Deutsche Bahn 2010 Annual Report - Deutsche Bahn AG

168
| DEUTSCHE BAHN GROUP
Asset impairment test
Processes which comply with the specific requirements of
IAS 36 have been implemented in order to carry out the asset
impairment test. The service lives of the individual CGUs used
for the asset impairment test are based on the service life of the
asset or a group of homogenous assets which is (are) most
significant for the particular CGU.
In addition, the process of establishing the service life
disregards future cash flows which result from major structural
changes, disinvestment measures or extension investments.
Resulting adjustments to the original plans relate mainly to the
major new and expansion infrastructure projects, where it is
assumed that the construction process will not be completed
in the medium-term, but beyond 2015.
The cash flow forecasts take account of internal transfer
prices within DB Group on the basis of arm’s length assessments
of the companies involved. The published infrastructure prices
are applicable for products and services exchanged between
transport and infrastructure segments; price increases in the
period covered by the planning period have also been taken into
consideration.
After the medium-term planning has been completed, a
regular check is carried out to determine whether impairments
are necessary at the CGU level. In addition to this annual cycle,
a test is also performed if current issues arising from the development
in business or changes in assumptions indicate that
there has been a major deterioration in the value in use.
The voluntary impairment tests carried out in the period
under review did not identify any impairment requirement for
any CGU. The voluntary asset impairment test carried out in
December 2010 after the medium-term planning was adopted
also did not identify any impairment requirement for any CGU.
Goodwill impairment test
A goodwill impairment test must be carried out annually for all
CGUs or groups of CGUs to which goodwill can be allocated.
Because the goodwill which arises in DB Group as a result of
acquisitions can always be clearly allocated to a CGU, this goodwill
impairment test is an integral part of the asset impairment
test which is always carried out annually on a voluntary basis
for all CGUs.
The goodwill impairment tests carried out for the CGUs did not
identify any impairment requirement. The respective recoverable
amount is represented by the value in use of the CGU (with the
exception of the CGU DB Arriva), which in turn has been derived
from the medium-term planning of the two segments. The details
relating to methods presented above are thus applicable correspondingly.
At DB Schenker Logistics and DB Schenker Rail,
it also has to be borne in mind that separate assumptions relating
to the development of the economy, market and competition
as well as currency relations have been made for the relevant
international markets. These assumptions have been based on
the external and internal expert assessments available at the
time of the planning.
E) SHARES IN COMPANIES ACCOUNTED FOR
USING THE EQUITY METHOD
Shares in associated companies and joint ventures are accounted
for using the equity method in accordance with IAS 28 (Shares
in Associated Companies) or in accordance with the option
specified in IAS 31 (Shares in Joint Ventures). Based on the Group
costs of purchase at the time of the purchase, the figure for the
change in shareholders’ equity at the company accounted for
using the equity method attributable to the shares of DB Group
is extrapolated.
F) FINANCIAL ASSETS
Arm’s length purchases or sales of financial assets are recognized
or eliminated on the settlement date. At present, there are the
following categories in DB Group in accordance with IAS 39:
Available-for-sale financial assets
Available-for-sale financial assets are normally recognized with
their fair value. If the fair value of equity instruments is not
reliably measurable, the available-for-sale financial assets are
recognized at cost of purchase less any impairment.
Shares in non-consolidated subsidiaries and other equity
investments are also considered to be available-for-sale financial
assets. They are normally shown with their amortized cost of
purchase because the future cash flows for determining the
market value of the shares cannot be reliably established.
Available-for-sale long- or short-term securities are recognized
with their market values as of the reporting date – where
such values exist. Changes in fair value are recognized with no
impact on the income statement in the reserve attributable to
the marking-to-market of securities.