Drucken GB - MME moviement

Treasury shares
Pursuant to Section 272 para. 4 of the HGB and Section 266 of the HGB, treasury stock
must be shown in the operating assets as an asset under commercial law. The asset
items in the commercial balance sheet are neutralised as liabilities by means of a
reserve for treasury stock. By contrast, IAS 32.16 requires that it be shown as balanced.
SIC 16.10 permits three options for the form of the balancing:
• Accounting for the entire acquisition cost of treasury stock as a single deduction
item in the shareholders' equity,
• Deduction of the par value of treasury stock from the subscribed capital and
of the acquisition cost in excess from capital reserves,
• Distribution of acquisition costs over each category of equity, i.e. not only in
the par value and capital reserves but also the profit reserves, for example.
MME chose the second alternative.
Immediate write-off of low-value items
HGB specifies that low-value items costing less than EUR 410 can be written off
immediately in the year of purchase. IFRS only permits a write-off over the item’s
useful life. Low-value items are written off over three years according to IFRS.
Hamburg, 18 March 2005
MME Me, Myself & Eye Entertainment AG
Martin Hoffmann Dr. Christian
Franckenstein
Gisela Marx Christoph Post
NON-BINDING TRANSLATION
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