Basic Information of the Parent Company and Accounting Policies (FAS)
Basic information of the company
Digia Plc is the parent company of the Digia Group. It is domiciled in Helsinki and its registered office is at Hiomotie 19, 00380 Helsinki. Digia Plc subsidiaries with business operations are Digia Finland Ltd (with the wholly owned subsidiaries Digia Financial Software Oy and Digia Service Oy), Sunrise Resources Ltd and Digia Sweden Ab.
The parent company's financial statements have been prepared in accordance with Finnish Accounting Standards (FAS). The financial statement is based on original acquisition costs. Book values based on original costs have been reduced to correspond to fair value as necessary.
Since 1 June 2005, the parent company has operated as the Group's administrative company and charged the Group companies for services rendered.
The Group's pension schemes are arranged through a pension insurance company. Pension premiums and expenses allocated to the financial period are based on confirmations received from the insurance company. Pension expenses are recognised as expenses for the year in which they arise.
Leasing payments are recognised as annual expenses.
Extraordinary income and expenses include substantial non-recurring income and expenses not associated with actual business operations. In the reporting periods 2010 and 2009, Group contributions received have been recognised as extraordinary items.
Fixed assets, depreciation and amortisation
Fixed assets are recognised in the balance sheet at immediate cost less planned depreciation and amortisation.
The economic lives underlying planned depreciation and amortisation are as follows:
|| 5 years
|Other long-term expenses
|| 5 years
|Buildings and structures
|| 25 years
|Machinery and equipment
|| 3–8 years
Purchases of fixed assets with an economic life of less than three years are recognised as annual expenses.