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84 being focused: being better
Accrued Liabilites for Pensions and Similar Obligations
Accruals for pensions and similar obligations are calculated using the projected unit credit
method. A minimum obligation is calculated, i.e., the amount in excess of those pension
accurals affecting income taken into account in the past. If no intangible asset is recognized,
or if there are additional obligations exceeding the value of the intangible asset, the amount is
offset against equity. Not realized actuarial profits and losses are amortized in accordance
with the individual details of the pension plan, generally at longest over the remaining period of
service of the employee or the life-expectancy or his/her dependents.
Other Accruals
Other accruals, including accruals for environmental protection measures resulting from legal
claims, local authority regulations or another basis are formed at the date when it is probable
that they have been incurred and their amount can be reasonably estimated, i.e. where a legal
obligation exists.
The Company sets up accruals in connection with environmental protection measures
where it seems likely that a claim could be made and where it can be estimated. Changes to
these estimates are recorded in the accounting period in which the change takes place. While
the Company cannot estimate the effect of future laws, the Group assumes that a final ruling
on these matters will not have a significant effect on the consolidated financial statements.
Future expenses for environmental protection measures are not discounted to their present
value. The Company carries a receivable for estimated claims against insurance companies
or third parties where it appears likely that such claims will be received.
Advertising Costs
Expenses for advertising and sales promotions are expensed at the date of their inception. In
the year under review, expenses for advertising and sales promotions came to 6,229 thousand
euros, compared to 1,755 thousand euros in the previous year. The significant increase in
these expenses compared to 2001 is mainly due to costs incurred in connection with a new
brand strategy conceived for the Wood-Based Panels Business Center.
Research and Development Costs
Expenses for research and development are expensed as incurred.