Annual Report 2007 - Muehlhan AG

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54 the assets and liabilities of foreign subsidiaries with a functional currency other than Euro are translated into Euro at mid-rates at the balance sheet date. income and expenses are translated at average annual rates. differences arising on the translation of assets and liabilities compared to translation in the prior year at other exchange rates are accounted for without an income effect and shown separately under equity. Goodwill with respect to the acquisition of foreign subsidiaries arising in connection with the initial consolidation is translated into Euro and carried forward accordingly. the important exchange rates per Euro are shown below as follows: Exchange rate at the balance sheet date Average rate of exchange aEd 5.46 5.06 CNy 10.75 10.45 dKK 7.46 7.45 Gbp 0.74 0.69 NoK 7.97 8.00 plN 3.59 3.78 Qar 5.36 5.02 rub 35.99 35.07 SGd 2.12 2.07 trl 1.71 1.78 uSd 1.47 1.38 Liquid assets Cash and cash equivalents comprise cash-in-hand and bank balances. bank balances not directly required to finance current assets are invested for a term of up to three months. Cash and cash equivalents shown on the balance sheet are identical with cash and cash equivalents shown in the cash flow statement. Inventories inventories are stated at purchase or production costs or net realizable value at the balance sheet date, if lower. production costs include direct costs and a reasonable proportion of production, material and production-related administration overheads. Construction contracts if the result of a construction contract can be reliably estimated, revenue and costs are recognized in accordance with the percentage of completion at the balance sheet date. the percentage of completion is calculated on the basis of the contract costs incurred up to the balance sheet date compared with estimated total contract costs unless this procedure does not result in a proper estimate of the percentage of completion. unless the result of a construction contract can be reliably estimated, contract revenue can only be recorded in the amount of the contract costs incurred which are likely to be realized. Contract costs include direct costs and a reasonable
ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents proportion of production, material and production-related administrative overheads. Contract costs are taken to expense in the period in which they are incurred. if it is likely that total contract costs will exceed the total contract revenues attributable to the respective contract, the anticipated losses are taken to expense immediately. Receivables and other assets pursuant to iaS 39.45, receivables and other assets are classified as loans and receivables. receivables and other assets are initially stated at their attributable values and subsequently carried forward at their amortized costs less write-downs. Write-downs adequately take into account all discernible risks estimated on the basis of empirical values. Profit realization income is realized in the amount of the fair value attributable to the consideration received or receivable and constitutes amounts for services rendered within the scope of normal operations less rebates, value-added tax and other taxes incurred in connection with sales. income from long-term make-to-order production is recognized in accordance with Group-internal accounting and valuation procedures to be applied with respect to long-term construction contracts (see above). Property, plant and equipment property, plant and equipment are stated at purchase cost less accumulated depreciation. depreciation is accounted for over the expected useful lives. in general, depreciation is calculated on a straight-line basis. the useful lives are related to the types of assets: buildings 5–50 years technical equipment, operating and office equipment 2–15 years repair and maintenance costs are expensed when incurred. Material renewals and improvements are capitalized if the criteria for the recognition of an asset are applicable. in principle, leased assets classified as finance leases on the basis of the respective lease agreements are accounted for as tangible fixed assets at the attributable fair value or the lower present value of minimum lease payments and reduced by accumulated depreciation subsequently. if there is an indication of an impairment of tangible fixed assets, the required write-downs are estimated. in this connection, the realizable amount (defined as the higher of net realizable value and the service value) is compared with the carrying amount of the asset. if the realizable amount is lower than the carrying amount, the balance is taken to expense. if the reason for the write-down has ceased to exist in the meantime, a write-up is recorded up to amortized costs. Goodwill and intangible fixed assets with an indeterminate useful life Goodwill is accounted for at cost of acquisition. pursuant to ifrS 3, no scheduled amortization has been recorded since 1 January 2005. an impairment test is made at least once in the financial year and may result in a write-down. there are no other intangible fixed assets with an indeterminate useful life. Other intangible assets purchased intangible assets include mainly concessions, industrial and similar rights. they are stated at purchase costs less accumulated amortization. the useful lives are estimated at three to 17 years, amortization is calculated on a straight-line basis. 55
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Annual Report 2007
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The Group is represented locally in
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Content 2 ManageMent 2 Foreword 5 E
Page 7 and 8: ManageMent divisions share Group Ma
Page 9 and 10: Executive Bodies executive board Dr
Page 19 and 20: One is successful not primarily as
Page 21 and 22: Continued and consistently good bus
Page 23 and 24: ManaGeMent divisions share Group Ma
Page 25 and 26: The marine markets are interconnect
Page 29 and 30: In our industry segments, a technol
Page 31 and 32: ManaGeMent divisions share group Ma
Page 37 and 38: We issued a letter of credit for uS
Page 53 and 54: Retained earnings Equity Minority i
Page 57: ManaGeMent divisions share Group Ma
Page 63 and 64: 3. FINANCIAL ASSETS ManaGeMent divi
Page 65 and 66: sand (previous year: Eur 13,053 tho
Page 71 and 72: other provisions developed as follo
Page 73 and 74: eakdown by divisions: ManaGeMent di
Page 79 and 80: Statement of the Auditors´ Report
Page 81 and 82: ussia Muehlhan Morflot OOO 198035 S
Page 83 and 84: Contacts and Financial Calendar mue
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Annual Report 2007 - Muehlhan AG

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