Values

92
Group Financial Statements
Notes
Accounting and Valuation Policies
Recognition of Income and Expense
Revenues are recognized when the product/service has been
provided and risks associated therewith transferred. Th is excludes
revenues from transactions applying the percentage of
completion method per IAS 11. Th ese include income from services
measured by percentage of completion to the extent the
point of completion thereof can be reliably determined at the
balance sheet date. Th e percentage of completion is determined
using the input-oriented method. Under the input-oriented
method, contract costs accruing through the balance sheet
date are applied as a percentage of total estimated contract
costs (cost-to-cost method).
Goodwill
Goodwill arising from business combinations accounted for in
accordance with IFRS 3 represents acquisition cost in excess of
the Group’s share of the fair value of identifi able assets, liabilities
and contingent liabilities acquired. Initial recognition is at
acquisition cost, with subsequent recognition at acquisition
cost less accumulated impairment losses. Goodwill is subject
to at least annual impairment testing. Impairment losses are
measured as the diff erence between the carrying amount and
Other Intangible Assets
Internally generated intangible assets of the non-current assets
are carried at cost which require to be capitalized in the
balance sheet if the criteria for recognition as set out in IAS 38
have been met.
Acquired intangible assets are carried at amortized cost.
Intangible assets acquired as part of a business combination
are initially recognized at fair value at the acquisition date in
accordance with IFRS 3.
Intangible assets with defi nite useful life are amortized systematically
on a straight-line basis over their estimated useful
life. Impairment losses are determined by applying the requirements
for impairment testing (IAS 36). As a rule, capitalized
Other income is recognized when it is probable that the economic
benefi ts will fl ow to Bertelsmann Group and the amount
can be measured reliably. Expenses are deferred on the basis of
underlying facts or the period of time to which they relate.
Interest income and expense are accrued. Dividends received
from unconsolidated investments are recognized when the respective
distribution is received. Revenues from services rendered
are recognized based on their percentage of completion.
the recoverable amount of the cash-generating units to which
the goodwill has been allocated. Any impairment loss is immediately
recognized in profi t or loss. Impairment of goodwill,
including impairment losses recognized in the previous interim
period, is not reversed. In the Bertelsmann Group, goodwill is
tested for impairment each year as of December 31, as outlined
in the section “Impairment Losses,” or if a triggering event
arises.
software is amortized over a period of between three and fi ve
years. Supply rights and subscriber portfolios are amortized
over a period of two to 15 years, while the amortization period
for trademarks and music, fi lm and publishing rights is three to
15 years. Licenses are amortized over the term of the respective
license agreement.
Th e useful life is reviewed annually and adjusted to refl ect
changes in expectations. Intangible assets with indefi nite useful
life are not amortized. Instead, they are subject to at least annual
impairment testing and written down to their recoverable
amount as applicable.
Bertelsmann Annual Report 2009