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
Provisions
Pension obligations have been measured pursuant to IAS 19 using the projected unit credit method for defined benefit
pension plans. Given its immaterial significance, the interest portion of pension expenses has not been recognized as
an interest expense under net financial expenses.
Actuarial gains and losses are charged or credited to the measurement of pension provisions in the period in which they
arise. Asset values relating to plan assets are netted against the obligations.
Provisions have been recognized to cover those obligations to third parties resulting from past events which are likely to
lead to a future outflow of resources and for which the expected amount of the obligation can be estimated reliably.
Such obligations have been recognized as liabilities at their present values in cases where the outflow of resources is
expected to occur at a time later than the following year.
The calculation of other provisions accounts for both directly allocable costs and overhead costs.
Deferred taxes
Deferred taxes are calculated using the liability method (IAS 12). Deferred taxes have been recognized on the level of
the separate financial statements of the companies included in the Group for valuation differences between assets and
liabilities in the tax balance sheet and those in the IFRS financial statements, to the extent that such differences are
expected to be settled in later financial years (“temporary differences”).
Moreover, deferred taxes have also been accounted for on Group level in cases where such result from consolidation
entries.
Deferred tax assets and liabilities have been reported on a net basis in cases where they refer to the same taxable entity
and the same tax authority. Given that the balance sheet is structured in terms of maturities, deferred tax liabilities have
been recognized as non-current liabilities.
Liabilities
Liabilities have been recognized at amortized cost. Liabilities denominated in foreign currencies have been measured
using the mean exchange rate on the balance sheet date. Prepayments received have been recognized at face value.
STRATEC AG has made no use of the possibility of classifying financial liabilities upon initial recognition as financial
liabilities at fair value through profit or loss.
Recognition of sales
Sales and other operating income have been recognized upon the contractually agreed delivery being executed or the
service provided. Sales have been reported less cash discounts, price reductions, customer bonuses and rebates. Sales
deductions have been reported upon the respective sales being recognized.
In the case of order-related production, sales have been recognized using the percentage of completion method in accordance
with the degree of progress made.
Operating expenses
Operating expenses have been recognized in their respective periods at the time at which they are incurred or at which
the service is rendered.
Provisions for warranties have been recognized upon completion of the respective product or upon the respective service
having been rendered in full on the basis of historic values for such expenses.
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