Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

Notes
Following the book value method (Section
312, para. 1, No. 1 of the Commercial
Code), equity consolidations for the
subgroup statement of Amino GmbH,
Frellstedt/Germany results in debit differences
on the liabilities side of Tt * 3,618
and for Nordeutsche Zucker-Raffinerie
GmbH, Frellstedt/Germany of Tt 145.
For Syral S.A., Marckolsheim/ France a
debit difference on the assets side of
Tt 19,910 (first consolidated reporting
date, 1 October 2002).
Interim results of non-marginal significance
have been eliminated from the
consolidated statement in line with Section
304 Commercial Code. We have
abstained from eliminating interim results
of associated companies, according to
Section 312, para. 5.
Sales, expenditures and earnings,
accounts receivable and obligations between
fully consolidated companies have
been zeroed out. There has been no
charging of third-party debtor relations.
The assets and liabilities of companies
included transferred in the consolidated
statement are uniformly balanced in line
with the principles described below.
5. Notes on Balance Sheet Items
The intangible assets acquired for payment
are shown at cost less straight-line
depreciation, assessed in accordance with
their standard estimated useful life.
Tangible assets are shown at acquisition
or production cost. In addition to
directly attributable production costs,
assets manufactured in-house are also
assigned a costing supplement according
to taxation-related valuation regulations.
Interest attributable to the period of pro-
duction is not entered on the assets side.
In as far as tangible assets have a
limited useful life, they are depreciated at
annual rates estimated to write off their
costs over their estimated useful life. The
useful life is assessed on the basis of fiscal
regulations, as long as generally useable
assets are affected.
Scheduled depreciation – where
allowed – principally follows the declining
balance method of depreciation. We
have also exercised the option of transferring
from declining to straight-line
depreciation. Further, for acquisitions
made before 1 January 2004, we have
drawn on directive 44 of the income tax
regulations, which simplifies some depreciation
procedures (full depreciation rate
for assets acquired in the first six months
of the year, half the rate for acquisitions
made in the second half of the year). For
acquisitions made after 31 December
2003, depreciation is made proportionally
in line with the new, changes regulations.
The effects of this are of marginal significance.
Low-valued assets are written off
in full in the year of their acquisition and
are entered as retirements after five years.
Unplanned depreciation is effected using
anticipated and sustained loss of value.
In 2003/2004, Nordzucker AG posted Tt
4,888 – the group Tt 6,852 – to such
adjustments attached to lower values.
In taking advantage of taxation concessions
in Germany, in previous years we
have carried out special write-downs in
accordance with Section 4 of the development
area law (for the new Bundesländer),
Section 3 of the law promoting
government aid to border regions,
Section 6b of the income tax law (on
transferring profit from sales) and direc-
50
* Tt = thousand Euros