The financial statements have been prepared in accordance with Finnish Accounting Standards (FAS). The financial statement data are presented in euros, with the exception of the cash flow statement, which is presented in thousands of euros.
SCOPE OF THE CONSOLIDATED FINANCIAL STATEMENTS
iLOQ Group comprises the parent company and the subsidiaries iLOQ Sverige AB (100% holding, domiciled in Stockholm), iLOQ Deutschland GmbH (100% holding, domiciled in Dusseldorf), iLOQ Benelux B.V. (100% holding, domiciled in Eindhoven), iLOQ Danmark ApS (100% holding, domiciled in Aarhus), and iLOQ Norge AS (100% holding, domiciled in Oslo).
All Group companies have been consolidated in the consolidated financial statements. Intra-group transactions, mutual receivables, and liabilities have been eliminated. The income statements of foreign Group companies have been converted into Finnish currency at the average exchange rate for the financial period and balance sheets at the exchange rate on the date of closure of the accounts. The exchange rate differences from the conversion and the conversion differences from the conversions of the foreign subsidiaries’ equities are presented under item “Retained earnings”.
INTANGIBLE AND TANGIBLE ASSETS
Intangible and tangible assets are recognised in the balance sheet at acquisition cost less planned depreciation. Acquisition cost includes variable expenses. Planned depreciation is calculated with the straight line method over the useful lives of intangible and tangible assets. Grants received are recognised as deductions from acquisition costs.
Development expenses for 2017 have been entered in the balance sheet at acquisition cost. Due to the change in the Finnish Accounting Act, the R&D expenses capitalised in 2015 have been reclassified from the category of other intangible assets to the category of development expenses in the financial period 2016. Depreciation of these will be initiated as planned straight-line depreciation when the R&D project has been completed.
THE DEPRECIATION PERIODS ARE:
|Intangible rights||5–10 years|
|Other intangible assets||5–10 years|
|Machinery and devices||5 years|
|Equipment and other movable items||5 years|
Inventories are presented in accordance with the average price principle at acquisition cost or lower probable selling price. Variable expenses are included in the value of inventories.