The scope of the consolidated financial statement
The EPV Energy Group consists of EPV Energy Ltd and its subsidiaries. The registered domicile of the parent company of the group. EPV En- ergy Ltd. is Vaasa. The consolidated financial statement incorporates
all subsidiaries and partnership companies. excluding Voimapiha Oy. EPV Energy Ltd owns all the shares in the A series of Suomen Energiavarat Oy. The financial statement has not been incorporated in the consolidated financial statement. since Suomen Energiavarat Oy has been founded for a certain purpose. and the shares in the A series owned by EPV do not entitle to any dividends. The partnership company Voimapiha Oy has not been incorporated in the consolidated financial statement either. since the shares in the A series owned by
EPV do not entitle to any dividends.
The basis of preparation for the consolidated financial statement
Apart from Vaskiluodon Teollisuuskiinteistöt Oy. the subsidiaries have all been incorporated in accordance with the acquisition cost method. The subsidiaries are companies founded by the parent company. Vaski- luodon Teollisuuskiinteistöt Oy has been incorporated with the equity method.
The internal business transactions of the group and the internal claims and debts have been eliminated.
The minority interests have been separated from the result of the financial year and the equity. and presented as a separate item in the income statement and the balance sheet.
The accumulated depreciation has been divided into unrestricted equity and imputed tax liabilities. The alteration in depreciation in the income statement has been divided into the result of the financial year and the change in imputed tax liabilities.
The partnership companies have been incorporated with the equity method. A share of the partnership companies’ result and alteration in depreciation excluding imputed tax liabilities equivalent to the group’s interest is included in the income statement.
In the balance sheet. the share of the partnership company’s equity and the accumulated depreciation excluding imputed tax liabilities are presented as share value.
The non-current assets have been entered in the balance sheet at the original direct acquisition cost reduced from planned depreciation and received supports. The made book values are aimed at land areas. The depreciations according to plan have been calculated according to the estimated useful economic lives.
|The depreciation periods are:|
|Intangible rights (main grid connection fees)||20 years|
|Other long-term expenses||5 – 40 years|
|Goodwill||5 – 15 years|
|Buildings and construction||14 – 54 years|
|Machinery and equipment||5 – 52 years|
|Transmission and distribution network||30 years|
The direct acquisition costs for bog areas planned for peat produc- tion concerning wasteland and standing crop have been entered under land areas. The remaining direct acquisition costs for bog areas have been entered as pending peat acquisitions.
Once the bog area is prepared. the pending peat acquisitions of the area which has been granted a permit are entered as peat resources. which are depreciated by the use of substance depre- ciation.
The expenses directly linked to the wind power projects have been entered as pending acquisitions. They are part of preparatory investments. The prerequisites for completing the projects are investigated annually and separately for each project.
Valuation of inventories
Inventories are mainly evaluated as direct acquisition costs ac- cording to the FIFO principle. Should the probable acquisition cost of the inventories be lower than the original acquisition cost on the date of the financial statements. the difference is not entered as a cost due to the absorption principle.
Emission reductions and rights
The acquisition of emission reductions and the indirect expenses in connection with these have been entered under intellectual prop- erty rights and presented as emission reductions. Gratuitous emis- sion rights are assets not included in the balance sheet.
Feed-in tariff system
The feed-in tariff system covers the fluctuating generation subsidy. or feed-in tariff. based on the electricity market price or emission rights price. granted for wind. biogas. wood chip and wood-based fuel power plants.
The subsidies granted based on the feed-in tariff system have been added to the company’s turnover.
The interest rate tying period of the floating-rate loans has been extended with interest rate swap agreements, using hedge accounting principles. The derivative agreements have not been recognised in the balance sheet. Derivatives used to manage interest rate risk have been accrued for the agreement period and they have been recognised against the interest expenses of the hedged loans. The nominal values, fair values and other key figures are presented in the notes.
The pension benefits for the company personnel have been ar- ranged for by an external pension insurance company.