Annual Report 2007 - Muehlhan AG

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pursuant to ifrS 3, goodwill has not been regularly amortized since 1 January 2005. an impairment test was made in
accordance with iaS 36 in the past financial year by applying the discounted cash flow method based on the respective
business planning data. No write-down was necessary in the financial year 2007.
the impairment test was based on the following assumptions:
an interest rate of 7% was used as a basic discount factor. it corresponds to the interest rate payable with respect to the
loan issued by us plus a markup of some 1% to cover the general risk. the discount factor is increased by 2% to reflect
the risk of changing cash flows resulting from fluctuating exchange rates. the discount factor is also increased by 2% to
take into consideration the low level of planning certainty at newly established or acquired companies and companies in
the process of restructuring.
the development of intangible fixed assets for the financial years 2007 and 2006 is shown in the fixed assets movements
schedule included in the Group consolidated financial statements.
2. PROPERTY, PLANT AND EQUIPMENT
property, plant and equipment is analyzed as:
in kEur 31 December 2007 31 December 2006
land, land rights and buildings including buildings on third-party land 6,957 5,955
technical equipment and machinery 19,433 14,953
other equipment, operating and office equipment 3,276 2,584
prepayments and assets under construction 115 63
Total 29,781 23,555
Net book values of tangible fixed assets are deduced from their purchase costs. accumulated depreciation on tangible
fixed assets amounted to Eur 42.8 million (previous year: Eur 39.7 million).
tangible fixed assets include leased assets in the amount of Eur 0.1 million (previous year: Eur 0.2 million). they pertain
to operating and office equipment at a subsidiary.
Capital expenditures amounted to Eur 12.5 million in 2007. they mainly refer to capital spending on replacements. the
acquisition of tangible assets through the initial consolidation of newly acquired companies entailed Eur 2.6 million of
purchase and production costs and Eur 1.3 million of residual book values.
the development of property, plant and equipment for the financial years 2007 and 2006 is shown in the fixed assets
movements schedule included in the Group consolidated financial statements.