Caracterización conceptual de las adverbiales: primer

ACCOUNTING PRINCIPLES

General

The financial statements have been prepared in accordance to the Finnish Accounting Act and Companies Act. The financial statements are de- nominated in euros.

Scope and principles of consolidation

All Group companies are included in the consoli- dated financial statements of Ramirent Plc. The companies acquired during the 2002 finan- cial year have been included as of their date of acquisition.

All intra-Group transactions, receivables, liabilities and profit distribution have been elimi- nated. The unrealised margins from intra-Group sales have been eliminated insofar as they would affect the Group’s profit and its capital and reserves. Minority interests are presented sepa- rately in the income statement and balance sheet.

Intra-Group holdings have been eliminated using the acquisition cost method. The differ- ences arising from eliminations have been entered either as fixed assets or as Group good- will. The amount allocated as fixed assets on 31 December, 2003, was EUR 517,595 (EUR 575,106). The fixed asset items will be depre- ciated according to plan, while goodwill will be amortised in 10 to 20 years.

The income statements of foreign Group companies have been translated into euros at the average exchange rate for the financial year, and the balance sheets at the exchange rate on 31 December. The differences arising from transla- tion and exchange rates have been entered in ”financial income and expenses” in the income statement, except for exchange rate translation differences in capital and reserves, which are presented under ”capital and reserves” in the balance sheet. The financial statements of the Russian subsidiaries of Ramirent Europe Oy have been translated into euros using the monetary – non monetary method.

Net sales

Net sales include rental income, sales income from technical trade, the sale of services, and gains from the sale of used rental machinery and equipment.

Appropriations

Appropriations are changes in the parent company’s depreciation in excess of plan. In the consolidated balance sheet, the accumu- lated appropriations have been divided between capital and reserves and the deferred tax liability. In the income statement, the change in appropriations for the year has correspondingly been divided between net profit for the year and change in deferred tax liability.

Taxes

The taxes due on the taxable profit for the financial year have been entered as income taxes in the parent company’s income state- ment.

The taxes due on the taxable profits of Group companies have been entered as income taxes in the consolidated income statement. The taxes have been calculated in accordance with each company’s local tax regulations, on the basis of computed taxable income.

Deferred tax liabilities and assets in the consolidated figures have been accounted for temporary differences between taxation and the financial statements and of consolidation measures, and are based on the following year’s tax rate confirmed on the balance sheet date. The consolidated balance sheet includes the deferred tax liability in total and deferred tax as- sets computed as the estimated probable assets.

Comparability of figures with those of the previous year

The figures of the 2003 financial year are not comparable with those of 2002, regarding the income statement, due to the acquisition that was implemented on 30 September, 2002 and the related share offering.

Foreign currency items

At the end of the financial year, unsettled foreign currency assets and liabilities are trans- lated into Finnish currency at the average rate on 31 December. Realised exchange rate differ- ences are presented in the income statement, whereas unrealised exchange rate differences are presented under adjustments.

The principal foreign exchange rates used were:

Income statement rate Balance sheet rate

2003 2002 2003 2002 EUR/RUB 34.65474 32.35199 36.54500 33.27787 EUR/EEK 15.64660 15.64700 15.64660 15.64700 EUR/LVL 0.64050 0.60491 0.67250 0.61230 EUR/LTL 3.45274 3.45256 3.45240 3.45244 EUR/PLN 4.39804 3.99106 4.70190 4.00048 EUR/SEK 9.12425 9.09433 9.08000 9.15280 EUR/NOK 7.99845 7.30810 8.41410 7.27560 EUR/HUF 253.52056 237.52969 262.50000 235.84906 Financial instruments

The Group companies have no derivatives contracts.

Pension costs

Pension cover is arranged through an external pen- sion insurance company. Pension insurance costs are booked as they occur. Pension insurance costs of foreign subsidiaries are presented as required by each respective country’s local legislation.The Nor- wegian subsidiary has liabilities for early retire- ment pensions, which are not entered in to the books.

Maintenance and repairs

Except for major refurbishment costs, which are capitalised and depreciated over their period of im- pact, maintenance and repair costs are booked as ex- penses during the financial year in which they oc- cur.

Fixed assets

Fixed assets are capitalised at their direct acquisi- tion cost in the balance sheet, reduced by the depre- ciation made according to plan. The planned depreci- ation is calculated on the basis of the economic life expectancies of the fixed assets either as straight- line depreciation or as a percentage (reducing balance method). The depreciation periods for the fixed assets are as follows:

Goodwill 10–20 years

Other long-term expenditure 3–8 years Buildings and structures 20 years Machinery and equipment for own use 3–10 years

Rental machinery, fixtures and equipment, itemised Lifting and loading equipment 8–15 years

Small machines 3–8 years

Portable spatial units 10 years

Rental machinery and equipment, non-itemised

Scaffolding 10%

Reducing balance method

Formwork and supporting fixtures 10% Reducing balance method

Other non-itemised 10–33%

Reducing balance method

Goodwill arising from restructuring of the Group is amortised over 10–20 years depending on the perceived importance of the restructuring to Group strategy. The goodwill amortisation period relating to the Bautas/Stavdal acquisition on 30 September, 2002 is defined as 20 years. The importance of the acquisition and the Group’s strategic shift to new Scandinavian markets influenced the length of the amortisation period.

Inventories

Inventories are shown at the lowest of the weighted average price, the replacement price or the probable selling price. The direct acquisition costs are included in the value of the inventories.

Cash in hand and at the bank

Cash in hand and at the bank includes cash and bank accounts.

Preparations for adopting IFRS

(International Financial Reporting Standards)

Ramirent Plc will report in accordance with the IAS/FRS standards in its 2005 financial statements. The Group began preparations in 2003 for the adoption of IFRS.

During 2004 the company will decide on the optional accounting principles to be applied to the financial statements and will calculate the opening information for the first IFRS balance sheet in 2005 and the comparative data for 2004. This will be accompanied by any necessary system adjustments in order to begin IFRS-based reporting in 2005. The