THE MINISTRY OF FINANCE Pursuant to Article 15 paragraph 4 of the Accounting Act (Official Gazette 109/07), the Minister of Finance hereby issues the 1/9 ORDINANCE ON THE LAYOUT AND THE CONTENTS OF THE ANNUAL ACCOUNTS Article 1 (1) This Ordinance lays down the layout and the contents of annual accounts for undertakings in accordance with the provision of Article 3 and Article 16, paragraph 2, for legal and natural persons referred to in Article 2, paragraph 3 of the Accounting Act, with the exception of undertakings referred to in Article 15, paragraph 2 of the Accounting Act. (2) Undertakings and persons referred to in paragraph 1 of this Article shall draw up annual accounts with the layout and the contents as specified in the Annex to this Ordinance and in accordance with provisions of the Accounting Act and this Ordinance. Article 2 (1) Undertakings referred to in Article 3 and Article 16, paragraph 2, legal and natural persons referred to in Article 2, paragraph 3 of the Accounting Act, with the exception of undertakings referred to in Article 15 paragraph 2 of the Accounting Act, shall draw up: 1. the balance sheet, 2. the profit and loss account, and 3. the notes on the annual accounts in accordance with provisions of Article 4 of this Ordinance. (2) In addition to statements referred to in the above paragraph, undertakings referred to in Article 3, paragraph 3 and 4 and Article 16, paragraph 2 of the Accounting Act, with the exception of undertakings referred to in Article 15, paragraph 2 of the Accounting Act, shall draw up: 1. the cash flow statement, using the indirect or direct method, and 2. the statement of retained earnings. Article 3 Information in the balance sheet, the profit and loss account, the cash flow statement and the statement of retained earnings shall be expressed in HRK for the current and the preceding year. Article 4 The notes on the annual accounts shall comprise additional and supplementary information, which are not expressed in the balance sheet, the profit and loss account, the cash flow statement the statement of retained earnings in accordance with the provisions of the relevant financial reporting standards. Article 5 (1) Undertakings obliged to apply the International Financial Reporting Standards shall draw up annual accounts with the layout and contents as specified in the Annex to
this Ordinance in accordance with the corresponding provisions of the International Financial Reporting Standards. (2) Undertakings obliged to apply the Croatian Financial Reporting Standards shall draw up annual accounts with the layout and contents as specified in the Annex to this Ordinance in accordance with the corresponding provisions of the Croatian Financial Reporting Standards. (3) On-balance-sheet item of the annual account under No. VII Minority interest shall be completed only by those undertakings drawing up consolidated statements. Article 6 This Act shall enter into force on the eighth day after the day of its publication in the Official Gazette and shall apply to annual accounts for 2008 and later. Class: 011-01/08-01/43 Reg. No.: 513-11/08-1 Zagreb, 28 March 2008 MINISTER OF FINANCE ANNEX Ivan Šuker ANNUAL ACCOUNTS FOR UNDERTAKINGS THE BALANCE SHEET No. Item ASSETS A SUBSCRIBED CAPITAL UNPAID B LONG-TERM ASSETS I INTANGIBLE ASSETS 1 Costs of development 2 Concessions, patents, licences, trade marks, software and similar rights 3 Goodwill 4 Payments on account for purchase of intangible assets 5 Intangible assets in course of construction 6 Other intangible assets II TANGIBLE ASSETS 1 Land 2 Buildings 3 Plants and machinery 4 Tools, fixtures and fittings and vehicles 5 Biological assets 6 Payments on account for purchase of tangible assets 7 Tangible assets in course of construction 2/9
8 Other tangible assets 9 Investment in real estate III LONG-TERM FINANCIAL ASSETS 1 Shares in affiliated undertakings 2 Loans to affiliated undertakings 3 Participating interests (shares) 4 Investments into securities 5 Loans, deposits, etc. 6 Own shares 7 Other long-term financial assets IV CLAIMS 1 Amounts owed by affiliated undertakings 2 Amounts owed on the basis of credit sale 3 Other claims V DEFERRED TAX ASSETS C CURRENT ASSETS I STOCKS 1 Raw materials and consumables 2 Work in progress 3 Unfinished and semi finished products 4 Finished goods 5 Goods for resale 6 Payments on account for stocks 7 Other assets for resale II CLAIMS 1 Amounts owed by affiliated undertakings 2 Amounts owed by buyers 3 Amounts owed by undertakings with which the company is linked by virtue of participating interests 4 Amounts owed by employees and members of undertakings 5 Amounts owed by the state and other institutions 6 Other claims III SHORT-TERM FINANCIAL ASSETS 1 Shares in affiliated undertakings 2 Loans to affiliated undertakings 3 Participating interests (shares) 4 Investments in securities 5 Loans, deposits, etc. 6 Own shares 7 Other financial assets IV CASH AT BANK AND IN HAND D PREPAYMENTS AND ACCRUED INCOME 3/9
E LOSS EXCEEDING CAPITAL F TOTAL ASSETS G OFF-BALANCE SHEET ITEMS LIABILITIES A CAPITAL AND RESERVES I SUBSCRIBED CAPITAL II CAPITAL RESERVE III PROFIT RESERVE 1 Legal reserve 2 Reserve for own shares 3 Own shares (deductible item) 4 Statutory reserve 5 Other reserves IV REVALUATION RESERVE V PROFIT OR LOSS BROUGHT FORWARD 1 Retained profit 2 Loss brought forward VI PROFIT OR LOSS FOR THE FINANCIAL YEAR 1 Profit for the financial year 2 Loss for the financial year VII MINORITY INTEREST B PROVISIONS 1 Provisions for pensions, severance pay and similar obligations 2 Provisions for taxation 3 Other provisions C LONG-TERM LIABILITIES 1 Amounts owed to affiliated undertakings 2 Amounts owed for loans, deposits and other obligations 3 Amounts owed for banks and other financial institutions 4 Payments received on account 5 Accounts payable 6 Amounts owed on the basis of securities 7 Other long-term liabilities 8 Deferred tax liabilities D SHORT-TERM LIABILITIES 1 Amounts owed to affiliated undertakings 2 Amounts owed for loans, deposits and other obligations 3 Amounts owed for banks and other financial institutions 4 Payments received on account 5 Accounts payable 6 Amounts owed on the basis of securities 4/9
7 Amounts owed to employees 8 Amounts owed on the basis of taxes, contributions and other charges 9 Amounts owed under the share in results 10 Amounts owed on the basis of fixed assets intended for sale 11 Other short-term liabilities E ACCRUALS AND DEFERRED INCOME F TOTAL LIABILITIES G OFF-BALANCE SHEET ITEMS No. A Item ANNEX TO THE BALANCE SHEET CAPITAL AND RESERVE 1 Attributable to equity holders of the parent 2 Attributable to minority interest Note 1: Annex to the balance sheet shall be completed by undertakings drawing up consolidated annual accounts. Note 2: When classifying undertakings in accordance with Article 3 of the Accounting Act, the amount of loss exceeding capital calculated into assets shall not be taken into account. I No. Item OPERATING INCOME THE PROFIT AND LOSS ACCOUNT 1 Income from sales 2 Income from use of own products, goods and services 3 Other operating income II OPERATING CHARGES 1 Variation in stocks of finished goods and in work of progress 2 Material costs a) a) Costs of raw materials and consumables b) b) Costs of goods sold c) c) Other external charges 3 Staff costs a) a) Net wages and salaries b) b) Costs of taxes and contributions c) c) Contributions on salaries 4 Depreciation and amortisation 5 Other operating charges 5/9
6 Value adjustments a) d) in respect of fixed assets (other than financial assets) b) e) in respect of current assets (other than financial assets) 7 Provisions 8 Other operating charges III FINANCIAL INCOME 1 Interests, exchange rate differences, dividends and similar profit in respect of affiliated undertakings 2 Interests, exchange rate differences, dividends and similar profit in respect of non-affiliated undertakings and other persons 3 Share of income from affiliated undertakings and participating interests 4 Unrealized profit (income) 5 Other financial income IV FINANCIAL CHARGES 1 Interests, exchange rate differences, dividends and similar losses in respect of affiliated undertakings 2 Interests, exchange rate differences, dividends and similar losses in respect of non-affiliated undertakings and other persons 3 Unrealized loss (charges) of financial assets 4 Other financial charges V EXTRAORDINARY OTHER INCOME VI EXTRAORDINARY OTHER CHARGES VII TOTAL INCOME VIII TOTAL CHARGES IX PROFIT OR LOSS BEFORE TAXATION 1 Profit before taxation 2 Loss before taxation X PROFIT TAX XI PROFIT OR LOSS FOR THE FINANCIAL YEAR 1 Profit for the financial year 2 Loss for the financial year XII PROFIT OR LOSS FOR THE FINANCIAL YEAR 1 Attributable to equity holders of the parent 2 Attributable to minority interest Note: Items under XII Profit or loss for the financial year shall be completed by undertakings drawing up consolidated accounts. 6/9
THE CASH FLOW STATEMENT INDIRECT METHOD No. ITEM CASH FLOW FROM OPERATING ACTIVITIES 1 Profit before taxation 2 Amortisation 3 Increase in short-term liabilities 4 Decrease in current accounts receivable 5 Decrease in stocks 6 Other increase in cash flow I TOTAL INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES 1 Decrease in short-term liabilities 2 Increase in current accounts receivable 3 Increase in stocks 4 Other decrease in cash flow II TOTAL DECREASE IN CASH FLOW FROM OPERATING ACTIVITIES A NET CASH FLOW FROM OPERATING ACTIVITIES CASH FLOW FROM INVESTING ACTIVITIES 1 Cash receipts from the sale of fixed tangible and intangible assets 2 Cash receipts from the sale of debt or equity instruments 3 Interest received on loans 4 Cash receipts from dividends 5 Other cash receipts from investing activities III TOTAL CASH RECEIPTS FROM INVESTING ACTIVITIES 1 Payments for the sale of fixed tangible and intangible assets 2 Payments for the acquisition of debt or equity instruments 3 Other expenditures for investing activities IV TOTAL EXPENDITURES FOR INVESTING ACTIVITIES B NET CASH FLOW FROM INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES 1 Proceeds from issuing debt or equity instruments 2 Proceeds from debt principal, debentures, overdrafts and other borrowing 3 Other cash receipts from financing activities V TOTAL CASH RECEIPTS FROM FINANCING ACTIVITIES 1 Repayment of debt principal and bonds 2 Payments of dividends 3 Payments of financial leases 4 Payments for redemption of own shares 5 Other expenditures for financing activities VI TOTAL EXPENDITURES FOR FINANCING ACTIVITIES C NET CASH FLOW FROM FINANCING ACTIVITIES 7/9
No. ITEM TOTAL NET CASH FLOW CASH AND CASH EQUIVALENTS AT THE BEGINNING OF FINANCIAL YEAR CASH AND CASH EQUIVALENTS AT THE END OF FINANCIAL YEAR INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS DIRECT METHOD No. Item CASH FLOW FROM OPERATING ACTIVITIES 1 Cash receipts from customers 2 Cash receipts from royalties, fees, commissions, etc. 3 Cash receipts from indemnity insurance 4 Cash receipts on the basis of tax return 5 Other cash receipts I TOTAL CASH RECEIPTS FROM OPERATING ACTIVITIES 1 Payments to suppliers 2 Payments to employees 3 Expenditures for indemnity insurance 4 Expenditures for interests 5 Expenditures for taxes 6 Other expenditures II TOTAL EXPENDITURES FOR OPERATING ACTIVITIES A NET CASH FLOW FROM OPERATING ACTIVITIES CASH FLOW FROM INVESTING ACTIVITIES 1 Proceeds from the sale of fixed tangible and intangible assets 2 Proceeds from the sale of debt and equity instruments 3 Interests received on loans 4 Cash receipts from dividends 5 Other cash receipts from investing activities III TOTAL RECEIPTS FROM INVESTING ACTIVITIES 1 Expenditure for purchase of fixed tangible and intangible 2 Expenditure for the acquisition of debt or equity instruments 3 Other expenditures from investing activities IV TOTAL EXPENDITURES FOR INVESTING ACTIVITIES B NET CASH FLOW FROM INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES 1 Proceeds from issuing debt or equity financial instruments 2 Proceeds from debt principal, debentures, overdrafts and other borrowing 3 Other receipts from financing activities V TOTAL CASH RECEIPTS FROM FINANCING ACTIVITIES 1 Repayment of debt principal and bonds 8/9
2 Payments of dividends 3 Payments of financial leases 4 Payments for redemption of own shares 5 Other expenditures for financing activities VI TOTAL EXPENDITURES FROM FINANCING ACTIVITIES C NET CASH FLOW FROM FINANCING ACTIVITIES TOTAL NET CASH FLOW CASH AND CASH EQUIVALENTS AT THE BEGINNING OF FINANCIAL YEAR CASH AND CASH EQUIVALENTS AT THE END OF FINANCIAL YEAR INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Note: Receipts on the basis of interests and dividends can also be classified as operating activities (IAS 7 Annex A). THE STATEMENT OF RETAINED EARNINGS No. Item 1 Subscribed capital 2 Capital reserve 3 Profit reserve 4 Profit or loss brought forward 5 Profit or loss for the current year 6 Revaluation of fixed tangible assets 7 Revaluation of intangible assets 8 Revaluation of financial assets available for sale 9 Other revaluation 10 Exchange rate differences in respect of net investments into foreign business operations 11 Current and deferred taxes (part) 12 Cash flow protection 13 Changes in accounting policy 14 Correction of errors in the preceding accounting period 15 Other changes of capital 16 Total increase or decrease in capital a) Attributable to equity holders of the parent b) Attributable to minority interest Note: Nos. 16a and 16b shall be completed only by undertakings required to draw up consolidated accounts. 9/9