Annual Report 2010 - Frauenthal Holding AG

108 Annual Report 2010
Consolidated Financial Statements Frauenthal Holding Group 2010
C.noteS to the ConSolidated StateMent oF FinanCial PoSition
[16] Non-current assets
Movements in the various consolidated non-current asset items, and the details of depreciation and amortisation for the
year are shown in the non-current asset movement schedule. The effects on non-current assets of changes in the scope of
consolidation, and of differences between the translation of foreign subsidiaries’ assets at the exchange rates ruling at the
beginning and end of the year, are shown separately.
Intangible assets
The capitalised development costs relate entirely to the diesel catalyst manufacturing operation in the Industrial Honeycombs
Division.
Development costs
EUR ’000
31 dec. 2009 Additions Disposals Amortisation 31 dec. 2010
Frauenthal group 780 0 0 -229 551
In 2010 there was no income from the capitalisation of development costs (2009: nil). This item is taken to the “Work
performed by the entity and capitalised” income statement item. Amortisation of development costs, amounting to EUR
229,000 (2009: EUR 392,000) is stated as “Depreciation, amortisation and impairment”.
The comparative figures for 2009 were as follows:
Development costs
EUR ’000
31 dec. 2008 Additions Disposals Amortisation 31 dec. 2009
Frauenthal group 1,217 0 -45 -392 780
Research and development costs totalling EUR 2,241,000 (2009: EUR 1,278,000) were recognised as expenses. They largely
arose in the Industrial Honeycombs Division, which spent EUR 1,591,000 (2009: EUR 1,278,000) and the Automotive Components
Division, which was responsible for EUR 650,000 (2009: nil) of the expenditure.
EUR ’000
2010 2009
research and development costs 2,241 1,278
The value of goodwill is yielded by the approved budget fi gures for 2011, and conservative estimates for subsequent years,
partly based on authoritative market studies, and the projected cash fl ows derived from these estimates over a period of
fi ve years. The current carrying amounts were compared to the valuations so calculated (the recoverable amount being the
higher of value in use or net realisable value).
Goodwill is tested for impairment at least once a year. No impairment was recognised in 2010. The breakdown of goodwill
at 31 December 2010 was as follows:
Goodwill in EUR ‚000 31 dec. 2009 Additions
Disposals Amortisation 31 dec. 2010
Styria Group 11,547 0 0 0 11,547
Linnemann-Schnetzer Group 0 0 0 0 0
Pol-Necks Sp.zo.o. 2,000 0 0 0 2,000
SHT Haustechnik Group 8,307 0 0 0 8,307
Frauenthal group 21,854 0 0 0 21,854