Annual Report 2011 - R+V Versicherung

Notes
Accounting and valuation methods
The 2011 Annual Financial Statement of R+V Versicherung AG
was prepared in accordance with the provisions of the Handelsgesetzbuch
(HGB, or German Commercial Code) in conjunction
with the Verordnung über die Rechnungslegung von
Versicherungsunternehmen (RechVersV, or German Federal
Regulations on Insurance Accounting).
Land, similar rights and buildings including buildings on
third party land were accounted for with depreciation of
impaired acquisition or manufacturing costs using the lower
of cost or market principle for permanent reduction in value.
Scheduled straight line depreciation was used at the rate
allowed under taxation law.
Shares in affiliated companies and holdings as well as other
capital investments were accounted for at acquisition costs.
In the event of permanent impairment in value, these items
were reduced by depreciation. The conversion of holdings
held in foreign currencies was done using the average spot
exchange rate valid at the point in time of the acquisition.
Loans to affiliated companies were valued as with other
variable yield securities and other loans and deposits at banks,
depending on their classification.
Shares, investment certificates and other variable yield
securities as well as bearer bonds and other fixed interest
securities were valued at acquisition costs, reduced by
depreciation in accordance with the strict lower of cost or
market principle, unless they were allocated to assets.
Shares, investment certificates and other variable yield
securities as well as bearer bonds and other fixed interest
securities, which were allocated to assets in accordance with
§ 341 b Section 2 Clause 1 HGB, were, provided a temporary
reduction in value was involved, recorded as of 31 December
2011 at their sustained value.
Management Report 4 Annual Financial Statements 35 Further Information 62 43
Income statement /
Notes
For shares held directly, the market value was shown as the
sustained value. For a special fund, which is managed as a
mixed fund, as well as for a public fund, which illustrates a
share index, the sustained value was calculated on the basis of
the assets contained. Here, the sustained value of the shares
was calculated using a gross rental method taking account of
external profit estimates. A maximum additional charge of
20% over the market price was taken into account. In the case
of bearer bonds, the repayment amount was shown if the
debtor was creditworthy, otherwise at market value. For the
other investment certificates, the market value was used to
calculate the sustained value.
The bearer bonds and other fixed interest securities allocated
to assets were shown at their repayment value, however,
no higher than the acquisition values insofar as the debtors
was considered creditworthy.
If the reason for depreciation of a current or fixed asset
carried out in the past no longer exists, write ups were carried
out in accordance with § 253 Section 5 Clause 1 HGB to the
current value up to a maximum of the acquisition value.
Bonded debt receivables and loans were shown at acquisition
value. Differences between the acquisition costs and the
repayment amount were amortised using the effective interest
method.
Bearer bonds and deposits at banks were shown at the
repayment amount.
Other loans also includes derivative financial instruments.
The option to simulate economic security relationships on the
balance sheets through the formation of valuation units was
used in the case of perfect micro-hedges (critical term match).
The compensatory changes in value arising from hedged
risks did not affect the current result in accordance with the
’net hedge presentation method’. Information about the
valuation units is given in the Management Report.