annual Report 2009 - STRATEC Biomedical AG

Report of the board of Management
Report of the supervisory board
THE share
Corporate Governance
Group Management report
Consolidated financial statements
Service
3. Basic principles
The consolidated financial statements have been prepared on the assumption that the company constitutes a going
concern. Up to the conclusion of the preparation of these consolidated financial statements there were no further events
with any significant influence on the net asset, financial and earnings position of the Group.
The financial statements have in principle been prepared based on historic cost, except for derivative financial instruments,
securities available for sale, and securities held for trading, which have been measured at fair value.
The annual financial statements of the companies included have been based on uniform accounting and valuation principles.
The separate financial statements of the companies included have been prepared as of the same balance sheet
date as the consolidated financial statements.
The statement of comprehensive income has been prepared using the total cost method.
In the interests of clarity, individual items have been summarized in the statement of comprehensive income and the
balance sheet. These are explained in the notes to the financial statements. Pursuant to IAS 1 (Presentation of Financial
Statements), a distinction has been made in the balance sheet between non-current and current items. All assets and
liabilities with maturities within the next twelve months are classified as current. Assets and liabilities earmarked for
realization in the company’s usual course of business are also classified as current, even when their maturities exceed
twelve months. In the case of loan liabilities, a distinction has been made between the repayment installments due for
payment within the next twelve months (current financial liabilities) and the long-term portions (non-current financial
liabilities).
Assumptions and estimates
The preparation of the consolidated financial statements requires a certain number of estimates and forward-looking
assumptions to be made which have implications for the volume and method of statement for the assets, liabilities,
expenses, income and contingent liabilities thereby recognized.
Specifically, assumptions and estimates are required for the assessment of the criteria governing capitalization of intangible
assets pursuant to IAS 38, the establishment of uniform useful lives for non-current assets at the Group, the fairvalue
measurement of the stock options granted, the determination of the costs still to be incurred and percentage of
completion for construction contracts, the period of amortization for capitalized customer-specific development services,
the measurement of provisions, and the recognition of deferred taxes on tax loss carryovers.
Moreover, estimates are also required in the context of company acquisitions when determining the fair values of the
assets, liabilities and contingent liabilities thereby acquired, as well as of contingent purchase price components (earnout
components).
In particular, the identification and measurement of intangible assets offers substantial discretionary scope. Fair values
are determined on the basis of forecast future cash flows. Depending on the type of asset and the information available,
application is made of valuation methods based on cost, market prices or capitalized values.
Values based on assumptions and estimates may deviate from actual values. The assumptions and estimates are reviewed
on an ongoing basis, with resultant amendments being recognized through profit or loss upon more accurate information
becoming available.
stratec Annual Report 2009
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