Annual Report 2007 - Muehlhan AG
Annual Report 2007 - Muehlhan AG
Annual Report 2007 - Muehlhan AG
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ManaGeMent divisions share Group ManaGeMent report group Consolidated FinanCial stateMents<br />
Research and development expenses<br />
research and development costs are taken to expense in the period incurred. the conditions necessary in accordance<br />
with iaS 38 for a capitalization of development expenses are not met.<br />
Trade payables<br />
trade payables are non-interest bearing and are stated at their repayment value.<br />
Deferred taxes<br />
deferred taxes resulting from temporary differences of valuations entered in the statutory and tax balance sheets of the<br />
individual companies as well as from consolidation entries are calculated separately for each fiscal jurisdiction and shown<br />
as deferred tax assets or liabilities. Moreover, deferred tax assets may include claims for tax reductions as a consequence<br />
of the expected utilization of existing loss carryforwards in the following years if their realization is ensured with enough<br />
certainty. deferred taxes are calculated on the basis of tax rates applicable to the reversal in the respective fiscal jurisdictions<br />
which are valid or resolved at the balance sheet date. in addition, deferred taxes can be calculated on the basis of<br />
accounting transactions without any effect on income. deferred tax assets are only accounted for to the extent in which<br />
the realization of the associated benefit appears to be likely. if this criterion is not met, provisions are set up taking into<br />
account earnings in the past and expected business development in the foreseeable future.<br />
Assumptions and estimates<br />
in connection with the preparation of the consolidated financial statements it is partly necessary to make assumptions and<br />
estimates which affect the amounts and classification of assets and liabilities, income and expenses as well as contingent<br />
liabilities. actual values may differ from the assumptions and estimates in particular instances. adjustments will affect<br />
results at the time when better knowledge is available.<br />
Government grants<br />
Government grants in respect of tangible fixed assets are deferred and released over the expected useful life of the<br />
related asset.<br />
iii. notes to the balance sheet<br />
1. INTANGIBLE FIxED ASSETS<br />
intangible fixed assets are analyzed as follows:<br />
in kEur 31 December <strong>2007</strong> 31 December 2006<br />
Concessions, industrial and similar rights and assets 804 720<br />
Goodwill 24,725 22,201<br />
prepayments 0 114<br />
Total 25,529 23,036<br />
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