english - About Heraeus
english - About Heraeus
english - About Heraeus
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charge is recognized where the recoverable amount is lower than the carrying amounts.<br />
Should the reasons for the impairment no longer be valid, an impairment loss is reserved,<br />
but not exceeding the value of the amortized cost.<br />
Deferred tax assets/liabilities: The realization of deferred tax assets depends on the future<br />
taxable profits of the respective Group companies. Corresponding allowances are recognized<br />
when it is uncertain if future earnings will be sufficient to take advantage of the tax<br />
loss carryforwards. The continued valuation of deferred tax assets is based on internal<br />
projections of the future earnings of the company.<br />
Receivables are valued at amortized cost using the effective interest method. Allowances<br />
for receivables are recognized in income. Evidence for an allowance could be, for example,<br />
when the financial difficulties of a debtor become known or payment delays occur. When<br />
assessing the need for an allowance, regional and sector-specific conditions are considered.<br />
Valuation adjustments are based on historical values, on client solvency and the age,<br />
period overdue, insurance policies, and customer-specific risks. Stated values for receivables<br />
are corrected using an allowance account.<br />
Pension provisions and similar obligations are measured using actuarial methods, applying<br />
the following valuation parameters, among others: future developments in compensation<br />
and pensions, the expected performance of plan assets, employee turnover, and the life<br />
expectancy of beneficiaries, as well as the discount rate. Actuarial gains and losses are<br />
recognized directly in retained earnings. They result from the variance between the actual<br />
development in pension obligations and pension assets and the assumptions made at the<br />
beginning of the year as well as the updating of actuarial assumptions.<br />
Other provisions cover, among other things, risks resulting from legal disputes. In order<br />
to determine the amount of the provisions, the facts related to each case, the size of the<br />
claim, claims awarded in similar cases, and independent expert advice are considered<br />
along with assumptions regarding the probability of a successful claim and the range of<br />
possible claims. The actual costs may deviate from these estimates. When discounting<br />
is applied to long-term provisions, assumptions have to be made with regard to the interest<br />
rate to be used.<br />
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