Download Annual Report 2003 - Mühlbauer Group

NOTES
SALES RECOGNITION
Sales are indicated less customer premium and rebates,
upon delivery of goods or performance of service. A delivery
is deemed fulfilled when risks and opportunities
connected with the goods have been transferred to the
purchaser. Commission expenses are listed as sales
and distribution costs.
PRODUCT-RELATED COSTS
Expenditures for product marketing and advertising and
for other sales-related activities are recorded as expenses
as they occur. Accruals for guarantee are formed beginning
at the time the sales are realized. Research and
development costs are posted as expenses at the full
cost as they occur.
EARNINGS PER SHARE
In calculating the earnings per share, all effects from
rights of conversion into stockholder's equity are included,
in accordance with SFAS No. 128 "Earnings per
Share". When this dilution is applied, two categories are
to be indicated for earnings per share. For the category
"basic earnings per share", diluted shares are not taken
into account; the consolidated earnings are divided by
the weighted average of the issued shares. The category
"diluted earnings per share", in addition to the weighted
average of shares issued, also takes into account diluted
shares, which arise as a result of convertible bonds.
The conversion of the weighted average of shares issued for calculation of the "Basic Earnings per Share" to the
weighted average of the shares issued for calculation of the "Diluted Earnings per Share" is calculated as follows:
20032002
Quantity Quantity
Weighted average of shares for calculation of the "Basic Earnings per Share" 6,099,342 6,206,620
Dilutive effect of stock options and convertible bonds 0 816
Weighted average of shares for calculation of
the "Diluted Earnings per Share" 6,099,342 6.275,246
CASH AND CASH EQUIVALENTS
Cash and cash equivalents refer to current credit balances
at financial institutions, cash assets and capital that
can be liquidized on short notice (original maturity of
three months or less).
TRADE RECEIVABLES
Customer liabilities with maturity period of up to one year
are booked at the nominal amount, customer liabilities
with maturity period of over one year are booked as interest
paid value. Discernible risks are allowed for appropriate
revaluations.
INVENTORIES
Inventories are assessed either at the cost of acquisition
and manufacture or at the lower market value. Raw materials,
auxiliary and operational materials are assessed
primarily at the floating average price. Non-sellable and
reduced-value inventory is assessed according to the lower-of-cost-or-market
principle. Finished and unfinished
products, including order-related development tasks,
are assessed according to the principle of unit valuation.
Direct material production unit costs and proportional
material and production overhead costs are carried as
assets under standard utilization.
SECURITIES
Negotiable securities are assessed by "specific identification"
in accordance with SFAS No. 115 "Accounting for
Buildings
Technical equipment
Other equipment, fixtures and office equipment
Certain Investments in Debt and Equity Securities" at the
stock exchange or market price on the closing date.
Unrealized gains and losses are posted as affecting the
operating result for "trading" securities that were acquired
for ready sale. Unrealized gains and losses for securities
that are neither intended as a permanent component
of the company’s assets nor for reselling ("available-for-sale"
securities) are not posted as affecting the
operating result; but are indicated as changes in equity
capital which did not result from transactions with shareholders
("Other Comprehensive Income“) and with due
consideration to latent taxes.
Securities intended as a permanent component of the
company’s assets are posted with its continuative
purchase costs (“held-to-maturity“). In case of availablefor-sale
and held-to-maturity securities are expected to
permanently decrease in value, the negative difference is
posted as affecting the operating result.
The company decides at the time on which securities are
purchased, which category they are to be placed into,
and checks up this classification on every date of balance.
FIXED ASSETS
Fixed assets are assessed at the purchase or manufacturing
cost less cumulative depreciations. The schedule
depreciations are linear, over a normal serviceable life
based on categories, as follows:
10 - 33 years
5 - 10 years
3 - 10 years
40