Page 187 - KELAG Annual Report 2019
P. 187

 We evaluated the calculations performed by the Group in assessing whether any indication that intangible assets and
                PPE may be impaired or an impairment loss recognoized in prior periods may no longer exist on a sample basis and
                critically questioned the results and compared them with our knowledge gained during the audit of the consolidated
                financial statements.
               For those cash generating untis (CGU), for which the value in use was was determined, we assessed on a sample basis the
                measurement method, the planning assumptions and parameters in consultation with our valuation specialists for
                selected matters. We evaluated on a sample basis the assumptions used to determine the interest rates by comparing
                them with market and industry specific references and agreed the planning used in the calcualtions to the mid-term
                planning approved by Management.
               For the purpose of assessing the reasonableness of the Company’s forecasts, we compared – on a sample basis - the
                cashflows of 2019 as well as current planning figures with the forecast figures of prior periods. We discussed deviations
                noted with Management.
               We agreed the relevant carrying amounts to the fixed assets subledger.

           Refer to note 1 to the consolidated statement of comprehensive income and note 18 to the consolidated statement of
           financial position.

           The consolidated statement of profit or loss reports total revenue of EUR 1,300.1 million.

           Accrued revenue from end customer billing mainly relates to revenue generated from the sale of electricity, gas, heat and
           system charges to industrial and business customers as well as households and other energy supply companies.

           In line with industry practice, this revenue is recognized based on actual, already metered and billed usage and by accrual
           of already delivered but not yet metered or billed revenue.

           Revenue is determined by means of complex calculations from customer billing systems and accrued for the energy
           amount delivered during the period. Revenue is recognized when a billable delivery or service has been made to the

           Due to the complexity of the systems required for the appropriate  recording and accrual and the impact of ongoing
           changes in business, price and tariff models as well as the underlying assumptions and the large amounts of processed
           data there is a risk that revenue is over- or understated.

           We assessed accrued revenue from end customer billing as follows:

               We evaluated the relevant processes and controls implemented by the Company for the recognition of revenue from the
                end customer business including the respective IT systems using the expertise from our IT specialists. We evaluated key
                controls implemented to determine quantities and prices for operating effectiveness.
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