ANNUAL REPORT 2004 - ELMOS Semiconductor AG

MANAGEMENT BOARD ELMOS – THE COMPANY THE ELMOS SHARE CORPORATE GOVERNANCE
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The voting rights distribution at MECHALESS corresponds with the interest quota, as
does the allocation of gains and losses. MECHALESS was included in the consolidation
as of January 1, 2004 for the first time. No considerable differences result from the
purchase price allocation within the context of first consolidation. The net income of
MECHALESS amounted to 94,000 Euro in 2004 and the included net assets came to
174,000 Euro as of December 31, 2004.
Cash and cash equivalents
The company considers all highly liquid investments purchased with an original ma-
turity of three months or less cash equivalents.
Marketable securities
Marketable securities consist primarily of equity securities. Marketable securities are
stated at fair value as determined by the price achievable on the market as of the bal-
ance-sheet date. By policy, the company invests primarily in high-grade marketable
securities. All marketable securities are defined as available-for-sale under the provi-
sions of Statement of Financial Accounting Standards (“SFAS”) No. 115, “Accounting
for Certain Investments in Debt and Equity Securities”.
Marketable securities
SFAS No. 115 clarifies that a company is to determine for the individual equity securi-
ties classified as available-for-sale whether a decline in fair value below the amor-
tized cost basis is other-than-temporary.
Purchase cost
Euro
Insofar as the decline in fair value is assessed to be other-than-temporary, the total
amount of the write-down is included success-effective in the income statement.
So far fair value of the securities has been written off success-ineffective under
“accumulated other comprehensive income” as part of shareholders’ equity.
Fair value
Euro
Equity securities – December 31, 2003 20,260,320 8,438,742
Equity securities – December 31, 2004 19,060,318 3,629,904