annual financial statement 2011 - conwert Immobilien Invest SE

CONWERT IMMOBILIEN INVEST SE
ANNUAL FINANCIAL 2011 STATEMENT ANNUAL REPORT 2011
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The following additional criteria are applied to specific assets:
GOODWILL
Goodwill is tested for impairment at least once each year. An impairment test is also performed
when events or circumstances indicate that the carrying amount may be impaired.
For the purpose of impairment testing, goodwill is allocated to cash-generating units. Impairment
is determined by establishing the recoverable amount of the cash-generating unit to which the
goodwill is allocated. The recoverable amount equals the relevant value in use, e.g. the present
value of the future cash flows expected to be derived from the cash-generating unit. If the recoverable
amount falls below the carrying amount of the cash-generating unit, an impairment loss
is recognised; this impairment loss may not be reversed in a subsequent accounting period. Cashgenerating
units are created by combining assets that generate independent cash flows. Additional
information on this subject is provided under note 8.2.
DEPRECIABLE, NON-CURRENT ASSETS
If there are objective indications that a depreciable non-current asset is impaired, an impairment
loss is recognised equal to the difference between the carrying amount of the assets and its
recoverable amount. The recoverable amount is determined on the basis of the value in use, i.e. the
present value of the future cash flows expected to be derived from the asset. The carrying amount
of the asset is then reduced through an adjustment account, and the impairment loss is recognised
to profit or loss.
If the amount of the impairment loss declines in subsequent reporting periods and this decline can
be objectively attributed to circumstances that occurred after the recognition of the impairment
loss, the previously recognised impairment loss is reversed (unless the asset represents goodwill).
. However, the new carrying amount of the asset may not exceed depreciated cost at the time of the
reversal. The reversal of the impairment loss is recognised to profit or loss.
2.4.7. CASH AND CASH EQUIVALENTS
Deposits with financial institutions are carried at their value as of the balance sheet date. Cash
and cash equivalents as shown on the Group cash flow statement include the amounts shown for
these items.
2.4.8. FINANCIAL INSTRUMENTS
Financial instruments are classified as financial assets or financial liabilities based on the economic
characteristics of the relevant contract. Financial assets and liabilities are only netted out
when there is a legal right to offset these amounts and plans call for settlement on a net basis or
the settlement of the related liability concurrently with the realisation of the related asset.
The fair value of financial investments that are traded in organised markets is determined by the
quoted market bid price as of the balance sheet date. The fair value of financial investments for
which there is no active market is established through valuation methods. These methods include
recent business transactions between expert, willing and independent business partners as well
as comparison with the current market value of a similar financial instrument and the analysis of
discounted cash flows.
The interest, dividends, gains and losses arising from these financial instruments are reported as income
or expenses (excl. gains and losses on derivatives used for cash flow hedging – see note 8.10.3).