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Customized Construction Contracts
According to IAS 11, the sales volume and results of every contract are determined using the percentage-of-completion
method. The percentage of completion is calculated from the ratio of the contract
costs so far incurred to the estimated total costs as of the respective cut-off date. Contract costs which
are incurred immediately are recognized immediately through profit and loss. If the result of a construction
contract cannot be determined reliably, only revenues in the amount of the contract costs
incurred are recognized.
Payments received on account are deducted directly from the receivables from production contracts
reported under trade receivables. If the payments received on account for individual production
contracts exceed the receivables from production contracts, the excess amount is reported under
liabilities. If it seems likely that total contract costs will exceed total contract revenues, the anticipated
loss is recognized immediately as an expense and, if it exceeds the contract costs already incurred,
reported as a liability from contract production.
Non-current Assets Held for Sale
Non-current assets (or groups of assets and liabilities) are classified as held for sale and are valued at
the carrying amount or lower fair value less costs to sell, if their carrying amount will essentially be
generated by a sale rather than through continued operational use.
Pension Provisions
The provisions for pension obligations are formed as a result of benefit plans for retirement and invalidity
pensions and provisions for surviving dependents. These provisions are formed exclusively for
defined benefit plans under which the company guarantees that employees will receive a specific level
of benefits. The provisions for similar obligations take account of bridging payments in the event of
death.
The pension obligations are valued on the basis of actuarial assumptions and calculations. The defined
benefit obligations are determined using the internationally accepted projected unit credit method.
The projected unit credit method takes into account not only pensions and acquired claims that are
known on the reporting date, but also the increases in salaries and pensions that may be expected
in the future. The current service costs are shown as personnel expenses, the interest component of
allocations to provisions as net interest income.
Actuarial gains and losses are recorded in full in the pension provisions.