ANNUAL REPORT 2004 - ELMOS Semiconductor AG

GROUP STATUS REPORT FINANCIAL STATEMENTS GROUP STRUCTURE GLOSSARY
Financial statements
ÿ Notes
Auditor’s certificate
14. INTANGIBLE ASSETS
On June 29, 2001 the U.S. Financial Accounting Standards Board issued Statements
No. 141, “Business Combinations”, and No. 142, “Goodwill and Other Intangible As-
sets”. Statement No. 141 changes the criteria to recognize intangible assets apart from
goodwill. Under statement No. 142 goodwill and indefinite lived intangible assets are
no longer amortized but reviewed annually, or more frequently if impairment indica-
tors arise, with regard to the necessity of extraordinary depreciation.
The company applied these statements over the fiscal year ended December 31, 2004.
Adoption of these statements resulted in goodwill not being amortized. In addition
an impairment review was carried out in 2004 not showing a need for depreciation.
The company states goodwill of 8,314,399 Euro as of December 31, 2004 and 7,622,344
Euro as of December 31, 2003.
15. ACQUISITIONS
European Semiconductor Assembly (eurasem) B.V.
On January 8, 2001 the company acquired an interest of 95.84 percent or rather
8,658,365 shares of European Semiconductor Assembly (eurasem) B.V., an assembler
of semiconductors based in Nijmegen, Netherlands. eurasem acquired the remaining
free-floating interest of 2.66 percent in 2003 and 1.5 percent in 2004 and transferred
this interest to the company. The total purchase price for the 100 percent interest was
twelve million Dutch Guilders (5.45 million Euro). Financial statements and balance
sheet of eurasem were included in the company’s consolidated financial statements
as of December 31, 2001. The company included the full twelve months’ business ac-
tivity of eurasem in its income statement. The acquisition resulted in goodwill of 137
thousand Euro as a consequence of the takeover of the remaining minority share in
2004.
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