Notes to Kemira Oyj Financial Statements

EUR

1. THE PARENT COMPANY'S ACCOUNTING POLICIES FOR THE FINANCIAL STATEMENTS
BASIS OF PREPARATION
The parent company’s financial statements have been prepared in compliance with the relevant acts and regulations in force in Finland (FAS). Kemira Group’s financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), and the parent company observes the Group’s accounting policies according to FAS whenever it has been possible. Below are presented mainly the accounting policies in which the practice differs from the Group’s accounting policies. In other respects the Group’s accounting policies are observed.
PENSION ARRENGEMENTS
The company’s pension liabilities are treated as a part of the pension insurance company and as a part of Kemira’s own pension foundation. Contributions are based on periodic actuarial calculations and are recognized in the income statement.
SHARE-BASED INCENTIVE SCHEME FOR THE PERSONNEL
The treatment of share-based schemes is described in the Group’s accounting policies. In the parent company, share-based payments are recognized as an expense in the amounts of the payments to be made.
EXTRAORDINARY INCOME AND EXPENSES
Extraordinary income and expenses consist of the Group contributions received and given, which are eliminated at the Group level.
INCOME TAXES
The Group’s accounting policies are applied to income taxes and deferred tax assets and liabilities as permitted under Finnish GAAP. Deferred tax liability for the depreciation difference is stated in the notes to financial statements.
PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
The Group’s accounting policies are applied to property, plant and equipment, and intangible assets.
LEASE
All leasing payments are treated as rental expenses.
FINANCIAL ASSETS, FINANCIAL LIABILITIES AND DERIVATIVE CONTRACTS
All financial assets (including shares) and liabilities are recognized at their acquisition value or their acquisition value less write-downs, with the exception of derivative instruments, which are measured at their fair value.
Changes in the value of the financial assets and liabilities, including derivatives, are booked as a credit or charge into income statement under financial income and expenses, with the exception of other derivatives used for hedging purposes the efficient part of which is booked to fair value reserve. Inefficient part of other derivative instruments used for hedging purposes is booked as a profit or loss into the income statement.
The valuation methods of derivative instruments are described in the Group's accounting policies and in Note 28 in the Consolidated Financial Statements.