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Annual Report
and
Consolidated
of
MindArk PE AB (publ)
556640-4769
Fiscal Year
2011
MindArk PE AB (publ)
Org.nr 556640-4769
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Board and Managing Director of MindArk PE AB (publ) hereby submit
statements for the financial year 2011.
Report
Activities
The company develops and operates the Entropia Universe and the Entropia Platform.
Entropia Universe is a three-dimensional virtual universe of planets with different themes and
activity. It is a universe of entertainment, social interaction, investment and
trade. Software is everywhere and at no charge to anyone with internet access.
Entropia Platform is the technology platform that drives the Entropia Universe. The platform divided
with partners developing their own, unique game content.
Market and competition
Games Industry is a few years by far the fastest growing segment of
digital media. The industry has in recent years has had a growth rate of nearly 17 percent per year
and in 2011 estimated sales have been 65 billion USD. MindArk is active in the segment
Massively Multiplayer Online Games (MMOs). The segment is estimated at more than 14
billion USD in 2012. Several trends suggest that online games will have strong growth
in the future, as well as games for mobile devices.
Entropia Universe compete with several large global MMO players. The largest western
games are World of Warcraft, Eve Online and Age of Conan, but there are many other players.
MindArks differentiation
Factors that differentiate MindArk and Entropia Universe from the competition is mainly the game
virtual economy with micro-transactions and its own currency which has a fixed value against the
U.S. Dollar, and the opportunity for participants to both deposit and withdraw money in a
safe manner.
A further differentiation is Planet Partner model, that is to say that MindArk let other
companies build their own planets in Entropia Universe and MindArk share revenues with
Planet Partners.
MindArk has now more than ten years of experience developing and managing technology for virtual economy in
interactive 3D online environment. Today MindArk offers secure micro-transactions for many simultaneous
participants interact with each other online via a PC.
The Entropia Platform MindArk has a leading position in the world.
MindArk PE AB (publ)
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MindArk and its affiliates
MindArk is the parent of a group comprising the parent company and three subsidiaries.
The parent company and two of its subsidiaries, Union Support and Operations (EUSO) and AR Universe
are located in Gothenburg. MindArk Group's third wholly-owned subsidiary, Ilunova Sa. the. Cv.,
is located in Playa del Carmen, Mexico. Ilunova has been in operation since February 2008.
Ilunova provides services to the parent company and sister company EUSO. The services include
to assist MindArk in the development of Entropia Universe and marketing to potential
partners. The company also assists EUSO with customer support, which means that users in
Entropia Universe will support most of the day.
Employees
MindArk has for years had an average of 36 employees including 5 women. The Group had
equivalent of 60 employees including 11 female employees. In Mexico, 16 employees located.
The company's CEO, David Simmonds. Other senior officers of the Company is
Magnus Eriksson (vice president), Mats Kling (CTO), Keren Edlund (Legal Counsel), David
Malcus (Development), Ms Krogh (CFO) and Bernt International Office (Human Resources).
Share
Its shares are unlisted and the total number of shares is 114 635 000 pieces.
The distribution of major shareholders is as follows:
Shareholders No. of shares Voting rights
Jan Welter Timkrans 39.1376 million 34.1%
C-G Bothén AB 25.6 million 22.3%
The other approximately 900 49.8974 million 43.6%
Total 114 635 000 100%
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Highlights during the year
Development of the technical platform - new and reinvention of gaming systems
Development of the platform continued in 2011. Many legacy systems were converted
so that they now work in CryEngine2. Examples of such systems is the makeup and the robot Beacon systems.
Several interesting new systems were added to the Entropia Universe, such as target and
reward systems, space systems and fast complex for pvp battles. Advanced technology has also
been developed to allow a precise timing for monster creation in the world which gives a
much better and more interactive experience.
Launch of Planet Arkadia
In May 2011 established a fourth planet, Planet Arkadia, in Entropia Universe. The company, which owns
Planet Arkadia, is based in Singapore. Planet Arkadia is mainly for players in
Southeast Asia.
Existing planets updated content throughout the year in order to further improve
gaming experience for the participants.
Cooperation with Ericsson
MindArk has worked with Ericsson has developed an advanced system for voice communications in
Entropia Universe. The technology allows for more in-depth social interaction than before, and
create a better experience for the participants.
Ericsson announced the news of global cooperation in May 2011. Development of the project
continues. The companies for discussions on joint marketing efforts.
Launch of Space System
In 2010 and first half of 2011 focused MindArk significant resources to developing
space system. In the middle of June 2011 launched MindArk space system in Entropia Universe.
The lands that are in different worlds is now surrounded by a comprehensive space experience.
Avatars can while their spacecraft moves through space to walk around in them, they can
land on different planets and asteroids. There, the avatars get off the ships to explore
strange new worlds and communicate and to trade with people they meet.
Further included launching new careers in space, new environments, space battles and the ability to
entrepreneurs to put their creativity to the test. A new karma system that gives rank and titles to
spacecraft with a clear distinction between evil and good introduction. Participants' choices lead them
against one or the other extreme. Either the participant is a dreaded pirate, or an abiding and
noble defenders of law and order in the universe.
New features will be added continuously to further enhance the gaming experience.
MindArk PE AB (publ)
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Planet Calypso back in AR Universe Ltd
In December 2010, signed AR Universe AB and SEE Digital Studios Ltd a contract for
transfer of the assets of AR Universe Ltd, under the name First Planet Company AB.
The purchase price was six million. SEE Digital Studios AB paid to the first six
installments of one million dollars in connection with the agreement signed, in accordance with
agreed payment plan.
However, did not show the second installment in the SEE Digital Studios Ltd would have paid in January
2011th While other agreed payments failed to materialize. Therefore, the agreement was terminated in May 2011.
The main rule in Swedish law if termination is that the title to the subject of the claim
agreement reverts to the original owner, ie the AR Universe AB. Because of the now substantially
specified conditions have been the planet Calypso, which was included in the contract, be included as assets in
consolidated balance sheet, pending the outcome of the ongoing arbitration. Once reservation has
occurred without prejudge or reserve for the company's future citations and
process documents in the pending arbitration.
Arbitration has been demanded by the SEE Digital Studios Ltd who have pleaded against
Company and its wholly owned subsidiaries AR Universe AB, Stockholm Chamber of Commerce
arbitral institutions.
The Board believes that the requirements of the SEE Digital Studios are unfounded, but would
emphasize that the outcome of civil litigation in which several disputed circumstances, and where
both oral and written evidence must be assessed and evaluated, are not clear.
Virtual land rights
In 2011 introduced virtual country cuisine at Calypso. Calypso land rights enables
avatars to become a citizen on the planet Calypso and get some of the planet's revenue. In addition,
every country has the right to give holders the right to vote in a new political system planned for development
in 2012 and the introduction 2013th Participants with land rights will thus be able to influence the
future development of Planet Calypso.
Mind Bank
MindArk has in March 2010 the FSA requested that the previously announced authorization
to establish banking operations revoked. At the board meeting in March 2011 it was decided that until further notice
cease all activities related to the project Mind Bank and promptly liquidate related
costs.
The project officer has been transferred as a resource for the President to strengthen the process of contracting
of partners. Bank project is well documented and quality assured and can at short notice
resumed with a view to deploying Banking when the necessary capital is available.
The property in Germany
The reconstruction of the company's property in Dresden, eastern Germany, was completed in January 2011. They
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capitalized refurbishment costs have thus been booked on to the building and land in
balance sheet. Amortization began in 2011. This property has been for sale for a
long time without being sold, the price was lowered from 1.4 million to 990 000. As
consequence, the book value of the property written down by 5.3 million.
Marketing
MindArk participated in several game shows during the year, for example Gamescom (Germany), CES (USA) and
TEDActive (USA). At TEDActive had MindArk also a representative on the panel. NEVERDIE
Studios, the company behind Planet ROCKtropia, launched a new play area in connection with
premiere of Universal Studios remake of The Thing. The playing area is called "Hunt The Thing"
and has proved to be popular long after the film's debut.
Planet Partner Beladcom, pioneer of game development in the Middle East, invited MindArk to
attend the World Economic Forum Dead Sea to sign agreements in the presence of Abdullah II,
King of Jordan. MindArk has also signed a partnership agreement with the Spaniard Blend. They are, in
Madrid, and game developers with a focus on PS3, Xbox 360 and PC.
Otherwise, the marketing has been limited during the year, primarily due to the company
focused on completing the conversion of legacy systems into the platform.
Income statement and equity in the Parent
Economic development during the year remained weak. One reason is a delay in
development and conversion work, another that the marketing has gone on the backburner as
because of delays in development.
A third reason for declining revenues in the SEC is that the average U.S. dollar against the Swedish
crowns in 2011 was 6.49 SEK per USD compared to 7.21 in 2010. Since the internal
currency in Entropia Universe is intrinsically linked to USD, and MindArk has not raised prices inside the
game, the company has been adversely affected by the weakening of the dollar against the Swedish krona.
Net sales excluding inter-billing against Group companies amounted to 43.7 million
million (previous year 59.9 million kronor) the parent company. Gaming liabilities, ie unused
user agents, has reduced by 3.7 million, from 68.6 million kronor to 64.9
million. This means that the turnover of the game has been greater than net deposits
shows.
Of total revenues, has 1.7 million (previous year SEK 22.5 million) added to the AR
Universe according to an agreement on profit sharing.
Operating expenses totaled excluding costs incurred for Mind Bank to about 60.3 million crowns
(Last year about 53 million). Operating profit before depreciation and Mind banking costs
(EBITDA) amounted to minus SEK 15.1 million (previous year minus SEK 11.2 million).
After expenses for the project Mind Bank and after financial items was SEK profit before
appropriations and taxes to minus SEK 29.3 million (previous year minus 25.6 million
billion). The parent company's equity at year-end to 41.3 million (previous year
49.3 million kronor).
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Cash flow and financial position of the parent
Operating cash flow is the parent company to about minus 12 million. A positive
Cash flow from investing activities of 104 691 SEK with a resulting
group contribution of 12.2 million, meant that the parent company's cash flow
was positive, an increase of 320 823 SEK during the fiscal year.
Liquid assets amounted to SEK 8.5 million.
The Group in brief
A goal for 2011 was to re-achieve positive cash flow. In 2011, completed efficiency was a
point to an end. The efficiency resulting in lower operating costs for the Group.
Consolidated revenue amounted to 60.6 million (previous year 63.5 million kronor). Operational
costs were 53 million (previous year 64 million). After the expense incurred on
Project Mind Bank, the Group profit after net financial items of minus 7.7 million
(Previous year minus 17.3 million) before tax. Note that in this year's loss included a
property write-down of 5.3 million.
Consolidated shareholders' equity at 31 December 2011 to 41 million (last year 49
million).
Cash flow amounted to plus 58 185 kronor (last year: minus 2.5 million) and cash
funds at the end of the year to 9.5 million (last year 9.7 million).
Listing of MindArks shares
The timing of the listing of the Mind Ark's shares have not been established. The company works continuously,
in preparation for the IPO in terms of documentation, organization and formality.
The AGM and EGM
Annual General Meeting held on 1 June 2011 in the company's office in Gothenburg. In addition to issues registered
decided to authorize the Board to issue up to 25% of
share capital, or a maximum of 28,658,750 shares for a cash payment. Board has not exercised
authorization during the fiscal year. Re-election was also made by Board members.
The Meeting resolved that the Board should not have any substitute.
On September 19, 2011 an Extraordinary General Meeting, also on the company's premises. It was decided
vacancy caused by resignation of the then current Board and a new board was elected. Jan Welter Timkrans elected
Chairman and the members were Sven Sandberg and Michael Zolotas.
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Significant events after year-end
Economic development
Net Deposits in PED in Entropia Universe first quarter of 2012 is approximately 60% higher than
net deposits first quarter of 2011. If deposits which may have been used to purchase
land rights are excluded, the net deposits are 16% lower than first quarter 2011. However, it should
considered to play the debt has been reduced by more than 1.1 million. This means that many purchases
of land rights may have made money already invested in Entropia Universe. Net Deposits in USD
without land rights is minus 6% in the first quarter of 2012 to 2011th Total revenues for the Group
is 70% higher.
Cash flow and liquidity
Cash flow amounts to about 740 plus 000 in the first quarter of 2012. The property of
Dresden is expected to be disposed of during the year and improve liquidity.
Soft Launch of Cyrene
Creative Kingdom, a Thai company known for global success in architecture and
urban planning, has created the planet Cyrene. The planet, the fifth in the Entropia Universe,
soft launched on 1 May 2012.
All countries Calypso dishes sold
In April 2012 MindArk sold the remaining Calypso land rights. Land rights is now trading between
players in the auction system in Entropia Universe.
Agreements with Knowit on the development of app
MindArk signed in April 2012 agreement with Knowit on developing an app for mobile devices.
The app will make available a subset of the functionality of the Entropia Universe in mobile devices,
such information, auction management and production of virtual objects. An object of the
the app is to increase customer loyalty, ie. reduce the relatively high proportion of participants who become inactive.
Development takes place on Android, Android tablet, iPhone and iPad.
MindArk also intends to develop apps that are easy and fun to use and has the potential
to reach a mass market to a far greater degree than Entropia Universe today. The company will
Therefore, to develop apps with a limited amount of play features of mobile unit and a
beränsad variety of functions in Mind Ark's technology platform. MindArk evaluate their own ideas and
also looking for opportunities to license or acquire rights to unique spelappar which in combination
with the company's technology is expected to have great potential.
In general, the apps provide MindArk new revenue from both paid download and from using
of the games features in apps that are based on features of the technology platform. In addition,
Apps by providing simple entry-level products into significantly lower costs of recruiting
new users to Entropia Universe.
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Recruitment of Management
In May 2012 recruited MindArk Klas Moreau as Technical Director. It is a newly created position
with focus on special technology projects, including developing apps for mobile devices. Klas
Moreau is from the position as Head of Business Unit Command, Control and
Applications at Ericsson.
Resignation from the Board
Michael Zolotas has for personal reasons requested withdrawal from the Board in May 2012. Successor to
Michael Zolotas will be elected at the Annual General Meeting.
Expected development
In 2012, MindArk will focus on the following key projects:
Improve the performance of existing gaming systems, and introduce older game systems that have
not established after conversion to CryEngine2.
Develop new, innovative game systems, and provide member functions for mobile devices, and
for increased customer loyalty, both to reach new and broader customer groups.
Intensify marketing of the Entropia Universe to inactive participants in our database,
with current participants and to potential new participants.
Simplify for potential new participants to become active in the Entropia Universe.
These projects are expected to give positive development for MindArk, Entropia Universe and its
Planet Partners in 2012 and beyond.
MindArk PE AB (publ)
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Multi-year (thousand)
Group 2011 2010 2009 2008 2007
Net 45 993 50 796 66 386 66 625 69 709
Profit after depreciation -7 396 -16 328 1 026 11 562 17 074
Profit after financial items -7 688 -17 331 -1 200 12 711 18 108
Assets 51 140 94 948 77 785 78 292 68 331
Shareholders' equity 40 999 49 072 63 468 64 475 48 027
Fixed assets 30 974 41 949 51 502 33 608 13 711
Parent 2011 2010 2009 2008 2007
Net 44 752 32 423 50 664 66 625 69 709
Profit after depreciation -29 072 -24 866 -980 11 296 17 074
Profit after financial items -29 288 -25 592 -3 051 12 687 18 108
Net profit -23 677 -11 704 -1 651 7 345 9 090
Assets 60 111 65 865 77 002 78 316 68 331
Shareholders' equity 41 337 49 290 54 912 55 372 48 027
Untaxed reserves 0 0 11 717 12 731 10 518
Fixed 34 962 46 943 52 851 36 030 13 711
Calculation of Key Ratios, see Accounting and valuation principles.
Proposed distribution of profit
The Board proposes that the profits available (billions):
Retained earnings 39,452,016
premium reserve 24,365,295
Loss for the year -23,677,105
40,140,206
distributed so that
carried forward 40,140,206
Consolidated and Parent Company results and financial position are shown by subsequent resultatoch
balance sheets and cash flow statements with supplementary information.
MindArk PE AB
Org.nr 556640-4769
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The Group
Profit and loss
Note 2011-01-01
-2011-12-31
2010-01-01
-2010-12-31
Net 1 45 993 394 50 796 366
Other operating income 2 14 553 269 12 746 925
60 546 663 63 543 291
Operating Expenses
Other external costs 3 -20 703 706 -25 062 810
Staff costs 4, 5 -32 360 133 -38 936 078
Depreciation and amortization of tangible and
intangible assets -13 594 905 -9 315 549
Mind Bank - accrued expenses -1 283 924 -6 556 387
-67 942 667 -79 870 823
Operating -7 396 004 -16 327 532
Income from financial investments
Income from securities -55 538 -145 630
Other interest and similar income 79,030,246,098
Exchange differences -247 454 -993 761
Interest expense and similar items -68 446 -110 488
Profit after financial items -7,688,413 -17,331,314
Income taxes -156 460 -101 472
Deferred taxes 0 3,081,571
Profit -7 844 873 -14 351 215
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The Group
Balance Sheet
Note 2011-12-31 2010-12-31
Assets
Fixed assets
Intangible assets
Planet Calypso 6:01 a.m. 714 232 0
The platform Entropia Universe 7 14 166 608 19 479 086
Other intangible assets 8 123 100 236 620
16 003 940 19 715 706
Property, plant and equipment
Land and buildings 9 8 824 308 1 936 734
Equipment and computers 10 3 764 764 6 065 636
Construction in progress and advance payments
tangible fixed assets 11 0 12 590 911
12 589 072 20 593 281
Financial assets
Loans MindArkkoncernens profit-sharing foundation 16 900 0
Other receivables 12 2 363 836 1 639 858
2 380 736 1 639 858
Total assets 30 973 748 41 948 845
Current assets
Inventories m m
Finished goods and merchandise 13 467 165 555 180
Advances to suppliers 44 661 0
511 826 555 180
Short-term receivables
Accounts receivable 1 294 223 765 388
Claims on payment intermediaries 14 1 822 809 1 377 814
Current tax assets 2 110 717 1 360 469
Other receivables 15 485 487 35 188 427
Prepayments and accrued income 16 4 471 545 4 092 466
10 184 781 42 784 564
Cash and cash equivalents 9 469 852 9 659 121
Total current assets 20 166 459 52 998 865
Total assets 51 140 207 94 947 710
MindArk PE AB
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The Group
Balance Sheet
Note 2011-12-31 2010-12-31
Equity and liabilities
Equity 17
Share capital (114 635 000 shares) 1.14635 million 1.14635 million
Restricted reserves 49 999 49 999
Unrestricted reserves 47 647 146 62 226 456
Profit -7 844 873 -14 351 215
Total equity 40 998 622 49 071 590
Long-term liabilities 18
Liabilities to credit institutions 332 818 456 337
Current liabilities
Liabilities to credit institutions 626 680 788 800
Accounts payable 1 049 064 3 724 850
Current tax liabilities 661 717 92 595
Other liabilities 3 886 473 2 472 364
Accruals and deferred income 19 3 584 833 38 341 174
9 808 767 45 419 783
Total equity and liabilities 51,140,207 94,947,710
Pledged None None
Contingent liabilities 20
Guarantees 1 054 957 1 327 674
Unexpended user agent 64 900 000 68 600 000
65 954 957 69 927 674
MindArk PE AB
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The Group
Cash Flow Statement
Note 2011-01-01
-2011-12-31
2010-01-01
-2010-12-31
Operating activities
Receipts from customers 59 029 701 63 196 564
Payments to suppliers and employees - 58,131,315 -68,979,072
Interest received 79,030,246,098
Interest paid - 68 446 -110 488
Income taxes paid - 337 586 1,299,857
Cash flow from operating activities 571 384 -4347041
Investing 21
Selling intangible assets 0 5,115,596
Investments in tangible fixed assets -559 560 -2631667
Tangible fixed assets sold 82 344 9805
Investments in Other tangible fixed assets 0 -164 276
Disposals / repayments Other financial fixed assets 249 656 291 199
Cash flow from investing activities -227 560 2,620,657
Financing
Increase in long-term liabilities 134 670 0
Amortization -420 309 -742 359
Cash flow from financing activities -285 639 -742 359
Cash flow for the 58 185 -2468743
Cash and cash equivalents at beginning of year 9,659,121 13,121,624
Exchange rate changes on cash and cash equivalents -247 454 -993 761
Cash and cash equivalents at end of year 22 9 469 852 9 659 121
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Parent
Profit and loss
Note 2011-01-01
-2011-12-31
2010-01-01
-2010-12-31
Net 1 44 752 222 32 423 424
Other operating income 2,411,898 9,367,569
45 164 120 41 790 993
Operating Expenses
Other external costs 3 -37 074 043 -31 528 834
Staff costs 4, 5 -23 320 025 -21 511 592
Depreciation and amortization of tangible and
intangible assets -12 557 901 -7 059 775
Mind Bank - accrued expenses -1 283 924 -6 556 387
-74 235 893 -66 656 588
Operating income 23 -29 071 773 -24 865 595
Income from financial items
Income from securities and receivables
as fixed assets -55 538 -145 630
Other interest and similar income 156 420 168 005
Interest expense and similar items -4 -2609
Exchange differences -317 287 -745 979
-216 409 -726 213
Profit after financial items -29 288 182 -25 591 808
Allocations 24 0 11 717 000
Profit before tax -29 288 182 -13 874 808
Tax on received / paid Group 5,611,077 2,170,333
Net income -23 677 105 -11 704 475
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Parent
Balance Sheet
Note 2011-12-31 2010-12-31
ASSETS
Fixed assets
Intangible assets
The platform Entropia Universe 7 14 166 608 19 479 086
Other intangible assets 8 123 100 236 620
14 289 708 19 715 706
Property, plant and equipment
Land and buildings 9 8 662 112 1 936 734
Equipment and computers 10 2 061 204 3 491 831
Construction in progress and advance payments
tangible fixed assets 11 0 12 590 911
10 723 316 18 019 476
Financial assets
Shares in Group companies 25, 26 7 568 417 7 568 417
Loans MindArkkoncernens profit-sharing foundation 16 900 0
Other receivables 12 2 363 836 1 639 858
9 949 153 9 208 275
Total assets 34 962 177 46 943 457
Current assets
Inventories m m
Finished goods and merchandise 13 467 165 555 180
Advances to suppliers 44 661 0
511 826 555 180
Short-term receivables
Trade receivables 67,478,585,221
Claims on payment intermediaries 1 822 809 1 377 814
Receivables from affiliated companies 9,330,613 3,319,384
Current tax assets 139 363 192 013
Other receivables 15 266 932 1 058 391
Prepayments and accrued income 16 4 158 433 3 354 432
15 785 628 9 887 255
Cash and cash equivalents 8 482 546 8 479 010
Total current assets 24 780 000 18 921 445
TOTAL ASSETS 59 742 177 65 864 902
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Parent
Balance Sheet
Note 2011-12-31 2010-12-31
EQUITY AND LIABILITIES
Equity 17
Restricted equity
Share capital (114 635 000 shares) 1.14635 million 1.14635 million
Statutory reserves 50 000 50 000
1 196 350 1 196 350
Non-restricted equity
Share premium 24 365 295 24 365 295
Profit or loss 39 452 016 35 432 677
Net income -23 677 105 -11 704 475
40 140 206 48 093 497
Total equity 41 336 556 49 289 847
Current liabilities
Accounts payable 955 969 1,534,661
Due to group companies 0 10,101,858
Other liabilities 12 734 392 1 456 289
Accruals and deferred income 19 4 715 260 3 482 247
Total current liabilities 18 405 621 16 575 055
TOTAL EQUITY AND LIABILITIES 59 742 177 65 864 902
Pledged None None
Contingent liabilities 20
Guarantees 1 054 957 1 327 674
Unexpended user agent 64 900 000 68 600 000
65 954 957 69 927 674
MindArk PE AB
Org.nr 556640-4769
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Parent
Cash Flow Statement
Note 2011-01-01
-2011-12-31
2010-01-01
-2010-12-31
Operating activities
Receipts from customers 48 117 528 41 154 773
Payments to suppliers and employees -60 298 853 -52 854 425
Interest received 156 420 168 005
Interest paid -4 -2609
Income taxes paid 52 650 2 506 998
Cash flow from operating activities -11 972 259 -9 027 258
Investing 21
Investments in tangible fixed assets -227 309 -2240742
Tangible fixed assets sold 82 344 0
Investments in other financial
fixed assets 0 -164 276
Divestments / repayments of Other Financial
fixed assets 249 656 291 199
Cash flow from investing activities 104 691 -2113819
Financing
Received / paid Group 12 188 391 8 068 106
Cash flow from financing activities 12 188 391 8 068 106
Cash flow 320 823 -3072971
Cash and cash equivalents at beginning of 8.47901 million 12.29796 million
Exchange rate changes on cash and cash equivalents -317 287 -745 979
Cash and cash equivalents at end of year 22 8 482 546 8 479 010
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Supplementary information
Accounting and valuation principles
General information
Annual Report has been prepared in accordance with Accounting Standards Board
advice except for the accounting of leases where RR 6:99
has been applied.
Receivables are carried at the amounts expected to be received.
Other assets and liabilities are stated at acquisition cost, unless otherwise indicated.
The accounting policies are unchanged from the previous year.
Revenue recognition
The income is recognized at fair value of what the company has received or will receive. This means that
the company reported earnings at face value (invoice amount) if they could receive compensation in
cash immediately upon delivery. Deductions are made for discounts.
Income Taxes
Reported income taxes include tax to be paid or received for the current year,
adjustments for the previous year's taxes, changes in deferred tax and interest in
associated companies.
Valuation of all tax liabilities / assets are valued at nominal amounts in accordance with the
tax rules and tax rates enacted or announced, and almost certainly
will be determined.
For items recognized in the income statement, the related
in the income statement. Tax effects of items recognized directly in equity
capital, are recognized in equity.
Deferred tax is provided using the liability method on all temporary differences
arising between the tax bases of assets and liabilities. None
temporary differences exist pertaining to current and previous financial year.
Foreign currencies
Assets and liabilities denominated in foreign currencies are valued at the closing rate.
Consolidated
Accounting
In preparing the consolidated financial statements have been taken guidance from the Financial Accounting
Recommendation RR 1:00.
~Danimal
