Key figures - Schulthess Group

1.6 Translation of foreign companies
The reporting currency is the Swiss Franc (CHF). Annual accounts of foreign subsidiaries are prepared in their local currency.
All balance sheet items (except shareholders’ equity) are translated into Swiss Francs (CHF) at the exchange rates applicable
at the balance sheet date. Differences arising on translation are taken directly to sharesholders’ equity without affecting net
profit.
Income statement items are translated into Swiss Francs (CHF) at the average exchange rates during the particular reporting
period. Exchange differences arising from operations are included in net profit.
The following rate was used for the translation of foreign currencies:
Balance sheet rates Income statement rates
Year-end-rates Average rates
1999 1998 1999 1998
100 ATS 11.55 11.50 11.63 11.71
2 Valuation principles
2.1 General
The annual accounts of the individual companies on which the consolidation was based were prepared using historical cost
values (except plant and property to estimated market values) according to uniform Group accounting principles. The
accounting principles remained unchanged as compared with the previous year.
2.2 Current assets
Inventories are valued at the most recent acquisition costs, the accumulated manufacturing costs, or at the lower market
value (lower of cost or market principle).
In the case of receivables, allowance is made for recognizable individual risks by valuation provisions.
2.3 Fixed assets
The valuation of property and plant is based on market values. Expert appraisals were commissioned to assess the market
values.
Equipment and vehicles are valued at acquisition or construction cost. Equipment and vehicles are depreciated on a straightline
basis over their expected useful lives from the month of acquisition onwards.
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