Summary of Significant Accounting and Valuation Methods
The main accounting and valuation methods are summarized in the following overview:
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Statement of Income Items |
Accounting and Valuation Method |
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Recognition of sales and income |
Sales are recognized on delivery of goods or services and on the transfer of risk to the purchaser |
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Expense recognition |
Expenses are recognized when incurred or when the service is utilized |
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Taxes |
Deferred taxes are recognized for temporary differences, for consolidation measures recognized in income and for tax loss carryforwards whenever their realization is sufficiently probable |
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Statement of Financial Position Items ASSETS |
Accounting and Valuation Method |
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Noncurrent assets |
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Intangible assets, and property, plant and equipment |
Amortized cost; depreciation /amortization on a straight-line basis |
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Investment property |
Amortized cost |
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Investments in joint ventures and associates accounted for using the equity method |
Amortized pro-rata value of the investment’s equity or the recoverable amount if lower |
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Other financial assets |
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Other primary financial assets |
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Held-to-maturity financial assets |
Amortized cost |
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Available-for-sale financial assets |
Fair value or cost |
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Loans granted and receivables |
Amortized cost |
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Derivative financial assets |
Fair value |
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Other receivables and assets |
Amortized cost; risks are accounted for through valuation allowances |
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Income tax receivables |
Amount expected to be reimbursed by the tax authorities |
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Deferred tax assets |
Undiscounted measurement using expected applicable tax rates for the period in which an asset is realized or a liability paid |
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Current assets |
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Inventories |
The lower of the net realizable value and cost using the average cost method |
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Trade receivables |
Amortized cost; risks are accounted for through valuation allowances |
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Other financial assets |
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Other primary financial assets |
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Held-to-maturity financial assets |
Amortized cost |
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Available-for-sale financial assets |
Fair value or cost |
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Loans granted and receivables |
Amortized cost |
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Derivative financial assets |
Fair value |
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Other receivables and assets |
Amortized cost; risks are accounted for through valuation allowances |
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Income tax receivables |
Amount expected to be reimbursed by the tax authorities |
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Securities and fixed-term deposits held to maturity |
Fair value or cost |
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Cash and cash equivalents |
Amortized cost |
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Statement of Financial Position Items EQUITY AND LIABILITIES |
Accounting and Valuation Method |
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Noncurrent liabilities |
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Provisions for pensions and similar obligations |
Determined using the projected unit credit method |
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Other provisions |
Present value of the future settlement value |
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Income tax provisions |
Present value of the future settlement value |
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Financial liabilities |
Initially recognized at fair value; amortized cost |
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Other financial liabilities |
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Primary interest-bearing and non-interest-bearing financial liabilities |
Amortized cost |
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Derivative financial liabilities |
Fair value |
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Other liabilities |
Amortized cost |
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Deferred tax liabilities |
Undiscounted measurement using expected applicable tax rates for the period in which an asset is realized or a liability paid |
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Current liabilities |
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Other provisions |
Future settlement value |
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Income tax provisions |
Future settlement value |
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Financial liabilities |
Initially recognized at fair value; amortized cost |
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Trade payables |
Amortized cost |
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Other financial liabilities |
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Primary interest-bearing and non-interest-bearing financial liabilities |
Amortized cost |
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Derivative financial liabilities |
Fair value |
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Income tax liabilities |
Amount expected to be paid to the tax authorities |
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Other liabilities |
Amortized cost |
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