Financial Statements - Geberit

Transactions denominated in foreign currencies are recorded at the rate of
exchange prevailing at the dates of the transaction, or at a rate that approximates
the actual rate at the date of the transaction. At the end of the accounting
period, the unsettled balances in foreign currency receivables and
liabilities are valued at the rate of exchange prevailing at the consolidated
balance sheet date, with resulting exchange rate differences charged to income.
Exchange rate differences related to intra-group loans of a long-term
investment nature are recorded as a separate component of equity within
cumulative translation adjustments.
Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances with banks and
liquid short-term investments with maturities of three months or less on their
acquisition date.
Receivables
Trade and other receivables are carried at anticipated realisable value. An
estimate is made for doubtful receivables based on a review of all outstanding
amounts at year-end. Bad debts are written off during the year in which
they are identified.
Inventories
Inventories are stated at the lower of cost or net realisable value. Cost of
raw materials and goods purchased for resale are valued on a weighted average
basis. Provision is made for obsolete and slow-moving inventories.
Property, plant and equipment
Property, plant and equipment are carried at purchase or manufacturing cost
less accumulated depreciation. Betterments that increase the useful lives of
the assets, improve the quality of the output or enable a substantial reduction
in operating costs are capitalised and depreciated over the remaining
useful lives. Depreciation on property, plant and equipment is calculated
using the straight-line method based on the following useful lives: buildings
(20–50 years), production machinery and assembly lines (8–15 years), moulds
(8 years), equipment (5–20 years) and vehicles (4–8 years). Repairs and
maintenance are charged to income as incurred.
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