4.1 INDEPENDENT AUDITOR’S REPORT FOR THE POŠTA SLOVENIJE GROUP
Deloitte revizija d.o.o.
Dunajska cesta 165
1000 Ljubljana
Slovenia
Tel.: +386 (0) 1 3072 800
Fax: +386 (0) 1 3072 900
www.deloitte.si
INDEPENDENT AUDITOR’S REPORT
to the owners of Pošta Slovenije d.o.o.
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the company Pošta Slovenije d.o.o. (hereinafter ‘the Company’), which comprise the statement of financial position as at 31 December 2020, and the income statement, statement of other comprehensive income, statement of changes in equity and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2020, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU (hereinafter ‘IFRS’).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and Regulation (EU) 537/2014 of the European Parliament and of the Council, dated 16 April 2014, on specific requirements regarding statutory audit of public-interest entities. Our responsibilities under those rules are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and other ethical requirements that are relevant to our audit of the financial statements in Slovenia, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the year ended 31 December 2020. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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In Slovenia the services are provided by Deloitte revizija d.o.o. and Deloitte svetovanje d.o.o. (jointly referred to as “Deloitte Slovenia”), affiliates of Deloitte Central Europe Holdings Limited. Deloitte Slovenia is one of the leading professional services organizations in the country providing services in audit and assurance, consulting, financial advisory, risk advisory, tax and related services, through over 160 national and foreign professionals.
Deloitte revizija d.o.o. - The company is registered with the Ljubljana District Court, registration no. 1647105 - VAT ID SI62560085 - Nominal capital EUR 74,214.30.
© 2021. For more information, contact Deloitte Slovenia.
Recognition of Revenue from Contracts with Customers in the Financial Statements
Key audit matter
How our audit addressed the key audit matter
In the year ended 31 December 2020, the Company disclosed sales revenue in the amount of EUR 240,603 thousand in the income statement (Note 5.5.6. Operating Revenue – PS29: Sales Revenue).
As explained in section 5.4.3 Significant Accounting Policies, s) Revenue from Contracts with Customers, revenue from contracts with customers is recognized when the control of goods or services is transferred to the customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue from contracts with customers is one of the important indicators of the Company’s business performance. Due to the importance of the item in the financial statements and the risk related to the adequacy of revenue recognition, we have identified this area as a key audit matter.
As part of our audit procedures, we assessed the adequacy of the Company’s accounting policies relating to the recognition of revenue from contracts with customers and their compliance with IFRS 15, and performed the following procedures:
- we verified the design and implementation of internal controls in relation to revenue recognition in terms of the adequacy of its recognition;
- we verified the effectiveness of the identified internal controls which we assessed to be important from the audit point of view;
- based on the selected sample and the analytical procedures, we verified the adequacy of recording the recognized revenue.
We also reviewed the information in the financial statements to assess whether the disclosures regarding revenue from contracts with customers are appropriate.
Impairment of Assets under IAS 36 – Valuation of Real Estate
Key audit matter
How our audit addressed the key audit matter
As at 31 December 2020, the Company discloses in the statement of financial position property, plant and equipment in the amount of EUR 167,510 thousand. In the year ended 31 December 2020, the Company recognized EUR 2,900 thousand of expenses from impairments of the assets.
As part of our audit procedures, we assessed the adequacy of the Company’s accounting policies regarding impairments of real estate and compliance with IFRS and performed following procedures:
- assessed whether the models used to calculate the recoverable amount meet the requirements of IAS 36 Impairment of Assets and whether the assumptions used are
As required by IAS 36 Impairment of Assets, management conducts annual impairment tests to assess signs of impairment. For real estate where higher valuation risk was detected, management made use of experts for the assessment of real estate to assess the necessary impairment of individual assets.
Significant management judgement is involved in determination of critical assumptions for the estimate of the recoverable amount of assets, accordingly, the impairment of real estate is considered to be a key audit matter.
In section 5.5.1 Non-Current Assets, Note PS2: Property, plant and equipment to the separate statement of financial position, management provided additional information on impairments related to real estate.
reasonable given the current macroeconomic situation;
- we made use of our experts to evaluate whether the methodology used by the management expert is appropriate and whether the significant real estate valuation assumptions used are adequate for given purposes.
We also reviewed the information in the financial statements to assess whether the disclosures regarding revenue from contracts with customers are appropriate.
Other Information
Management is responsible for the other information. The other information comprises the information, included in Annual report, other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we express no assurance thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, assess whether the other information is materially inconsistent with the financial statements, legal requirements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If based on our work performed we conclude that other information include material misstatement we need to report such circumstances. In relation to this and based on our procedures performed, we report that:
other information are, in all material respects, consistent with the financial statements;
other information are prepared in compliance with applicable law or regulation; and
based on our knowledge and understanding of the Company and its environment obtained in the audit, we did not identify any material misstatement of fact related to the other information.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Company, management is responsible for assessing its ability to continue as a going concern, disclosing matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reporting process and for approving audited annual report.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing rules will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing rules, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the organization to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
With those charged with governance we communicate the planned scope and timing of the audit and significant findings from the audit, including deficiencies in internal control we have identified during our audit.
We also provide those charged with governance with the statement of compliance with relevant ethical requirements regarding independence, and we communicate with them all relationships and other matters for which it may reasonably be thought to bear on independence, and, if appropriate, all the related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the audit period, and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter.
Report on Other Legal and Regulatory Requirements
Appointment of Auditor and Period of Engagement
Deloitte revizija d.o.o. was appointed as the statutory auditor of the Company on General Shareholders’ Meeting held on 31 May 2018. Our total uninterrupted engagement has lasted 9 years.
Confirmation to the Audit Committee
We confirm that our audit opinion on the financial statements expressed herein is consistent with the additional report to the Audit Committee of the Company, which we issued on 24 May 2021 in accordance with Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and the Council.
Provision of Non-audit Services
We declare that no prohibited non-audit services referred to in the Article 5(1) of Regulation (EU) No. 537/2014 of the European Parliament and the Council were provided. There are no services, in addition to the statutory audit, which we provided to the Company and which have not been disclosed in the Annual Report.
Engagement partner responsible for the audit on behalf of Deloitte revizija d.o.o. is Katarina Kadunc.
DELOITTE REVIZIJA d.o.o.
Dunajska cesta 165
1000 Ljubljana
Katarina Kadunc
Certified Auditor
Ljubljana, 24 May 2021
TRANSLATION ONLY, SLOVENE ORIGINAL PREVAILS
