PDF (3.6 MB) - Valora

Financial RepoRt ValoRa 2009
notEs to tHE consolIdatEd fInancIal statEmEnts
cial statements in the year in which such modifications are made. Estimations and assumptions
bearing significant risks of substantial future changes to book values are listed below:
Goodwill. The consolidated balance sheet carries goodwill from continuing operations at
CHF 101.1 million (see note 22). As explained above, this goodwill is subjected to an impairment
test whenever evidence suggests that its realisable value may have diminished and in any event at
least once annually.
The impairment tests are based on estimated future free cash flows, using discounted cash
flow analysis, for each of the cash generating units concerned. The principal factors affecting these
valuations are the estimated net revenues, estimated operating margins and the discount rate
applied.
Net pension asset. The Group maintains occupational pension schemes of its own which are
classified as defined benefit schemes for IFRS purposes. IFRS requires an annual comparison of
the pension plans’ assets with the dynamically calculated net present value of their benefit obligations.
These valuations showed a pension plan surplus for the Swiss schemes which is capitalised
in the consolidated balance sheet and which corresponds to that portion of the surplus which the
Group is entitled to offset against its benefit obligations under the plans concerned. These valuations
are based on a number of assumptions, principal among which are the discount rate applied
to future benefits, the expected rate of return on the invested capital, and the expected future pensions
and salaries of the plan participants (see note 30). Actual outcomes may diverge considerably
from the assumptions made.
Income tax. Under IFRS rules, that portion of any tax loss carry forwards which can be expected
to result in future tax savings should be recognised as a deferred tax asset. The amount of
tax savings which are then actually achieved will depend on the level of net income generated before
the tax loss carry forwards expire. This means that future net income may be impacted by impairments
on deferred tax assets if the profits the Group generates during the relevant period are
below initial expectations. Conversely, additional net income may be recognised if the profits the
Group generates exceed expectations and previously unrecognised tax loss carry forwards can be
drawn on.
Provisions. Provisions are created in respect of imminent litigation, if applicable expert opinion
holds that the probability of a loss occurring is greater than that of its failing to materialise. A
further prerequisite for the creation of such provisions is that the amount of the potential loss can
be reliably estimated. In assessing whether a provision is appropriate and what its amount should
be, the best available estimates and assumptions are made with regard to the situation as of the
balance sheet date. Since new evidence and unfolding events can have a significant effect on subsequent
outcomes, earlier estimates and assumptions may be revised in the light of later evidence
and events, if their effect on these estimates and assumptions is substantial (see note 29).
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