Annual Report 2010 - Knorr-Bremse AG.

148
6
Inventories
2010 TEUR 2009 TEUR
Materials and supplies 184,402 132,980
Work in process 60,164 43,021
Finished products, merchandise 195,916 161,290
less advances received on orders (221,145) (204,306)
Total 219,337 132,985
7
Receivables and other asset
2010 TEUR 2010 TEUR 2009 TEUR
Remaining term
more than 1 year
Accounts receivable, trade 8,425 689,066 493,974
Other assets 7,660 92,133 96,748
in total
in total
Total 16,085 781,199 590,722
8
Cash and cash equivalents
This item includes cash at bank, checks and cash on hand.
9
Prepaid expenses
Group prepaid expenses amounted to TEUR 12,182. In the previous year (TEUR 80,765) this heading
comprised primarily deferred tax assets and liabilities.
Following implementation of the German Accounting Law Modernization Act, the deferred taxes reported
in this item in 2009 now appear under Deferred taxes. In accordance with Article 67 (8) clause 2
subclause 1 of the Act Introducing the German Commercial Code (EGHGB), values for the previous year
have not been adjusted.
10
Deferred taxes
At the balance sheet date deferred tax assets amounted to TEUR 68,713 (2009: TEUR 70,382), while deferred
tax liabilities totaled TEUR 1,636 (2009: TEUR 0). In compliance with the legal requirements, deferred
tax assets and liabilities are stated at the netted amount. Of the deferred tax assets, TEUR 39,169
(2009: TEUR 46,137) relate to deferred taxes on individual balance sheets of group companies and TEUR
29,544 (2009: TEUR 24,245) relate to consolidation entries affecting net income. Deferred tax
assets on individual balance sheets result primarily from temporary differences in accrued liabilities,
receivables and other assets. Deferred tax assets relating to consolidation adjustments are primarily the
result of eliminating unrealized intercompany profits. Deferred tax liabilities relate solely to deferred
taxes on individual balance sheets of group companies. At individual company level and at Group level,
deferred taxes are stated at the projected tax rate in the respective countries at the time of realization.
Tax rates range from 0% to 40%, while the rate on consolidation activities is ca. 35%.