71
2013
Annual Report
7
EUSKALTEL, S.A.
NOTES TO THE ANNUAL ACCOUNTS FOR 2013
(Expressed in thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)
NOTE 1
.- General Information
Euskaltel, S.A. (hereinafter the Company) was incorporated with limited liability on 3 July 1995. Its first
product was launched on the market on 23 January 1998. Its registered office is located in Derio (Bizkaia) and
its products are mainly sold in the Autonomous Region of the Basque Country.
The Company's statutory and principal activity since its incorporation consists of the rendering, management,
installation, operation and marketing of telecommunications networks and services in accordance with
prevailing legislation, as well as the marketing and sale of goods required to carry out these services. The
Company's main facilities are located at the Bizkaia technology park.
NOTE 2
.- Basis of Presentation
2.1.
Fair presentation
The annual accounts for 2013 have been prepared on the basis of the accounting records of the Company in
accordance with prevailing legislation stipulated in the Spanish Code of Commerce amended in accordance
with Law 16/2007 of 4 July 2007 on the reform and adaptation of accounting legislation for harmonisation with
EU law, and the Spanish General Chart of Accounts approved by Royal Decree 1514/2007 and its subsequent
amendments through Royal Decree 1159/2010, to present fairly the equity and financial position at 31
December 2013 and results of operations and cash flows for the year then ended. The directors consider that
the annual accounts for 2013 will be approved by the shareholders at their annual general meeting with no
changes. The annual accounts for 2012 were approved by the shareholders at their general meeting held on 27
June 2013.
The Company does not prepare consolidated annual accounts for the Group of which it is the Parent, as the
directors have decided to avail of the exemption provided in article 7 of the standards for the preparation of
consolidated annual accounts (NOFCAC) approved by Royal Decree 1815/1991, as it only holds investments in
subsidiaries that are not, individually or as a whole, material to the fair presentation of the equity, financial
position and results of the Group companies.
2.2.
Critical issues regarding the valuation and estimation of uncertainties
Preparation of the annual accounts requires certain estimates and judgements concerning the future. These
are evaluated constantly and based on historical experience and other factors, including expectations of future
events and, where applicable, the justified opinion of renowned experts.
In the event that the final outcome of the estimates differed from the amounts initially recognised, or
information that would modify these estimates became available, the effects of any changes in the initial
estimates are accounted for in the year they are known.
The estimates and judgements that present significant risk of a material adjustment to the carrying amounts of
assets and liabilities in the subsequent reporting period are as follows:
