Common use of Basis of preparation Clause in Contracts

Basis of preparation. The annual financial statements of Sovello AG (“Sovello” or “the Company”) were prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), in effect at the reporting date, applying the Interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and the former Standing Interpretations Committee (SIC). These annual financial statements were prepared on a voluntary basis. References to the IFRSs in these Notes are to be understood as references to the IFRSs and the International Accounting Standards (IASs) still in effect. The comparative figures were determined in accordance with the Standards in effect at December 31, 2007, and the transitional rules of the Standards published later but applicable retroactively.