Notes to the Parent Company Financial Statements (FAS)
1. Accounting principles
Basware Corporation’s financial statements have been prepared in accordance with the Finnish Accounting Act.
In February 2018 Basware Corporation sold its Financial Performance Solutions and Banking businesses and harmonised revenue recognition principles with the Group in accordance with the Finnish Accounting Rules. Due to changes the figures for the financial year 2018 and 2017 are not comparable.
Transactions in foreign currencies
Transactions in foreign currencies are recorded at the exchange rates prevailing at the transaction dates. At the end of the accounting period, the unsettled balances on foreign currency receivables and liabilities are valued at the rates of exchange prevailing at the end of the accounting period. Foreign exchange gains and losses related to normal business operations are entered in the appropriate income statement account before operating profit and foreign exchange gains and losses associated with financing are entered as a net amount under financial income and expenses.
Parent company applies the same revenue recognition principles as Basware group. Revenue recogniton principles of Basware Group are presented in note 2.
Other operating income
Other operating income includes proceeds from the sale of business operations and property, plant and equipment and rental income.
Research and development costs
Research expenses are booked as an expense as they are incurred. Costs
related to the adoption of new technology or development of a new
generation of projects are capitalized and recognized and amortized over
the useful life of 3-5 years. In determining the useful life, the
obsolescence of technology and the typical life cycle of products in the
industry are taken into consideration. Amortization starts once the
product is ready for commercial utilization. Maintenance of existing
products and minor enhancements are recognized as they are incurred.
Public subsidies related to research and development are recognized
through profit or loss in the periods during which the corresponding
costs are recognized as expenses.
The statutory pension coverage for employees is provided through insurance policies taken out with a pension institution. The statutory pension expenses are recognized as expenses in the year they are incurred.
Intangible assets are recognized at the original acquisition cost less accumulated depreciation according to plan and possible impairment. Public subsidies related to the acquisition of an intangible asset are deducted from the acquisition cost of the asset and recognized as income by reducing the depreciation charge of the asset they are related to. The expected useful lives of intangible assets are 3–10 years. The useful lives are reviewed at the end of each financial year and are adjusted if needed.
Tangible assets are recognized in the balance sheet at the original acquisition cost less accumulated depreciation. The useful lives of tangible assets are 3-5 years.
The company’s subsidiary shares and other shares in the investments in non-current assets are valued at acquisition cost or, if lower, at fair value.
Financial instruments are recognized at fair value in accordance with Accounting Act section 5: 2a. The accounting principles of hedge accounting are presented in Note 18 and Note 22 of Group Financial Statements.
A provision is recognized when the Group has a present legal or
constructive obligation as a result of a past event, it is probable that
the obligation will have to be settled, and the amount of the
obligation can be reliably estimated.
Leasing payments are recognized as annual expenses.
Income taxes have been recognized in accordance with the Finnish tax legislation.
|Income taxes include the income tax payments for the period based on the profit for the period, taxes for prior periods and tax refunds. Deferred taxes are not included in the parent’s income statement and balance sheet.|