pdf (2.5 MB) - METRO Group

METRO GROUP : ANNUAL REPORT 2010 : BUSINESS
→ NOTES : NOTES TO ThE GROuP ACCOuNTING PRINCIPlES ANd METhOdS
business combination. In accordance with IAS 36 (Impairment
of Assets), a CGu is defined as the smallest identifiable
group of assets that generates cash inflows largely independently
from the cash inflows of other assets or groups
of assets. As a rule, single locations represent CGus at
METRO GROuP. Goodwill within METRO GROuP is monitored
at the level of the organisational unit sales division per
country for internal management purposes. Goodwill
impairment tests are therefore conducted at the level of this
respective group of cash-generating units.
Capitalised goodwill is tested for impairment regularly once
a year, or more frequently if changes in circumstances indicate
a possible impairment. If applicable, it will be written
down on an unscheduled basis. No write-back is performed
if the reasons for a non-scheduled write-down in previous
years have ceased to exist.
To determine a possible impairment, the recoverable
amount of a CGu is compared to the respective carrying
amount of the CGu. The recoverable amount is the higher of
value in use and fair value less selling expenses that is
determined as the present value of future cash flows. An
impairment of the goodwill allocated to a CGu applies only
if the recoverable amount is lower than the carrying amount.
Purchased other intangible assets are recognised at cost of
purchase. Internally generated intangible assets are capitalised
at cost of manufacture for their development if the
capitalisation criteria of IAS 38 (Intangible Assets) are met.
The cost of manufacture includes all expenditure directly
attributable to the manufacturing process. This may include
the following costs:
Direct costs direct material costs
direct production costs
Special direct production costs
Overhead
Material overhead
(directly attributable)
Production overhead
depreciation of fixed assets
development-related administrative costs
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debt capital costs are factored into the determination of the
cost of production only in the case of so-called qualified
assets pursuant to IAS 23 (Borrowing Costs). qualified
assets are defined as non-financial assets that take a substantial
period of time to prepare for their intended use or
sale. Research costs are not capitalised but recognised
immediately as expenses.
All other intangible assets have a limited useful life and are
therefore subject to scheduled straight-line write-downs.
Capitalised self-created and purchased software as well as
comparable intangible assets are written down over a
period of three to five years, licenses over their useful life.
These intangible assets are examined for indications of
impairment at each closing date. Non-scheduled amortisation
is effected if the recoverable amount is below the
amortised cost. The assets are written back if the reasons
for non-scheduled amortisation implemented in previous
years have ceased to exist.
Tangible assets
Tangible assets used in operations for a period of more than
one year are recognised at cost less scheduled depreciation.
The optional new measurement method under IAS 16
(Property, Plant and Equipment) is not applied. The manufacturing
cost of internally generated assets includes both
direct costs and appropriate portions of attributable overhead.
financing costs are only capitalised in relation to
qualified assets as a component of cost of purchase or production.
Investment allowances received are offset against
the purchase or manufacturing cost of the corresponding
asset. Reinstatement obligations are included in the cost at
the discounted settlement value. The capitalised reinstatement
costs are proportionately depreciated over the useful
life of the asset.