Annual Report 2009/2010 Geschäftsbericht 2009/2010 ... - biolitec AG

88 Annual Financial Statement Konzern-Jahresabschluss
ings or receivables are deleted from the accounts or depreciated in value. The non-current financial assets
and liabilities are included at their market value or are measured at continued acquisition costs, if a
fair value cannot be reliably identified.
Financial assets are deleted from the accounts when the contractual rights to payments do no longer
exist or when the financial assets are transferred with all their main risks and opportunities. Financial liabilities
are deleted from the accounts when the contractual obligations are fulfilled, suspended or expired.
Due to the short maturity the fair values of the trade accounts both receivable and payable from goods
and services correspond to their book values.
VI. Offsetting of financial instruments
Financial assets are offset and the net amount presented when there is a right to set off the recognized
amounts and it is intended to settle on a net basis or all related liabilities are repaid.
VII. Impairment of financial instruments
At every balance sheet date tangible evidences are analyzed whether any assets of groups of assets are
impaired. An asset is impaired if an event occurs after first recognition of said asset and tangible evidence
arises that such impairment might be necessary and if the event has reliably assessable consequences
on the cash-flow of the financial asset or the group of assets.
The criteria for “tangible evidence” include the following:
- considerable financial difficulties on the part of the debtor
- increased risk of insolvency or comparable foreign creditor protection on the part of the creditor
- the financial asset’s active market is no longer existent
- other specific evidence of a significant decrease of absence of predicted cash-flow
Should such an event occur the loss will be discounted with the original effective annual interest rate as
difference between carrying amount and cash value of the predicted cash-flow and recognized in profit
and loss. The reversing of impairments in following years will be recognized in profit and loss.