Consolidated Financial Statements of the Stadtwerke Leipzig Group ...

alance sheet. See the information provided
on financial derivatives for more details on the
valuation of interest rate options shown on the
balance sheet (point 3).
Cash resources (cheques, cash at bank and
in hand) are shown at their nominal value.
Amounts in foreign exchange are translated at
the exchange rate on the reporting date or at
their current fair value, whichever is lower.
Prepaid expenses
Prepaid expenses include expenses paid before
the balance sheet date if they cause work for a
certain time after this date.
2.2 Equity and liabilities
Equity capital
The subscribed capital is reported at its nominal
value. The retained earnings contain the special
reserves pursuant to section 27 subsection 2 of
DMBilG.
Special items
The Special item with partial reserve character
is released to income according to plan. The
Special item is always released to income at the
end of each preferential period on a straight-line
basis, either for the remaining useful life of the
fixed asset or on retirement of the subsidised
fixed assets. Release begins at the latest, however,
when the sum of total regular depreciation
and special depreciation exceeds the amount of
the original and production cost.
Capital investment grants and bonuses are
shown under Liabilities as a Special item for
fixed assets. Capital investment grants are fully
released to income, either over the useful life
of the fixed assets or on their retirement. The
release of the capital investment bonuses to income
is based on the across-the-board assumption
of a twenty-year useful life.
The annual release of the Special item for building
cost subsidies amounts to 5% for building
cost subsidies received up to 31 December 2002.
Building cost subsidies received after 1 January
2003 are released over the useful life of the
subsidised assets.
42 | Annual Financial Statements of Stadtwerke Leipzig GmbH