Consolidated Financial Statements - L. Possehl & Co. mbH

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11. Income taxes
Consolidated Financial Statements
Deferred taxes of the individual fi nancial statements are included if they
are in accordance with the uniform accounting and valuation principles
of the Group. Otherwise, adjustments are made, e.g. for the deferred
tax assets for tax carry forwards.
As far as consolidation measures result in deferred taxes, the business
and country-specifi c average tax rates between 7.5 % and 40 % are
applied. The income taxes in the reporting year include a deferred tax
in the amount of € 1,247,000.
Of the tax expense, € 3,563,000 pertains to previous years.
12. Other taxes
The other taxes are mainly non-deductible sales tax outside of Germany
in addition to property, property transfer and motor vehicle taxes.
VI. NOTES TO THE CONSOLIDATED STATEMENTS
OF CASH FLOWS
The statement of cash fl ows was drawn up following the scheme of
DRS 2. The liquid funds include only the inventory of cash and cash
equivalents (cash, Bundesbank balances and balances at other banks
as well as checks). The changes in liquid funds resulting from exchange
rate changes are reported separately.
The other non-cash expenses essentially include allocations to specifi c
provisions as well as expenses related to depreciation or disposal of
current or fi xed assets. Income is mainly the result of equity assessments,
release of specifi c provisions and value recoveries in inventory
assets.
Notes
VII. NOTES TO THE CONSOLIDATED BALANCE SHEET
Fixed assets
On the basis of the Group’s uniform expected economic life, the depreciable
fi xed assets are principally carried during the probably economic
life applying a linear distribution of purchasing/manufacturing costs.
Required extraordinary write-offs on intangible, tangible and fi nancial
assets are accounted for.
Detailed information can be found in the analysis of the Group’s
fi xed assets. The historical acquisition/manufacturing costs as of
01/01/2005 include adjustments from the currency translation which
are neutral in effect on profi ts amounting to € 272,000 offsetting
intangible assets and € 23,457,000 offsetting tangible fi xed assets.
13. Intangible assets
in €T 12/31/2005 12/31/2004
1. Concessions, commercial
property rights and similar
rights and assets as well as
licenses hereto 1,558 963
2. Goodwill 203 169
1,761 1,132
The main item is software amounting to € 1,503,000 (previous year:
€ 935,000), for which a three-year period of use is assured.
Goodwill resulting from fi rst-time capital consolidation is directly
offset against retained earnings, in the reporting year mainly from the
fi rst consolidation of the Harburg-Freudenberger Group an amount of
€ 11,319,000 in net terms.