TomTom 2005 Annual Report Download - page 61
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NotestothefinancialstatementsofTomTomNV
1.General
TomTomNV(the“Company”),wasknownasVersalis
GroupBVon31December2004andchangeditsname
toTomTomNVinMay2005.VersalisGroupBVwas
renamedTomTomGroupBVon14April2005.TomTom
GroupBVwasmergedintoTomTomNederlandBVon13
May2005andatthattimeTomTomGroupBVceasedto
exist.TomTomNederlandBV,aprivatecompanywith
limitedliability,wasconvertedintoTomTomNVbyadeed
ofconversionandamendmenttotheCompany’sArticles
ofAssociationon13May2005.
TheCompanyhasitsstatutoryseatinAmsterdam,the
Netherlands.TheCompanyhasitsheadquartersin
Amsterdam,theNetherlands.Theactivitiesofthe
Companyincludethedevelopmentandsaleofnavigation
solutions.Theprimaryfocusoftheseactivitiesison
personalnavigation.
TheCompanyhasreclassifiedcertainbalancesto
conformthemto2005presentation.Suchreclassification
isconsideredinsignificant.
TheseFinancialStatementsfor2005representthe
ConsolidatedFinancialStatementsfor2005only.The
completefinancialstatementsfor2005includingthe
ConsolidatedandCompanyFinancialStatementsfor
2005areavailableattheCompany’sofficesonrequest
andformtheofficialfinancialstatementsoftheCompany
2.Summaryofsignificantaccounting
policies
Basisofaccounting
Theconsolidatedfinancialstatementshavebeen
preparedinaccordancewithInternationalFinancial
ReportingStandardsasadoptedbytheEU.
Thefinancialstatementshavebeenpreparedonthe
historicalcostbasis,exceptforderivativesandfinancial
instruments,classifiedasheldfortradingoravailablefor
sale,whicharestatedatfairvalue.
Unlessotherwiseindicated,assetsandliabilitiesare
carriedattheirnominalvalue.Incomeandexpensesare
accountedforonanaccrualsbasis.
Thepreparationofthesefinancialstatementsrequires
thattheCompanymakesassumptions,estimatesand
judgementsthataffectthereportedamountsofassets,
liabilitiesanddisclosureofcontingentassetsand
liabilitiesasofthedateoftheconsolidatedfinancial
statementsandthereportedamountsofrevenuesand
expensesduringthereportingperiod.Actualresultsmay
differfromthoseestimates.Estimatesareusedwhen
accountingforitemsandmatterssuchasrevenue
recognition,allowancesforuncollectibleaccounts
receivable,inventoryobsolescence,productwarranty,
amortisation,assetvaluations,impairmentassessments,
taxes,otherprovisions,stock-basedcompensationand
contingencies.Theprincipalaccountingpoliciesadopted
aresetoutbelow.
Basisofconsolidation
Theconsolidatedfinancialstatementsincorporatethe
financialstatementsoftheCompanyandentities
controlledbytheCompany(itssubsidiaries).Controlis
achievedwheretheCompanyhasthepowertogovern
thefinancialandoperatingpoliciesofanentitysoasto
obtainbenefitsfromitsactivities.
Theresultsofsubsidiariesacquiredordisposedofduring
theyearareincludedintheconsolidatedincome
statementfromtheeffectivedateofacquisitionorupto
theeffectivedateofdisposal,asappropriate.Where
necessary,adjustmentsaremadetothefinancial
statementsofsubsidiariestobringtheiraccounting
policiesintolinewiththoseusedbyothermembersof
theGroup.Allsignificantintra-grouptransactions,
balances,incomeandexpensesareeliminatedon
consolidation.