Financial Statements - Geberit

Geberit Group
Intangible assets and goodwill
The excess of the purchase price over the fair value of net assets acquired is
recorded as goodwill. Goodwill and intangibles such as patents, know-how,
trademarks and software acquired from third parties are stated at cost less
accumulated amortisation. The amortisation of goodwill and intangible assets
is calculated using the straight-line method based upon the following useful
lives: goodwill (5–20 years), patents (3 years), trademarks (20 years), knowhow
(3 years) and software (4 years).
Valuation of property, plant and equipment and intangible assets
Where the carrying amount of an asset is greater than its estimated recoverable
amount, it is written down to its recoverable amount.
Deferred financing fees
Financing fees, including net premiums paid on hedge agreements, are deferred
and amortised over the expected life of the related debt instrument, on
a straight-line basis, or if the debt instrument has scheduled principal repayments,
using the bond outstanding method.
The amortisation of deferred financing fees is included in financial income
and expenses.
Associated companies and joint ventures
The Group’s share of profits and losses of associated companies (generally
voting rights between 20% and 50%) and joint ventures is included in the
consolidated income statements in accordance with the equity method of
accounting. All other investments are stated at cost, with adequate provision
for diminution in value of a permanent nature.
Provisions
The Group recognises provisions when it has a present legal or constructive
obligation to transfer economic benefits as a result of past events and a
reasonable estimate of the obligation can be made. The Group warrants its
products against defects and accrues for such warranties at the time of sale
based upon estimated claims. Actual warranty costs incurred are charged
against the provision when paid.
Sales and sales deductions
Sales include the invoiced net amounts after deduction of rebates and are
recognised upon shipment of products to customers. Credit notes issued
subsequently are deducted.
Sales deductions are recognised when the sales are recorded.
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