Note 1 - Beerenberg

Note 3 | Accounting principles
Intangible assets are amortised on a straight-line basis over
their estimated useful life from the time they are available
for use, since this most closely reflects the consumption of
the future economic benefits embodied in the asset. The estimated
useful lives for the current period and comparative
periods are as follows:
▪▪
Customer relationships 10 years
▪▪
Technology 10 years
Amortisation method, useful life and residual value are
reviewed annually and adjusted if necessary.
Impairment losses
When the carrying amount of a non-current asset is higher
than the estimated recoverable amount, the value is written
down to the recoverable amount. The recoverable amount is
the greatest of fair value less cost to sell and its value in use.
The scope for reversing any previous write-downs (except
goodwill) is assessed on each reporting date.
With the exception of inventories (see Inventories) and
deferred tax assets (see Income tax), the carrying amount of
the Group’s fixed assets is continually assessed to determine
whether there is any indication of impairment. If any such
indication exists, the asset’s recoverable amount is estimated
(see Calculating the recoverable amount).
Goodwill and intangible assets with indefinite useful lives
are tested for impairment annually.
An impairment loss is recognised when the carrying amount
of an asset or cash-generating unit exceeds the recoverable
amount. Impairment losses are recognised through profit or
loss.
Impairments estimated for cash-generating units are allocated
so that the carrying amount of any goodwill in the
cash-generating units is reduced first. Next, the remaining
impairment losses on the other assets in the unit are allocated
pro rata based on the carrying amount.
If an impairment in the fair value of a financial asset available
for sale has been taken directly to other income and
expenses, and if there is objective evidence that the asset has
been the subject of an impairment, the accumulated loss that
has been recognised directly in other income and expenses
in profit or loss will be recognised. This applies even if the
financial asset has not been realised. The loss recognised in
profit or loss is the difference between the acquisition cost
at the time of acquisition and the current fair value, less any
impairment of the financial asset previously recognised in
profit or loss.
Calculating the recoverable amount
The recoverable amount of an asset is the greater of the net
selling price (less cost to sell) and value in use. The value in use
is estimated by discounting expected future cash flows to their
present value using a market-based risk-adjusted discount rate.
For assets that do not generally generate independent cash
flows, the recoverable amount is determined for the smallest
cash-generating unit to which the asset belongs.
Reversing impairment losses
Impairment losses on goodwill are not reversed. In respect
of other assets, impairment losses are reversed if there is any
change to the estimates used to calculate the recoverable
amount.
Lease agreements (as a lessee)
Leases under which the Group assumes substantially all
the risks and rewards of ownership are classed as financial
leases. Upon initial recognition the asset is measured at an
amount equal to the lower of its fair value and the present
value of the minimum lease payments. Subsequent to initial
recognition, the asset is subject to the same accounting principle
as equivalent assets.
Other leases are operating leases and are not recognised in
the Group’s statement of financial position.
Inventories
Inventories are measured at an amount equal to the lower of
acquisition cost and net realisable value. The net realisable
value is the estimated selling price in the ordinary course
of business less the estimated cost of completion and selling
expenses. The acquisition cost of manufactured inventories
includes the direct cost of materials, direct labour and a
share of indirect production overheads, while the acquisition
cost of purchased inventories is the cost price based on the
first-in-first-out principle and includes the cost incurred in
acquiring the inventories, production or conversion overheads
and other costs incurred in bringing them to their existing
location and condition. In accordance with IAS 2.28,
the value of inventories is written down to the net realisable
value if the inventories have been damaged or have become
wholly or partially obsolete or if the selling price has fallen.
Cost of sales for the year comprises the cost price of goods
sold plus any write-down in accordance with IAS 2.28 at the
end of the year.
Pension costs and pension obligations
Pension costs and pension obligations are treated in accordance
with IAS 19. Pensions are described in Note 20. The net
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Beerenberg CORP. AS Group group accounts 2012