability. Any ineffective
           portions of the hedge result in some measurement changes of the hedging instruments being
           recognised in the income statement.

           Derivative financial instruments with positive fair values are recognised in trade receivables as
           well as other receivables and assets, those with negative fair values in trade payables and other
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