121 Annual Report 2021 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021 1. Incorporation and principal activities Country of incorporation The Cyprus Energy Regulatory Authority (the "Authority") was established in Cyprus on 21 January 2004 as a public law legal entity, according to Law 122(I)/2003 which has been replaced by the Law 129 (I)/2021. On the same date and under the same law the Office of CERA was incorporated, which operates as a separate legal entity. The CERA supervises and controls the Office of CERA. Its registered office is at 20, Agias Paraskevis, P.O.Box 24936, 2002 Strovolos, Nicosia, Cyprus.The financial statements relate to CERA and the Office of CERA. Principal activities The establishment of CERA arises from the obligations of Cyprus towards the European Union. CERA's basic mission is the supervision of the operation of the Energy Market (Electricity and Natural Gas) in a new and liberalised environment without monopolies. 2. Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Law regulating the Electricity Market. The financial statements have been prepared under the historical cost convention as modified by the revaluation of, and financial assets and financial liabilities at fair value through profit or loss. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires Top Management to exercise its judgment in the process of applying the Authority's accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Top Management's best knowledge of current events and actions, actual results may ultimately differ from those estimates. 3. Adoption of new or revised standards and interpretations During the current year the Authority adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2021. This adoption did not have a material effect on the accounting policies of the Authority.
RkJQdWJsaXNoZXIy MzU4MTg0