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POLYTEC 2012 Notes
4. ASSets from tenancies and leASIng
Leased assets for which basically all risks and chances resulting
from the property of assets were transferred (finance lease), are
valued as assets with their market value or the lower cash value
in correspondence with IAS 17. The amortization is performed
according to schedule over the period of the leasing agreement
or over the economic useful life of the assets provided that
the transfer of legal ownership of the leased assets is secure
enough until the end of the leasing agreement period. The payment
obligations resulting from the future leasing rates are discounted
and recorded as liabilities.
5. Government grants
Government grants and subventions of other third parties are
recorded under liabilities and liquidated in accordance with the
useful life of the allocated asset.
6. FinancIAl assets
Other investments and loans are included under other financial
assets. They are valued at the costs of acquisition or the lower
market value at the balance sheet date. Interest-bearing loans
are balanced with their nominal value.
The investments balanced at the acquisition costs are investments,
which are not listed on an active market and whose current
value can, therefore, not be determined on a reliable basis.
Extraordinary amortizations will be performed for all financial
assets in the case of impairment.
7. Inventories
Inventories are evaluated at their acquisition costs or production
costs or the lower achievable market value on the balance
sheet date. The determination of the acquisition and production
costs is performed for similar assets in accordance with the
weighted average cost method or in accordance with similar
methods. The production costs only include the directly attributable
costs and the proportionate overhead costs. Interests
on borrowed capital are not capitalized, as no substantial borrowing
costs were incurred that are directly attributable to the
acquisition, construction or production of a qualifying asset.
8. Accounts receivABle for trADe, income tax
and other accounts receivABle
Receivable are capitalized at costs of acquisition. Recognizable
risks are taken into account by performing appropriate value
adjustments.
In other accounts receivable also those derivative financial
assets are reported that show a positive market value and are
classified as “held for trading”.
9. Cash and short-term financIAl resources
Cash and other short-term financial means consist of cash on
hand, checks and cash at banks as well as securities, which are
used by the Group for liquidity management. They are evaluated
at market values, which are formed on sufficiently solvent markets
and which can thus be reliably determined.
10. ImpAIrment
Assets are tested at the balance sheet date if any indications
exist for impairment. For goodwill, such annual verification
(impairment test) is performed shortly before any balance sheet
date even if no indications for impairment are given.
For the purpose of the impairment test, the POLYTEC GROUP
summarizes its assets, which are generating cash flow on the
lowest level (cash-generating unit). Goodwill is assigned to those
cash-generating units which are expected to benefit from synergies
and which represent the lowest group-internal level of the
management monitoring of the cash flow.
The value in use of the asset corresponds to the present value
of the estimated future cash flows from continuing use of such
asset and from its disposal at the end of its useful life applying
a fair market discount rate before taxes, which is adjusted to
the specific risks of the assets. The estimation of the future cash
flow is based on a 3 year planning horizon. A perpetual annuity
based on the third year’s estimates has been assumed for the
period beyond this planning horizon. The interest rate used for
calculating the present value is the weighted average capital
costs of the corresponding cash-generating unit and was defined
with 11.4% for the 2012 financial year (previous year: 10.2%).
Any impairment loss will be disclosed with the amount by which
the book value of the individual asset or the cash-generating
unit exceeds the achievable amount. The achievable amount is
the higher amount of both amounts from the net selling price
and the use value. Impairment losses recognized with regard
to cash-generating units to which goodwill has been allocated
are first applied against the carrying amount of goodwill. Any
remaining impairment loss reduces the carrying amounts of the
assets of the cash-generating unit on a pro-rata basis.
In the case of a discontinuation of the reasons for impairment,
corresponding revaluations will be performed for fixed assets.
Goodwill, which has been amortized due to impairment, is no
longer written up.
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