Notes to the financial statements: principles
General information
The company was established in 1904 under the name of Kraftwerke Brusio AG. In 2000, Kraftwerke Brusio AG (Poschiavo) merged with AG Bündner Kraftwerke (Klosters) and Rhätische Werke für Elektrizität (Thusis) to form Rätia Energie AG. In 2010 the company was renamed Repower AG. The purpose of the company is to generate, transmit, distribute, trade in and sell energy and provide services directly or indirectly in this connection.
In the 2015 financial year, wholly-owned subsidiary Repower Schweiz AG was merged with Repower AG.
A. Accounting principles
These financial statements were prepared in accordance with the provisions of Swiss law, in particular the provisions governing commercial accounting and financial reporting (Art. 957 to 962 of the Swiss Code of Obligations).
FIRST APPLICATION OF NEW FINANCIAL REPORTING LAW
The 2015 financial statements were prepared for the first time in accordance with the provisions of Swiss financial reporting law (Title Thirty-Two of the Code of Obligations).
B. Accounting and valuation principles
The main items are recognised as follows:
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash holdings and bank and postal account balances, and are recognised on the balance sheet at nominal value.
CURRENT ASSETS WITH A STOCK EXCHANGE PRICE
Derivative financial instruments held for trading with a directly observable market price or directly observable input parameters are recognised at fair value. Fluctuation reserves are not created.
HEDGING TRANSACTIONS
Future cash flows in foreign currencies can be hedged. The corresponding derivative is recognised in profit or loss on the occurrence of the underlying transaction.
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable are recognised at nominal value and impaired if necessary. The amount at the end of the period may be subjected to a flat rate impairment at a rate accepted for tax purposes.
OTHER RECEIVABLES
Other receivables are measured at nominal values. Any counterparty risks are accounted for by means of necessary impairment.
INVENTORIES AND NON-INVOICED SERVICES
Inventories and non-invoiced services are recognised at acquisition or production cost taking account of economically necessary impairments. Otherwise impairment may be done at a rate accepted for tax purposes.
PREPAID EXPENSES AND ACCRUED INCOME/DEFERRED INCOME AND ACCRUED EXPENSES
Prepaid expenses and accrued income/deferred income and accrued expenses comprise the asset and liability items resulting from the accrual and deferral of individual items of expense and income in accordance with the accrual and matching principle. The origination costs of interest-bearing liabilities are capitalised under prepaid expenses and accrued income. Prepaid expenses and accrued income/deferred income and accrued expenses are recognised at nominal values.
FINANCIAL ASSETS AND SHAREHOLDINGS
Financial assets and shareholdings are recognised at cost taking account of necessary impairment. Financial assets and shareholdings are measured on a unit of account basis.
TANGIBLE ASSETS
Tangible assets are recognised at acquisition or production cost less accumulated depreciation and any impairment losses. Amortisation is done on a straight-line basis over the subsequent useful life.
INTANGIBLE ASSETS
Intangible assets are amortised on a straight-line basis. If there are indications of overvaluation, necessary impairments are taken into account.
CURRENT LIABILITIES
Current liabilities are recognised at nominal value.
NON-CURRENT LIABILITIES
Non-current liabilities comprise a) long-term, interest-bearing financial liabilities at nominal value and b) other non-interest-bearing long-term liabilities.
PROVISIONS
A provision is a probable liability on the basis of a past event; the amount of the liability and/or the date on which it will fall due is uncertain but can be estimated. The amount of provisions is based on the management’s assessment, and reflects the future outflows of funds that can be anticipated as of the balance sheet date.
TREASURY SHARES
Treasury shares are recognised as a negative item in shareholders’ equity on the date of acquisition, without any subsequent measurement. On resale the profit or loss is booked directly to free reserves from earnings.