Annual Report 2002 - Agfa

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
If the purchase or production cost is higher than the net realizable value, inventories
are written down to net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
1. Significant accounting policies
continued
(n) Trade and other receivables
Trade and other receivables are stated at their cost less impairment losses.
At the inception of the lease, receivables under finance leases are stated at the present
value of the future net lease payments. The receivables are continually reduced
during the lease term by the portion of the lease payments that represents the
redemption of the principal.
(o) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits.
(p) Share capital
Repurchase of share capital
When share capital recognized as equity is repurchased, the amount of the
consideration paid, including directly attributable costs, is recognized as a
change in equity. Repurchased shares are classified as treasury shares and
presented as a deduction from total equity.
Dividends
Dividends are recognized as liabilities in the period in which they are declared.
(q) Interest-bearing borrowings
Interest-bearing borrowings are recognized initially at cost, less attributable transaction
costs. Subsequent to initial recognition, interest-bearing borrowings are stated at
amortized cost with any difference between cost and redemption value being
recognized in the income statement over the period of the borrowings on an effective
interest basis.
(r) Income taxes
Income tax on the profit or loss for the year comprises current and deferred tax.
Income tax is recognized in the income statement except to the extent that it relates
to items recognized directly to equity, in which case it is recognized in equity.
Agfa annual report 2002
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