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.

Accounting policies

 

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.

Pension schemes

 

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

 

Leasing payments are recognised as annual expenses.

Extraordinary items

 

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:

Intangible assets  
Intangible rights   5 years
Other long-term expenses   5 years

 

Tangible assets  
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.