Annual Report 2010/11 - Sonova

100
LeASING
Assets that are held under leases which effectively transfer
to the Group the risks and rewards of ownership (finance
leases) are capitalized at the inception of the lease at the
fair value of the leased property or, if lower, at the present
value of the minimum lease payments. Minimum lease payments
are the payments over the lease term that the Group
is or can be required to make, excluding contingent rent,
costs for services and taxes to be paid by the Sonova Group
and reimbursed from the lessor, together with any amounts
guaranteed by Sonova or by a party related to the Group.
Assets under financial leasing are depreciated over the
shorter of their estimated useful life or the lease term.
The corresponding financial obligations are classified as
“short­term debts” or “non­current financial liabilities,”
depending on whether they are payable within or after
twelve months.
Leases of assets under which all the risks and rewards of
ownership are effectively retained by the lessor are classified
as operating leases, and payments are recognized as
an expense on a straight­line basis over the lease term
unless another systematic basis is more representative of
the time pattern of the Group’s benefit.
INTANGIBLe ASSeTS
Purchased intangible assets such as software, licences and
patents, are measured at cost less accumulated amortization
(applying the straight­line method) and any impairment
in value. Software is amortized over a useful life of 3–5
years. Intangibles relating to acquisitions of subsidiaries
(excluding goodwill) consist generally of technology,
client relationships, customer lists, and brand names and
are amortized over a period of 3–15 years. other intangible
assets are generally amortized over a period of 3–10
years. development costs capitalized for projects not yet
completed are not amortized, but test ed for impairment on
an annual basis. except for goodwill, the Sonova Group
has no intangible assets with an indefinite useful life.
BuSINeSS CoMBINATIoNS ANd GoodWILL
Business combinations are accounted for using the purchase
method of accounting. The cost of a business combination
is equal to the fair values, at the date of exchange,
of assets given, liabilities incurred or assumed, and equity
instruments issued by the Sonova Group, in exchange for
control over the acquired company. Any difference between
the cost of the business combination and the net fair value
of the identi fiable assets, liabilities, and contingent liabilities
so recognized is treated as goodwill. Goodwill is not
amortized, but is assessed for impairment annually in the
first half of the financial year, or more frequently if events
or changes in circumstances indicate that its value might be
impaired. Acquisition­related costs are expensed.
oTHeR NoN-CuRReNT FINANCIAL ASSeTS
other non­current financial assets consist of invest ments
in third parties and long­term receivables from associates
and third parties. Investments in third parties are classified
as financial assets at fair value through profit or loss and
long­term receivables from associates and third parties are
classified as loans and receivables (see Note 3.4).
SHoRT-TeRM deBTS
Short­term debts consist of short­term bank debts and all
other interest bearing debts with a maturity of twelve
months or less. Given the short­term nature of these debts
they are carried at nominal value.
oTHeR CuRReNT FINANCIAL LIABILITIeS
other current financial liabilities primarily consist of financial
liabilities resulting from earn­out agreements as well
as deferred payments from acquisitions with a maturity of
twelve months or less. In the case of earn­outs they are
classified as financial liabilities at fair value through profit
or loss. Given the short­term nature of deferred payments
these liabilities are carried at nominal value.