palfinger at a glance

noteS TO THE CONSolidated FINANCIAL StatementS
conSolidated FINANCIAL StatementS FOR THE Year ENDED 31 DECEMBER 2011
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(11) INCOME TAX
Tax receivables and tax liabilities are offset when they relate to the same tax authority and the company has a
right to offset the items.
According to the liability method, deferred tax is reported on temporary differences between the amounts recognized
under IFRS and those recognized in the tax balance sheet as well as on tax-loss carry forwards. Temporary
differences are reported whenever they give rise to deferred tax liabilities. Deferred tax assets are only recognized
if it is probable that the relevant tax benefits will actually be realized.
Deferred tax is calculated using the tax rate expected to apply at the balance sheet date when the temporary
differences reverse. As a rule, all changes in taxes result in tax expenses and/or income. Taxes on items reported in
other comprehensive income are reported in other comprehensive income. Taxes on items directly reported in
equity are directly recognized in equity.
(12) RECOGNITION OF REVENUE AND EXpenSES
Revenue arising from the provision of goods and services is recognized when all major risks and opportunities
arising from the delivered object have been transferred to the buyer. Revenue from the provision of services refers
to short-term services which are recognized when the service is rendered.
Operating expenses are recognized when the service is rendered or a delivery is received, or at the time the
expenses are incurred. Interest is recognized using the effective interest method. For information on contract
manufacturing see Note (5).
(13) CONSolidated Statement OF CASH FLOWS
The presentation of the statement of cash flows is based on the indirect method. The item funds corresponds to
cash and cash equivalents.
(14) ADJUStmentS WITH RETROspective EFFECT
PALFINGER AG holds its associated companies for the exclusive purpose of supporting and optimizing the Group’s
operating activities. One of the most important key performance indicators within PALFINGER AG is “EBIT plus income
from associated companies”. These circumstances have now been taken into account and the consolidated
income statement has been adjusted accordingly by eliminating the subtotal “Earnings before interest and taxes –
EBIT (before associated companies)” and instead inserting the subtotal “Earnings before interest and taxes – EBIT”
after the item “Income from associated companies”. The new structure has resulted in a clearer and more reliable
presentation of the earnings situation of PALFINGER AG.
As at 31 December 2010, puttable non-controlling interests have been reported under non-controlling interests.
The right of termination constitutes an obligation and thus a liability according to IAS 32. Therefore, these interests
are now shown as liabilities from puttable non-controlling interests. The residual value between the fair value of
the liabilities and the share in net assets of the non-controlling shareholder is presented under retained earnings.
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palfinger Annual Report 2011