english - About Heraeus

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The precious metal trading stock is the supply of precious metal held by the Group’s trading
companies. It is normally recognized at the lower of average cost and net realizable value.
Coverage obligations fulfilled by forward purchase transactions maturing after the closing
date are stated at the amount required to fulfill the obligation as of the closing date.
The FIFO method is used to calculate acquisition costs of the precious metal inventories.
Goodwill
According to IFRS 3, goodwill recognized as an asset is not amortized on a systematic basis
but tested for impairment annually and whenever there is an indication of impairment.
The impairment test is based on the underlying cash generating unit. If the recoverable
amount of the respective unit falls below the carrying amount, impairment losses in accordance
with IAS 36 are recognized. Reversal of impairment losses is not allowed. If goodwill
has been completely written off, its disposal will be imputed to the consolidated statement
of changes in assets.
Other intangible assets
Intangible assets acquired for consideration are capitalized at their acquisition cost. If they
have a finite useful life, they are amortized using the straight-line method over their economic
useful life. Amortization is based on useful lives of between three and ten years.
Intangible assets with an indefinite useful life are capitalized at cost and are tested for
impairment annually and whenever there is an indication of impairment. If the carrying
amount exceeds the recoverable amount, an impairment loss is recognized and the asset
is reduced to its recoverable amount. If the reasons for the impairment no longer exist,
the impairment loss is reversed. The revised amount recognized in income cannot exceed
the amortized carrying amount that would have been determined, had no impairment loss
been recognized for the asset, or a lower recoverable amount.