PDF, 3.2 MB - Pfleiderer AG
PDF, 3.2 MB - Pfleiderer AG PDF, 3.2 MB - Pfleiderer AG
SFAS 13 lists the following criteria: The lease transfers ownership of the property to the lessee at the end of the lease term. The lease contains a bargain purchase option to purchase the leased property for considerably less than its fair value. The lease term is equal to 75 percent or more of the estimated economic life of the leased property. The present value at the beginning of the lease term of the future minimum lease payments equals or exceeds 90 percent of the fair value of the leased property. All other leases in which the Group is the lessee must be treated as operating leases, with the consequence that the lease payments are expensed as incurred. Stock-Based Compensation On the basis of SFAS 123 (Accounting for Stock-Based Compensation), the Company has decided to value the stock options that have been granted in accordance with the intrinsic value based method in compliance with Accounting Principles Board Opinion 25 (Accounting for Stock Issued to Employees) and related interpretations. In accordance with APB 25, the difference between the market price of the Company’s shares at the date of issue of the option and the exercise price of the subscription price that has been granted is recorded in the personnel expenses. The option available under SFAS 148 (Accounting for Stock-Based Compensation – Transition and Disclosure) that was published in December 2002 on transition to the fair value method has not been applied. The following table provides information on the personnel expenses and the impact that application of the fair values prescribed by SFAS 123 would have had on earnings (after taxes) and earnings per share. Dec. 31, 2004 Dec. 31, 2003 Earnings after minority interests and taxes Less: Personnel expenses for stock-based compensation ‘000 euros 33,860 –45,762 in accordance with the fair value method ‘000 euros –945 –893 Pro forma earnings ‘000 euros 32,915 –46,655 Earnings per share euros 0.79 –1.07 Pro forma earnings per share euros 0.77 –1.09 Earnings per share (diluted) euros 0.79 –1.07 Pro forma earnings per share (diluted) euros 0.77 –1.09 80
Accruals for Pensions and Similar Obligations Accruals for pensions and similar obligations are measured in accordance with the projected unit credit method. A minimum obligation is recognized in some cases, i.e. an amount in excess of the pension obligations recognized as expense in the past. If no intangible asset has to be recognized or if there are additional obligations exceeding the amount of the intangible asset, the amount is offset against equity. Unrealized actuarial gains and losses are amortized in accordance with the terms of the specific pension plan, but at a maximum over the remaining period of service or the life expectancy of the beneficiaries. Other Accruals Accruals, including accruals for environmental protection measures resulting from legal claims, local authority regulations or another basis, are set up at the date when it is probable that they have been incurred and their amount can be reasonably estimated, i.e. when a legal obligation exists. Changes to these estimates are recorded in the period in which the change occurs. While the Company is unable to estimate the impact of future laws, the Group assumes that a final ruling on these matters will not have a significant impact on the consolidated financial statements. Advertising Expenses Expenses for advertising and sales promotion are recognized as expense at their inception. In the past financial year, expenses for advertising and sales promotion amounted to 3,872 thousand euros compared with 5,780 thousand euros in the previous year. The expenses fell compared with the previous year, because the launch of a new brand and selling concept in the Business Segment Engineered Wood had resulted in higher costs in 2003. Research and Development Costs Research and development costs are expensed as incurred. Deferred Taxes Deferred tax assets and liabilities are set up for all temporary differences between the tax base and the consolidated balance sheet and for tax loss carryforwards (“temporary concept”). The tax rates to be applied are the enacted tax rates that will apply in the periods in which the temporary differences are expected to reverse. The impact of changes in tax laws on deferred tax assets and liabilities is recognized in income in the period in which the changes are enacted. Deferred tax assets are only recognized if it is probable that the related tax benefits will be realized. When estimating the recoverability of deferred tax assets, the Company considers whether there is a more than 50 percent chance that they will be realized. 81 FINANCIAL STATEMENTS/NOTES PFLEIDERER GROUP
- Page 33 and 34: GERMANY GDP in Germany increased by
- Page 35 and 36: y expanding foreign and export rati
- Page 37 and 38: Production Pfleiderer Engineered Wo
- Page 39 and 40: Aside from its leading market prese
- Page 41 and 42: Due to its very low construction he
- Page 43: Procurement In order to take advant
- Page 46 and 47: Research & Development New “Multi
- Page 48 and 49: In September 2004, Pfleiderer appro
- Page 50 and 51: Personnel As of December 31, 2004,
- Page 52 and 53: Pfleiderer Corporate Guidelines for
- Page 54 and 55: Economic and Political Risks and In
- Page 56 and 57: No liquidity risk exists at present
- Page 58 and 59: wodego® is the latest brand in Pfl
- Page 60 and 61: Key Figures 2004 2003 No. of shares
- Page 62 and 63: Investor Relations Activities Indiv
- Page 64 and 65: While the prices paid for paraffin
- Page 67 and 68: TURKEY The Turkish economy reported
- Page 69 and 70: Liabilities and Shareholders’ Equ
- Page 71 and 72: Pfleiderer Consolidated Statement o
- Page 73 and 74: Comprehensive income 69 Other compr
- Page 75 and 76: Infrastructure Technology Consolida
- Page 77 and 78: Scope of Consolidation The consolid
- Page 79 and 80: The activities of the Poles & Tower
- Page 81 and 82: Sales of receivables are treated wi
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- Page 87 and 88: 1. Liquid funds 2. Securities class
- Page 89 and 90: 7. Intangible assets As in the prev
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- Page 93 and 94: 16. Long-term deferred income 17. D
- Page 95 and 96: 18. Stockholders’ equity The foll
- Page 97 and 98: Stock Appreciation Rights 2000 Unde
- Page 99 and 100: 20. Derivative financial instrument
- Page 101 and 102: Derivative financial instruments ar
- Page 103 and 104: The following table reconciles the
- Page 105 and 106: 22. Pensions and similar obligation
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- Page 109 and 110: 1. Contingent liabilities VII. Othe
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- Page 125 and 126: Pfleiderer AG Statement of Income 2
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- Page 129 and 130: Hanno C. Fiedler Chairman of the ma
- Page 131 and 132: Economic Glossary Asset deal Descri
- Page 133 and 134: P Particleboard 30, 32, 34, 43, 54
Accruals for Pensions and Similar Obligations<br />
Accruals for pensions and similar obligations are measured in accordance with the projected<br />
unit credit method. A minimum obligation is recognized in some cases, i.e. an amount in excess<br />
of the pension obligations recognized as expense in the past. If no intangible asset has to be<br />
recognized or if there are additional obligations exceeding the amount of the intangible asset,<br />
the amount is offset against equity. Unrealized actuarial gains and losses are amortized in<br />
accordance with the terms of the specific pension plan, but at a maximum over the remaining<br />
period of service or the life expectancy of the beneficiaries.<br />
Other Accruals<br />
Accruals, including accruals for environmental protection measures resulting from legal claims,<br />
local authority regulations or another basis, are set up at the date when it is probable that they<br />
have been incurred and their amount can be reasonably estimated, i.e. when a legal obligation<br />
exists.<br />
Changes to these estimates are recorded in the period in which the change occurs. While the<br />
Company is unable to estimate the impact of future laws, the Group assumes that a final ruling<br />
on these matters will not have a significant impact on the consolidated financial statements.<br />
Advertising Expenses<br />
Expenses for advertising and sales promotion are recognized as expense at their inception. In<br />
the past financial year, expenses for advertising and sales promotion amounted to 3,872 thousand<br />
euros compared with 5,780 thousand euros in the previous year. The expenses fell compared<br />
with the previous year, because the launch of a new brand and selling concept in the Business<br />
Segment Engineered Wood had resulted in higher costs in 2003.<br />
Research and Development Costs<br />
Research and development costs are expensed as incurred.<br />
Deferred Taxes<br />
Deferred tax assets and liabilities are set up for all temporary differences between the tax base<br />
and the consolidated balance sheet and for tax loss carryforwards (“temporary concept”). The tax<br />
rates to be applied are the enacted tax rates that will apply in the periods in which the temporary<br />
differences are expected to reverse. The impact of changes in tax laws on deferred tax assets and<br />
liabilities is recognized in income in the period in which the changes are enacted. Deferred tax<br />
assets are only recognized if it is probable that the related tax benefits will be realized.<br />
When estimating the recoverability of deferred tax assets, the Company considers whether there<br />
is a more than 50 percent chance that they will be realized.<br />
81<br />
FINANCIAL STATEMENTS/NOTES PFLEIDERER GROUP
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