english - About Heraeus
english - About Heraeus
english - About Heraeus
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In connection with the capitalization of internally generated intangible assets, a basic distinction<br />
is made between research and development costs. Research costs are recognized<br />
as expenses in the income statement as incurred; development costs for future products<br />
or technologies are capitalized if the recognition criteria according to IAS 38 are cumulatively<br />
met. If the requirements for capitalization are not met, the expenses are recognized<br />
in the income statement in the year of their origin.<br />
Property, plant, and equipment<br />
The items of property, plant, and equipment are recognized at cost.<br />
The acquisition costs cover the purchase price including the directly attributable costs<br />
that are incurred in order make the asset ready for operation within its intended usage.<br />
In addition to individual costs (production material and wages), the costs of conversion for<br />
internally generated assets also include appropriate parts of the material and production<br />
overheads incurred in production (including depreciations). Borrowing costs are generally<br />
capitalized if the criteria for a qualifying asset are met. An asset qualifies for capitalization<br />
of borrowing costs if the manufacturing process lasts in excess of a period of twelve<br />
months. Financing costs that can be allocated directly are capitalized in full and financing<br />
volume that cannot be allocated directly are capitalized proportionately.<br />
Grants, subsidies, or similar public sector grants-in-aid are deducted from the cost of the<br />
item.<br />
The items of property, plant, and equipment are usually depreciated using the straight-line<br />
method based on the economic useful life of the asset. Useful lives and depreciation<br />
methods for property, plant, and equipment are reviewed periodically to ensure that depreciation<br />
methods and periods reflect the expected economic benefit of the assets. Depreciation<br />
is primarily based on the following useful lives:<br />
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