report

2.7 Net sales and revenue recognition
Net sales include all revenues from the sale of goods and commission business, less
discounts, sales tax and deductions including credit card commissions and other
price discounts. Earnings are recorded at the cash desk when the goods are handed
over to customers.
> Customer loyalty programme
Award credits granted in connection with the customer loyalty programme are
recognized as reductions in sales at the time granted. Discount vouchers that have
not yet been redeemed are shown on the balance sheet as liabilities.
2.8 Cost of goods
The cost of goods sold includes the purchase price less discounts for products sold
in the current period, transport costs, inventory differences, changes in value
adjustments on inventory and the cost of conditioning new goods. This item includes
no personnel costs.
2.9 Employee pension plans
Within the Charles Vögele Group there are various defined benefit and defined contribution
pension plans based on the regulations of the different countries concerned.
For defined benefit pension plans the coverage surplus or deficit recorded in the
balance sheet is equivalent to the present value of defined benefit obligations (DBO)
on the balance sheet date less the fair value of plan assets, adjusted for unrecorded
actuarial gains and losses and for unrecognized past service costs. The DBO is calcu-
lated at least every three years by an independent actuary using the projected unit
credit method. Actuarial gains and losses as well as alterations to asset limits are
booked to the income statement over the employees’ remaining average employment
period as long as they exceed 10 % of the value of plan assets or 10 % of benefitrelated
liabilities (the higher of the two values is decisive). If there is a surplus, the
future economic benefit of this surplus is assessed and if required capitalized and
value adjusted in further periods.
For defined contribution plans, the Group pays contributions to a public or private
pension insurance scheme either on the basis of a legal or contractual obligation,
or voluntarily. The Group has no further payment obligations beyond the payment of
these contributions. Contributions are recorded under personnel expenses when
they fall due.
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Financial Commentary | Income Statement and Balance Sheet | Cash Flow and Changes in Equity | Notes | Statutory Auditors