Annual Report (PDF) - Feintool

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28 Notes to the Consolidated Financial Statements Currency translations The annual financial statements of foreign subsidiaries have been translated into Swiss francs as follows: Income statement at average rates 12 months, balance sheet at exchange rates valid at financial year end. Any resulting translation differences, including those from equity hedging transactions, are recognized directly through equity. Currency gains/losses from currency translations of group companies are recorded in the income statement. Accounting policies Current assets/current liabilities Assets and liabilities with a maturity of 12 months or less are considered current assets/liabilities. Cash and cash equivalents This position contains cash and cash accounts as well as marketable securities. Marketable securities are valued at market value at the balance sheet date. In accordance with the Anglo-American treatment of treasury stock, shares of the holding company are deducted from equity. Therefore, treasury stock is not included in cash and cash equivalents. Accounts and notes receivable Accounts and notes receivable contain receivables from ordinary business activities. Bad debt provisions are based on a best estimate of contingent risk of loss. Inventories, work in progress Raw materials and purchased goods are valued at average cost or by the first-in, first-out (FIFO) method. Manufactured goods are valued at production costs, including production overhead, but in any case at the lower of cost or market. A valuation reserve is recorded for inventories with a low turnover and overaged inventories are written off completely. Any profit margins contained in inventories from intercompany activities are eliminated on consolidation. We refer to the “Revenue recognition” principles for application of the percentage of completion method (POC). Tangible assets Land and building were revalued as of September 30, 1995, based on assessments by external experts. Resulting adjustments to the book values were made taking into consideration deferred taxes. The valuation of other tangible assets is based on cost less accumulated depreciation. Straight-line depreciation is used over the estimated useful lives of tangible assets. The following guidelines for useful lives apply: Land: no depreciation Buildings: max. 40 years Plant and equipment: max. 15 years Automotive: max. 5 years
Intangible assets Intangible assets and development expenses are only capitalized if they meet the requirements of ARR guideline no. 9. All other expenses for identifiable, intangible assets are treated as cost for the period in which they occur. The following depreciation guidelines for useful lives usually apply: Goodwill: max. 15 years Patents, brands: max. 10 years Financial leases Financial leases are capitalized. Leasing expenses resulting from financial leases are charged to financial expenses and to depreciation. Operating leases are not stated in the balance sheet but disclosed in the Notes. Short-term liabilities Liabilities with a maturity of less than one year are considered to be short-term. The current portion of long-term liabilities is also included. Provisions Provisions are made for all known risks and contingent liabilities. They are computed based on statistical risk calculation methods. Retirement plan commitments Retirement plan benefits for most employees are provided by legally autonomous pension funds or covered through individual insurance policies. In the few cases in which the employer guarantees the retirement benefits, these obligations are calculated according to the projected unit credit method and the appropriate provisions are made. To the extent that the retirement plan obligation is guaranteed under a Swiss defined contribution system, the contributions as stipulated in the regulations that were paid to the legally autonomous pension funds have been entered unchanged in the income statement. No incorrect amounts were recorded in the calculations carried out regularly by any of these pension funds. Deferred taxes Provisions for deferred taxes include tax effects stemming from the differences between financial reporting and valuation of assets/liabilities based on local tax rules and regulations. Computation of deferred tax provisions is based on the liability method. Future tax liability reductions due to tax loss carry-forward effects are only included if there is a high likelihood that these tax liability reductions can be effected within a reasonable period. Revenue recognition As a general principle sales revenue is recognized at the time of delivery of goods/services. Sales revenue does not include value added taxes (VAT), credit notes or discounts. Contracts with long-term character and a degree of completion of over 70% are posted based on the percentage of completion method (POC). In this case revenues and costs are computed based on the degree of completion. 29
Page 3 and 4: Contents 2 Profile 3 Key Figures 4
Page 5 and 6: Feintool Group 1999/00 1998/99 1997
Page 7 and 8: Highlights The following highlights
Page 9 and 10: Asia America Europe The Group Manag
Page 11 and 12: ising order intake. The adoption of
Page 13 and 14: Brake discs have to absorb and cont
Page 15 and 16: The company plans to retain its tec
Page 17 and 18: IMA’s high-performance assembly p
Page 19 and 20: Highlights � Award of QS 9000 and
Page 21 and 22: Motorists and their passengers rely
Page 23: Shareholder structure (30.9.00) Num
Page 26 and 27: 24 Consolidated Balance Sheet CHF 1
Page 28 and 29: 26 Consolidated Statement of Cash F
Page 32 and 33: 30 Notes to the Consolidated Financ
Page 38 and 39: 36 5 Summary of property, plant and
Page 40 and 41: 38 Auditor’s Report on Consolidat
Page 42 and 43: 40 Balance Sheet of Feintool Intern
Page 44 and 45: 42 Notes to the Financial Statement
Page 46 and 47: 44 Notes to the Financial Statement
Page 48 and 49: 46 Report and Proposal of the Board
Page 50: 48 Adresses Switzerland Feintool In

Annual Report (PDF) - Feintool

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