Annual Report 2007 - Muehlhan AG
Annual Report 2007 - Muehlhan AG
Annual Report 2007 - Muehlhan AG
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ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents<br />
proportion of production, material and production-related administrative overheads. Contract costs are taken to expense<br />
in the period in which they are incurred. if it is likely that total contract costs will exceed the total contract revenues attributable<br />
to the respective contract, the anticipated losses are taken to expense immediately.<br />
Receivables and other assets<br />
pursuant to iaS 39.45, receivables and other assets are classified as loans and receivables.<br />
receivables and other assets are initially stated at their attributable values and subsequently carried forward at their<br />
amortized costs less write-downs. Write-downs adequately take into account all discernible risks estimated on the basis<br />
of empirical values.<br />
Profit realization<br />
income is realized in the amount of the fair value attributable to the consideration received or receivable and constitutes<br />
amounts for services rendered within the scope of normal operations less rebates, value-added tax and other taxes<br />
incurred in connection with sales.<br />
income from long-term make-to-order production is recognized in accordance with Group-internal accounting and<br />
valuation procedures to be applied with respect to long-term construction contracts (see above).<br />
Property, plant and equipment<br />
property, plant and equipment are stated at purchase cost less accumulated depreciation. depreciation is accounted<br />
for over the expected useful lives. in general, depreciation is calculated on a straight-line basis. the useful lives are related<br />
to the types of assets:<br />
buildings 5–50 years<br />
technical equipment, operating and office equipment 2–15 years<br />
repair and maintenance costs are expensed when incurred. Material renewals and improvements are capitalized if the<br />
criteria for the recognition of an asset are applicable. in principle, leased assets classified as finance leases on the basis<br />
of the respective lease agreements are accounted for as tangible fixed assets at the attributable fair value or the lower<br />
present value of minimum lease payments and reduced by accumulated depreciation subsequently.<br />
if there is an indication of an impairment of tangible fixed assets, the required write-downs are estimated. in this<br />
connection, the realizable amount (defined as the higher of net realizable value and the service value) is compared with the<br />
carrying amount of the asset. if the realizable amount is lower than the carrying amount, the balance is taken to expense.<br />
if the reason for the write-down has ceased to exist in the meantime, a write-up is recorded up to amortized costs.<br />
Goodwill and intangible fixed assets with an indeterminate useful life<br />
Goodwill is accounted for at cost of acquisition. pursuant to ifrS 3, no scheduled amortization has been recorded since<br />
1 January 2005. an impairment test is made at least once in the financial year and may result in a write-down. there are<br />
no other intangible fixed assets with an indeterminate useful life.<br />
Other intangible assets<br />
purchased intangible assets include mainly concessions, industrial and similar rights. they are stated at purchase<br />
costs less accumulated amortization. the useful lives are estimated at three to 17 years, amortization is calculated on a<br />
straight-line basis.<br />
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