Basic Information on the Parent Company and Accounting Policies

Basic Information on the Parent Company and Accounting Policies (FAS)

Basic information on the company

Digia Plc is the parent company of the Digia Group. It is domiciled in Helsinki and its registered office is at Atomitie 2, 00370 Helsinki. Digia Plc's active subsidiaries are Digia Finland Oy, Digia Commerce Oy and Digia Sweden Ab.

Accounting policies

The parent company’s financial statements have been prepared in accordance with Finnish Accounting Standards (FAS). The financial statements are based on original acquisition costs. Book values based on original costs have been reduced to correspond to fair value as necessary.

Since 1 June 2005, the parent company has operated as the Group’s administrative company and charged the Group companies for services rendered.

Group structure

Digia Plc’s Annual General Meeting of 16 March 2016 approved Digia’s demerger plan and decided on a partial demerger of Digia Plc in accordance with the said plan. Digia Plc was demerged such that all assets, liabilities and responsibilities related to its Qt business were transferred to Qt Group Plc, a new company established in the demerger. Digia Plc’s Domestic business remains with Digia. The partial demerger was registered in the Trade Register on 1 May 2016.

Pension schemes

The Group’s pension schemes are arranged through a pension insurance company. Pension premiums and expenses allocated to the financial period are based on confirmations received from the insurance company. Pension expenses are recognised as expenses for the year in which they arise.

Leasing payments

Leasing payments are recognised as annual expenses.


Fixed assets, depreciation and amortisation

Fixed assets are recognised in the balance sheet at immediate cost less planned depreciation and amortisation.

The economic lives underlying planned depreciation and amortisation are as follows:

Intangible assets  
Intangible rights 3–5 years
Other long-term expenses 3–5 years
 
Tangible assets  
Buildings and structures 25 years
Machinery and equipment 3–8 years
 

Purchases of fixed assets with an economic life of less than three years are recognised as annual expenses.

Board’s dividend proposal

According to the balance sheet dated 31 December 2016, Digia Plc’s unrestricted shareholders' equity was EUR 33,571,493, of which EUR 2,297,693 was profit for the financial year. At the Annual General Meeting, the Board of Directors will propose that a dividend of EUR 0.08 per share be paid according to the confirmed balance sheet for the fiscal year ending 31 December 2016. Shareholders listed in the shareholder register maintained by Euroclear Finland Oy on the dividend reconciliation date, 20 March 2016, will be eligible for the dividend. Dividends will be paid on 29 March 2017.