Summary of Significant Accounting and Valuation Methods

The main accounting and valuation methods are summarized in the following overview:

 

Statement of Income Items

 

Accounting and Valuation Method

 

 

 

Recognition of sales and income

 

Sales are recognized on delivery of goods or services and on the transfer of risk to the purchaser

Expense recognition

 

Expenses are recognized when incurred or when the service is utilized

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

 

Statement of Financial Position Items ASSETS

 

Accounting and Valuation Method

 

 

 

Noncurrent assets

 

 

Intangible assets, and property, plant and equipment

 

Amortized cost; depreciation /amortization on a straight-line basis

Investment property

 

Amortized cost

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

Other financial assets

 

 

Other primary financial assets

 

 

Held-to-maturity financial assets

 

Amortized cost

Available-for-sale financial assets

 

Fair value or cost

Loans granted and receivables

 

Amortized cost

Derivative financial assets

 

Fair value

Other receivables and assets

 

Amortized cost; risks are accounted for through valuation allowances

Income tax receivables

 

Amount expected to be reimbursed by the tax authorities

Deferred tax assets

 

Undiscounted measurement using expected applicable tax rates for the period in which an asset is realized or a liability paid

 

 

 

Current assets

 

 

Inventories

 

The lower of the net realizable value and cost using the average cost method

Trade receivables

 

Amortized cost; risks are accounted for through valuation allowances

Other financial assets

 

 

Other primary financial assets

 

 

Held-to-maturity financial assets

 

Amortized cost

Available-for-sale financial assets

 

Fair value or cost

Loans granted and receivables

 

Amortized cost

Derivative financial assets

 

Fair value

Other receivables and assets

 

Amortized cost; risks are accounted for through valuation allowances

Income tax receivables

 

Amount expected to be reimbursed by the tax authorities

Securities and fixed-term deposits held to maturity

 

Fair value or cost

Cash and cash equivalents

 

Amortized cost

 

Statement of Financial Position Items EQUITY AND LIABILITIES

 

Accounting and Valuation Method

 

 

 

Noncurrent liabilities

 

 

Provisions for pensions and similar obligations

 

Determined using the projected unit credit method

Other provisions

 

Present value of the future settlement value

Income tax provisions

 

Present value of the future settlement value

Financial liabilities

 

Initially recognized at fair value; amortized cost

Other financial liabilities

 

 

Primary interest-bearing and non-interest-bearing financial liabilities

 

Amortized cost

Derivative financial liabilities

 

Fair value

Other liabilities

 

Amortized cost

Deferred tax liabilities

 

Undiscounted measurement using expected applicable tax rates for the period in which an asset is realized or a liability paid

 

 

 

Current liabilities

 

 

Other provisions

 

Future settlement value

Income tax provisions

 

Future settlement value

Financial liabilities

 

Initially recognized at fair value; amortized cost

Trade payables

 

Amortized cost

Other financial liabilities

 

 

Primary interest-bearing and non-interest-bearing financial liabilities

 

Amortized cost

Derivative financial liabilities

 

Fair value

Income tax liabilities

 

Amount expected to be paid to the tax authorities

Other liabilities

 

Amortized cost