Daimler Annual Report 2011 - Alle jaarverslagen

Tax benefits resulting from uncertain income tax positions
are recognized at the best estimate of the tax amount expected
to be paid.
Earnings per share. Basic earnings per share are calculated
by dividing profit attributable to shareholders of Daimler AG by
the weighted average number of shares outstanding. Diluted
earnings per share additionally reflect the potential dilution that
would occur if all stock option plans were exercised.
Goodwill. For acquisitions, goodwill represents the excess
of the consideration transferred over the fair values assigned
to the separately identifiable assets acquired and liabilities
assumed. Goodwill is accounted for at the subsidiaries in the
functional currency of those subsidiaries.
In connection with obtaining control, non-controlling interest
in the acquiree is principally recognized at the proportionate
share of the acquiree’s identifiable assets, which are measured
at fair value.
7.08
Useful lives of property, plant and equipment
Buildings and site improvements
Technical equipment and machinery
Other equipment, factory and office equipment
10 to 50 years
6 to 25 years
2 to 30 years
Other intangible assets. Intangible assets acquired are
measured at cost less accumulated amortization.
If necessary, accumulated impairment losses are recognized.
Intangible assets with indefinite lives are reviewed annually
to determine whether indefinite-life assessment continues
to be appropriate. If not, the change in the useful-life assessment
from indefinite to finite is made on a prospective basis.
Intangible assets other than development costs with finite
useful lives are generally amortized on a straight-line basis over
their useful lives (3 to 10 years) and are tested for impairment
whenever there is an indication that the intangible asset may be
impaired. The amortization period for intangible assets with
finite useful lives is reviewed at least at each year-end. Changes
in expected useful lives are treated as changes in accounting
estimates. The amortization expense on intangible assets with
finite useful lives is recorded in functional costs.
Development costs for vehicles and components are recognized
if the conditions for capitalization according to IAS 38 are
met. Subsequent to initial recognition, the asset is carried at
cost less accumulated amortization and accumulated impairment
losses. Capitalized development costs include all direct
costs and allocable overheads and are amortized on a straightline
basis over the expected product life cycle (2 to 10 years).
Amortization of capitalized development costs is an element
of the manufacturing costs and is allocated to those vehicles
and components by which they were generated and is included
in cost of sales when the inventory (vehicles) is sold.
Property, plant and equipment. Property, plant and equipment
are measured at acquisition or manufacturing costs
less accumulated depreciation. If necessary, accumulated
impairment losses are recognized.
The costs of internally produced equipment and facilities
include all direct costs and allocable overheads. Acquisition
or manufacturing costs include the estimated costs, if any,
of dismantling and removing the item and restoring the site.
Plant and equipment under finance leases are stated at
the lower of present value of minimum lease payments or fair
value less the respective accumulated depreciation and
any accumulated impairment losses. Depreciation expense
is recognized using the straight-line method. The residual
value of the asset is considered. Property, plant and equipment
are depreciated over the useful lives as shown in table 7.08.
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