Annual report 2012 - VDL

Valuation principles for the balance sheet
Intangible fixed assets
Intangible fixed assets relate to the costs of goodwill at the time of take-over. Goodwill is valued at the difference between the
acquisition price and the share in the net asset value of the acquired companies, less accumulated depreciation and extraordinary
capital reductions. The depreciation period is 10 years and starts from the commencement of the financial year in which the
goodwill costs originated. Negative goodwill is listed under statutory reserves.
Tangible fixed assets
Company land and buildings are valued at the current appraised value, being the value by private treaty with continued use,
with costs for the purchaser’s account, less depreciation and taking into account the expected lifespan of the assets in question.
A deferred tax liability of 15% is taken into account in the revaluation of buildings. The remaining tangible fixed assets are
valued at purchase price less depreciation, taking the expected useful life into account. The expected life per category is:
Company buildings:
20 - 33 years
Renovations and facilities:
5 - 20 years
Plant and machinery:
5 - 10 years
Other fixed operating assets:
5 - 7 years
Investments during the year under review are written off pro rata temporis.
Financial fixed assets
Shareholdings are valued at their share in the net asset value. The value of assets, liabilities and profit of shareholdings in which
the company has a controlling interest are determined in accordance with the principles applicable to these annual accounts.
Claims on group companies and minority interests and other financial fixed assets are valued at nominal value or market value, if
lower. Also included under financial fixed assets, due to the available forward offset of losses, is part of the deferred tax credit that
cannot be set off against deferred tax obligations. Expectations are that this deferred tax credit will not be settled in the near
future. For the applicable valuation principles, refer to the paragraph on “deferred tax credits and obligations”.
Stocks and work in hand
Stocks of raw materials and consumables are valued at fixed transfer prices based on the last known purchase price plus
various surcharges. If necessary, a provision for non-saleability is established. Work in hand (including semi-finished products
and development costs of new products) is valued on the basis of the overall cost price of the materials processed and hours
worked, less a provision for obsolete stock and expected losses. Invoiced instalments are deducted. Stocks of finished products
and commodities are valued at the cost price or fixed transfer price, based on the last known purchase price plus various
surcharges, minus the provision considered necessary for nonsaleability.
Accounts receivable
Receivables, including taxes, prepayments and accrued income, are valued at face value less a necessary provision for bad
debts. Included under receivables, due to the available forward offset of losses, is part of the deferred tax credit that cannot be
set off against deferred tax obligations. Expectations are that this deferred tax credit will be settled in the near future.
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