Boskalis_Annual_Report_2016

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LEASE PAYMENTS 3.25
Payments made under operating leases are recognized in
profit or loss on a straight-line basis over the term of the lease.
Lease incentives received are recognized as an integral part
of the total lease expense, over the term of the lease. Minimum
lease payments made under finance leases are apportioned
between the finance expense and the reduction of the
outstanding lease liability. The finance expense is allocated to
each period during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the lease
liability.
FINANCE INCOME AND COSTS 3.26
Finance income comprises interest received and receivable
from third parties, currency gains on financing and
compensating results of negative changes in the fair value of
financial instruments used to hedge interest or currency results
on the financing concerned (hedged item), for which the
results of the hedged item are included in the finance income.
Interest income is recognized in the statement of profit or loss
as it accrues, using the effective interest rate method.
Finance expenses include interest paid and payable to third
parties which are reported using the effective interest method,
expenses resulting from early repayments, arrangement fees,
currency losses on financing and results of positive changes in
fair value of financial instruments used to hedge interest or
currency results on the financing concerned (hedged item), for
which the results of the hedged item are included in the
finance expenses. The interest component of financial lease
payments is recognized in the statement of profit or loss using
the effective interest rate method.
Borrowing costs not directly attributable to the acquisition,
construction or production of a qualifying asset are
recognized in the statement of profit or loss.
SHARE IN RESULT OF JOINT VENTURES AND 3.27
ASSOCIATED COMPANIES
Share in result of joint ventures and associated companies
comprises the share in the results after taxation of the strategic
investments ( .
TAXATION / DEFERRED INCOME TAX ASSETS AND 3.28
LIABILITIES
Taxation is calculated on the basis of the result before taxation
for the reporting period, taking into account the applicable tax
provisions and tax rates, and also includes adjustments on
taxation from prior reporting periods and movements in
deferred taxes recognized in the reporting period. Taxation is
included in the statement of profit or loss unless it relates to
items recognized directly in equity, in which case taxation is
included in equity. Income tax expenses also include the
corporate income tax levied on deemed profit determined by
revenue (withholding tax). Temporary differences are
accounted for in deferred tax assets and/or deferred tax
liabilities. Deferred tax assets are only recognized to the extent
that it is probable that taxable profit will be available for
realization in the foreseeable future. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be
realized. Deferred tax assets and liabilities are offset if there is
a legally enforceable right to do so, and if they relate to
income taxes levied by the same tax authority on the same
taxable entity or on different tax entities, but provided there is
an intention to settle the tax liabilities and assets on a net basis
or the tax assets and liabilities will be realized simultaneously.
Deferred income tax assets and liabilities are recognized at
nominal value. Additional (income) taxes that arise from the
distribution of dividend are recognized at the same time that
the liability to pay the related dividend is recognized.
EARNINGS PER SHARE 3.29
The Group discloses earnings per ordinary share as well as
diluted earnings per ordinary share. Earnings per ordinary
share is calculated based on the result attributable to the
Group’s shareholders divided by the calculated average
number of issued ordinary shares during the reporting period,
taking into account any shares that have been issued or
repurchased during the reporting period. In calculating the
diluted earnings per share the result attributable to the Group’s
shareholders and the average number of issued ordinary
shares are adjusted for all potentially diluting effects on
ordinary shares.
DIVIDEND 3.30
Dividends are recognized as a liability in the period in which
they are declared.
DETERMINATION OF FAIR VALUE 3.31
A number of the Group’s accounting policies and disclosures
require the determination of fair value, for both financial and
non-financial assets and liabilities. Fair value is determined for
measurement and/or disclosure purposes based on the
following methods:
Intangible assets
The fair value of other intangible assets recorded as a result of
a business combination is based on the discounted cash flows
expected to be derived from the use and eventual sale of the
assets.
Financial assets available for sale
The fair value of the financial assets available for sale is
determined by quoted prices.
Strategic investments
Where relevant, the fair value of strategic investments is
determined or disclosed based on quoted prices or business
valuations.
Property, plant and equipment
The fair value of property, plant and equipment recognized as
a result of a business combination is based on market values.
The market value of property is the estimated amount for
which a property could be exchanged on the date of valuation
between a willing buyer and a willing seller in an arm’s length
transaction, after proper marketing wherein each party acted
knowledgeably, prudently and without compulsion.
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ANNUAL REPORT 2016 – BOSKALIS