Objetivos

In April 2009 the IASB issued its second set of amendments to its standards, primarily with a view to removing inconsistencies and clarifying wording. The following standards were amended:

• IFRS 3R Business Combinations (revised in January 2008) – effective for financial years beginning on or after 1 July 2009, • Amendments to IAS 27 Consolidated and Separate Financial Statements (issued in January 2008) – effective for financial years

beginning on or after 1 July 2009,

• Amendments to IAS 39 Financial Instruments: Recognition and Measurement: Eligible Hedged Items (issued in July 2008) – effective for financial years beginning on or after 1 July 2009,

• Revised IFRS 1R First–time Adoption of International Financial Reporting Standards (revised in November 2008) – effective for financial years beginning on or after 1 July 2009,

• IFRIC 17 Distributions of Non–cash Assets to Owners – effective for financial years beginning on or after 1 July 2009,

• Improvements to IFRSs (issued in April 2009) – some improvements are effective for financial years beginning on or after 1 July 2009, the rest is effective for financial years beginning on or after 1 January 2010 – not endorsed by the EU until the date of approval of these financial statements,

• Amendments to IFRS 2 Share–based Payments – Group Cash-settled Share-based Payment Transactions (amended in June 2009) – effective for financial years beginning on or after 1 January 2010 – not endorsed by the EU until the date of approval of these financial statements,

• Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards: Additional Exemptions for First-time Adopters – effective for financial years beginning on or after 1 January 2010 – not endorsed by the EU until the date of approval of these financial statements,

• Amendments to IAS 32 Financial instruments: presentation: Classification of Rights Issues – effective for financial years beginning on or after 1 February 2010,

• IAS 24 Related Party Disclosures (revised in November 2009) – effective for financial years beginning on or after 1 February 2010 – not endorsed by the EU until the date of approval of these financial statements,

• IFRS 9 Financial Instruments – effective for financial years beginning on or after 1 January 2013 – not endorsed by the EU until the date of approval of these financial statements,

• Amendments to IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction: Prepayments of a Minimum Funding Requirements – effective for financial years beginning on or after 1 January 2011 – not endorsed by the EU until the date of approval of these financial statements,

• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments – effective for financial years beginning on or after 1 July 2010 – not endorsed by the EU until the date of approval of these financial statements,

• Amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards: Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters – effective for financial years beginning on or after 1 July 2010 - not endorsed by the EU until the date of approval of these financial statements.

It is anticipated that these changes will have no material effect on Fortuna Group’s financial statements. 5. USE OF ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Judgements

The preparation of these combined financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

In the process of applying FEGNV’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognised in the combined financial statements:

Recognition of gross versus net revenues

FEGNV is a subject of various governmental taxes and levies. The regulations differ significantly from one country to another. Revenue includes only the gross inflows of economic benefits received and receivable by the entity on its own account. Amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes are not economic benefits which flow to the entity and do not result in increases in equity. Therefore, they should be excluded from revenue. The management makes its own judgment as to whether the entity is acting as principal or agent in collecting the tax based on various indicators as well as changing circumstances in each of the countries were FEGNV operates. Further details are given in notes 4.17.3 and 6. Estimates

The key assumptions concerning future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Indefinite life intangible assets and goodwill

Fortuna Group determines whether indefinite life intangible assets are impaired at least on an annual basis. This requires an estimate of an asset’s recoverable amount which is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Estimating a value in use amount requires management to make an estimate of the expected future cash flows from the cash generating unit and also to choose a suitable discount rate in order to calculate the present value of those cash flows. Further details are given in notes 4.3.

Betting transactions

Betting transactions are measured at the fair value of the consideration received or paid. This is usually the nominal amount of the consideration; however in relation to unresolved bets the fair value is estimated in accordance with IAS 39 using valuation and probability techniques, taking into account the probability of the future win.

Deferred tax

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based on the likely timing and the level of future taxable profits together with future tax planning strategies.

Fortuna Group has incurred tax losses arising in Croatia of € 5,823 thousand that are available for set-off against future taxable profits of the Company incurring the losses (i.e. Fortuna sportska kladionica d.o.o.) for 5 years. Of these tax losses of € 5,823 thousand only € 2,147 thousand are recognised as deferred tax asset as there is insufficient certainty that there will be sufficient tax profits to realise the full amount. Further details on taxes are disclosed in notes 4.17 and 11.

Recoverable amount of receivables

Where there are indicators that any receivable is impaired at a balance sheet date, management makes an estimate of the asset’s recoverable amount. Further details are given in note 4.8.