THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

The sales tax amount that is recoverable from or payable to the
tax authorities is included in the balance sheet under other current
receivables or other current liabilities.
Earnings per Share
The Group reports basic undiluted and diluted earnings per share
for its ordinary shares. In determining the undiluted earnings per
share, the profit or loss attributable to the ordinary shareholders
of the parent company is divided by the weighted average number
of ordinary shares outstanding during the year.
The diluted earnings are calculated by adjusting the profit or loss
attributable to the ordinary shareholders of the parent company
and the weighted average number of ordinary shares for the effects
of all potentially dilutive ordinary shares, including convertible
notes and share options granted to employees.
Segment Reporting
A segment is a distinguishable component of the Group in which
either related products and services are offered (business segment)
or in which products and services are offered within a particular
market environment (geographical segment) and for which
the risks and opportunities are distinguishable from those of other
segments. Segment information is summarized according to business
segments and geographical segments in which the Group is
involved. The business segments are determined based on the
Group’s reporting and administration structures.
Segment results, assets and liabilities include both items that are
directly attributable to the segment as well as items that can be allocated
to the segment on a reasonable and consistent basis. Segment
capital expenditure investment comprises all expenditure
incurred during the reporting period to acquire property, plant and
equipment and intangible assets.
Assets Held for Sale
Assets held for sale comprise undeveloped real estate that has
been classified as held for sale in accordance with IFRS 5. In the
previous year, the classification mainly included production sites.
The fair values of these assets were determined based on market
values and expert appraisals. Liabilities relating to the disposal
groups were not identified.
Property, Plant and Equipment
Recognition and measurement
Property, plant and equipment are stated at cost less accumulated
scheduled depreciation and impairment losses. If individual components
of assets have differing useful lives, then these are treated
Annual Report 2008 Symrise AG 107
as separate items (major components) within property, plant and
equipment.
Gains and losses deriving from disposals of property, plant and
equipment are determined by comparing the proceeds of disposal
and the carrying amounts of the items of property, plant and equipment
and the differences are recognized net within “other operating
income” in the income statement.
Depreciation
Depreciation is charged in the income statement on a straight-line
basis over the expected useful life of the item of property, plant or
equipment. Leased assets are depreciated over the shorter term
of the contractual term of the lease and the useful life of the item
unless it is reasonably certain that the Group will become the
owner of the leased asset at the end of the lease period. Land is
not depreciated. The estimated useful lives for the current and
comparative reporting periods are as follows:
Buildings
Plant and machinery
Equipment
20 to 50 years
2 to 20 years
3 to 20 years
The carrying amounts attributable to items of property, plant and
equipment are reviewed for impairment if events or changes in circumstances
indicate that the carrying amount is not recoverable.
The carrying amounts, useful lives and depreciation methods for
items of property, plant and equipment are reviewed each year
and adjusted if appropriate.
Costs relating to the general overhaul of assets are considered as
part of the carrying amount of the asset if the recognition criteria
are satisfied.
Notes