Annual Report 2005/06 - voestalpine
Annual Report 2005/06 - voestalpine
Annual Report 2005/06 - voestalpine
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In accordance with IAS 12, all temporary<br />
valuation and reporting differences between<br />
tax values and consolidated financial statements<br />
are included in the deferred taxes.<br />
Deferred tax assets on losses carried forward<br />
are capitalized to the extent that they will be<br />
reversed within a foreseeable period.<br />
The calculation of deferred taxes is based on<br />
the respective local tax rates. Fixed future tax<br />
rates are also taken into account for deferred<br />
values.<br />
emission righTs<br />
After the withdrawal of IFRIC 3 “Emission<br />
Rights” by the IASB, emission rights are<br />
measured at cost amounting to zero as the<br />
rights have been allocated free of charge.<br />
invenTories<br />
Inventories are stated at the lower of cost and<br />
net realizable value. Net realizable value<br />
represents the estimated selling price less all<br />
estimated costs of completion and costs to be<br />
incurred in marketing, selling and distribution.<br />
Where inventories are comparable, costs are<br />
determined by the weighted average method<br />
or similar methods. Costs include directly<br />
attributable expenses and all proportionate<br />
cost of materials and production overheads,<br />
based on normal capacity usage. Interest<br />
charges and selling and administrative<br />
expenses are not capitalized.<br />
Consolidated Financial Statements<br />
TraDe anD oTher reCeivaBles<br />
Trade and other receivables are stated at<br />
nominal value. Individually identifiable risks<br />
are reflected in credit insurances. Noninterest<br />
or low-interest-bearing receivables<br />
with a remaining term in excess of one year<br />
are recorded at discounted present value.<br />
Construction contracts are based on reliable<br />
measurement of the stage of completion,<br />
contract costs and contract revenue, which<br />
are recognized as revenue and expenses<br />
respectively of the contract activity (percentage-of-completion<br />
method).<br />
Accruals are reported under other receivables<br />
and other liabilities.<br />
Cash anD Cash eqUivalenTs<br />
Cash and cash equivalents include cash at<br />
banks and on hand and checks and are<br />
recognized at fair value.<br />
pensions anD oTher<br />
employee BeneFiTs<br />
Employee benefits include provisions for<br />
severance payments, pensions and longservice<br />
bonuses and are recognized according<br />
to IAS 19 using the projected-unit-credit<br />
method.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2005</strong>/<strong>06</strong>
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