Every day counts - Deutsche Beteiligungs AG

D. Accounting policies
Deutsche Beteiligungs AG · Annual Report 2002/2003
Notes to the Consolidated Financial Statements 2002/2003
Fixed assets are valued at purchase cost, less regular depreciation (straight-line method).
Depreciation is based on normal useful life.
Assets of a minor value are written off in the year of acquisition. Minor-value assets
are treated as disposed in the assets account of the acquisition year.
Additions to movable fixed assets during the first half of the year are depreciated at
the full annual rate; additions during the second half of the year are written off at half
the annual rate.
Financial investments are generally valued at acquisition cost. Long-lasting reduction
in the value of an investment is accounted for by non-scheduled depreciation.
Receivables and other assets are principally carried at face value. Recognizable risks
have been accounted for by value adjustments.
Marketable securities are valued at the lower of cost, market or professional valuation.
Provisions covering all recognizable risks and contingent liabilities are calculated at
their probable realistic value at the balance sheet date.
Pension obligations were determined on the basis of the accrued benefit valuation
method, which is applied for disclosures in conformity with the “International Accounting
Standards” (IAS). The discount rate is 5.5 percent p.a. Factors influencing valuation
are average staff turnover and future salary and benefit increases. These were accounted
for at an assumed trend rate of 2.5 percent p.a.
Liabilities are carried at their repayment amount.
Financial investments in foreign currency are principally translated at the exchange
rate at the time of purchase; receivables and accounts payable denominated in foreign
currency are translated at the lower of currency rate at the purchasing date, balance
sheet date or repayment date. Foreign currency items in the profit and loss account are
translated at the exchange rate on the date of payment or receipt of payment.
Trust assets consist of receivables valued at purchase cost. These are matched against
liabilities in the same amount.
Long-term assets
Current assets
Provisions
Liabilities
Currency translation
Trust assets
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