Annual REPORT

Financial assets at fair value through profit or loss
This category includes derivative financial instruments that are not designated to
hedge accounting. Any changes in value are recognized in the income statement.
> Loans and receivables
Loans and receivables are non-derivative financial assets with determinable pay-
ments that are not quoted on an active market. They are shown under current
assets provided their maturity is not more than twelve months after the balance
sheet date. Otherwise they are shown as long-term assets. In the Group balance
sheet, the position “Receivables, advance payments and prepaid expenses” (see
Note 18) is recorded under this category. Loans and receivables are recognized
at amortized cost.
> Financial assets held to maturity
Held-to-maturity financial assets are non-derivative financial assets with fixed or
determinable payments and fixed maturities that Charles Vögele Group has the
positive intention and ability to hold to maturity. Charles Vögele Group did not hold
any assets in this category in the 2009 and 2008 financial years.
> Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that have
been assigned to this category or that have not been assigned to any of the other
categories. They are carried as long-term assets unless there is a plan to sell
them within twelve months of the balance sheet date. The investments shown for
2009 and 2008 are recorded under this category (see Note 22).
2.18 Intangible assets
> Goodwill
Goodwill represents the excess of the cost of an acquisition of a company or of
business activities in the form of net assets over the fair value of the Group’s share
of the net identifiable assets of the acquired company or business activities at
the date of acquisition. Goodwill is tested annually for impairment (see Note 2.19).
> Other intangible assets
Other intangible assets include IT software, trademarks and licenses. They are
capitalized if the company derives a future economic benefit from them, and if their
historical purchase costs can be valued reliably.
Other intangible assets have a defined useful life and are carried at cost less accu-
mulated depreciation and any impairments (see Note 2.19). IT software is depreciated
using the straight-line method over five years; licenses and trademarks are
depreciated over their estimated useful life.
19
Financial Commentary
Income Statement and Balance Sheet
Cash Flow and Changes in equity
Notes
Statutory Auditors