Translation note:
This version of our report is a translation from the original, which was prepared in Slovenian. All possible care has been taken to ensure that the translation is an
accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes
precedence over this translation.
5
Measurement, derecognition, and recognition of
liabilities due to Gazprom Export LLC (hereinafter:
Gazprom) in consolidated financial statements
See Note 3.c 6 Significant accounting policies of
the Group – Financial liabilities and Note 3.c 7
Operating liabilities and Note 3.p Significant
accounting policies of the Group – Determination of
fair value.
The total value of liabilities to Gazprom as at 31
December 2022 is disclosed in Note 6.39 in the
financial statements – Current operating liabilities,
and amounts to EUR 3,550,000. The total impact
on profit or loss for 2022 from the derecognition
and recognition of liabilities is the income
recognition in the amount of EUR 88,592,000,
which is disclosed in Note 6.3 Revenue – Other
revenue.
The measurement, derecognition and recognition of
liabilities to Gazprom are subject to significant audit
risk due to:
● significant and uncertain business with
Gazprom due to the war in Ukraine and
associated international sanctions on
Russia,
● the complicated application of International
Financial Reporting Standard 9 – Financial
Instruments (hereinafter: IFRS 9),
● the complexity of the estimation of the fair
value of liabilities, and
● the importance of subjective judgements
and assessments used by the Management
in determining fair value.
Our audit approach included significant audit
procedures, including:
● Checking the gas supply contract with
Gazprom and checking other
documentation related to the termination of
this contract in 2022.
● Checking the invoices received from
Gazprom for the supplied gas quantities in
the amount of the reported liability before
the recognition of this liability in 2022.
● Checking the accounting for the
derecognition of the liability to Gazprom for
the supplied gas, recognition of the new
liability, and measurement of this liability to
Gazprom in 2022 and as at 31 December
2022 in accordance with IFRS 9.
● Assessing the relevance of the input data
used in the valuation report by our internal
valuation experts prepared by the Group
advisers.
● Checking input data used in the calculation
of the claim for damages the Group has
towards Gazprom.
● With support of our internal legal experts,
we assessed the reasonableness of the
scenarios used in the valuation report
prepared by the Group valuation advisers
in the context of their legal argument.
● Assessing the suitability of the disclosures
in consolidated financial statements related
to the measurement, derecognition and
recognition of liabilities to Gazprom.
In our audit team, we also included those with
appropriate expertise in IFRS 9 who assisted in
assessing the appropriateness of the accounting
treatment of the derecognition and recognition of
liabilities, an asset valuation expert who assisted
in assessing the appropriateness of the
methodology used and the use of discount rates,
and a legal expert who was used primarily to
assess the appropriateness of the legal scenarios
applied in the valuation in the Gazprom case.